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Skilled Nursing at VA Expense

December 26, 2015

by Lawyers With Purpose with One Comment Asset Protection Estate Planning Drafting Software Legal Technical VA

“But I won’t ever need Medicaid. I’ll be in a VA nursing home.” You may have heard this before from a client in your attempts to consider the possible need for Medicaid in a veteran’s estate planning. Hopefully the client will never require skilled nursing care, but the reality is that the VA will only pay for or subsidize veterans who need nursing home care due to a service-connected disability or any vet with a combined service-connected disability rating of 70% or more and who need skilled nursing care. The VA only provides nursing home care for individuals in other categories IF beds and resources are available.

First, what do we mean by skilled nursing care and what exactly is a VA nursing home? Medicare.gov defines skilled nursing care as “Care given or supervised by registered nurses. Nurses provide direct care; manage, observe, and evaluate a patient’s care; and teach the patient and his or her family caregiver.” It goes on to say, “Any service that could be done safely by a non-medical person (or by yourself) without the supervision of a nurse isn’t skilled nursing care.” Title 38, Chapter 1 of the Code of Federal Regulations, which relates to the VA, defines a nursing home as:

(1) Any extended care facility which is licensed by a State to provide skilled or intermediate-level nursing care,

(2) A nursing home care unit in a State veterans' home which is approved for payment under 38 U.S.C. 1742, or

(3) A Department of Veterans Affairs Nursing Home Care Unit. [38 CFR 3.1(z)]

The first type of nursing home is one not affiliated with the VA at all. These are private facilities, and probably the majority of nursing homes in which your clients may reside are of this kind. The second type of nursing home is a state veterans’ home that is owned, operated and managed by the state, but must be formally recognized and certified by the VA on an ongoing basis. The state, however, determines the criteria for admission, even though the facility may receive funds from the VA to help subsidize the cost of care to veterans. The third type is what is commonly called a VA nursing home, even though the VA doesn’t call them nursing homes anymore. The VA introduced the term “Community Living Center” and seeks to make the nursing home as much as possible like a real home.

As stated earlier, only veterans with both a documented need for skilled nursing care and who have a service-connected disability that meets certain criteria will qualify for this care at a VA nursing home at no charge. Veterans with non-service-connected disabilities and veterans with lesser-rated service-connected disabilities can apply as long as they require skilled nursing care, but they may be subject to long-term care co-payments.

There are also some other limitations if your client insists on a VA nursing home. There are far fewer of these than the other types of nursing home, and thus there might not be a VA nursing home in your client’s geographical area. State Veterans Homes are fortunately much more common. You can find a directory of State Veterans Homes at the website of the National Association of State Veterans Homes at http://www.nasvh.org/StateHomes/statedir.cfm.

Furthermore, you can’t just decide you are going to a VA nursing home, even if you believe you meet the level of care and rating requirements. There is a process to be evaluated for VA nursing home care. You must first be enrolled for Veterans Health Benefits, which is another process in and of itself and can include an evaluation of income and assets. For example, veterans with non-service-connected disabilities applying for extended care or the Nursing Home Care Unit may be required to complete the VA Form 10-10EC to determine the family's current income and assets. Then, once enrolled with the Veterans Health Administration, you must then be evaluated by a primary care provider or a geriatric specialist for nursing home care.

Another limitation of VA nursing homes is that they generally only accept veterans and not surviving spouses. Some State Veterans Homes do admit surviving spouses and even parents, but that depends on the state. For example, California has veterans assisted living facilities and skilled nursing facilities that will admit spouses, but California also has aggressive estate recovery policies to recoup state funds used to pay for those facilities. Finally, veterans who qualify for VA nursing home care may not always remain qualified. Veterans may be discharged from a VA nursing home without consent when VA nursing home care is no longer needed; for example, if the veteran's needs can be met at home or in a private nursing home close to the family.

If, despite all these hurdles, your client still wants to explore skilled nursing at VA expense or any other long-term care resources of the VA, visit the VA’s webpage at http://www.va.gov/GERIATRICS/index.asp to find information related to geriatrics and extended care.

As we approach the end of the year, we want to personally tell you how thankful we are to have you as a subscriber of the LWP Connection blogs and newsletter. Whatever the reason is that you stay connected with us each week via email (i.e. substantive law training, marketing assistance, practice management tips)…we are glad you are here

Yet, as you work on your practice goals and plans for 2016, please know that the guidance and mentorship you receive here is only THE TIP OF THE ICEBERG of what we offer at LWP.

We want these same results for YOU in 2016! It’s time to check out what becoming a Lawyers With Purpose Member would look like for you and your practice. If you’re even a little curious about what we offer in the Lawyers With Purpose program and how becoming a member will forever change your practice, you owe it to yourself to spend a few minutes reading through this page: www.joinlwp.com.

Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and Director of VA Services for Lawyers With Purpose.

Victoria L. Collier, Veteran of the United States Air Force, 1989-1995 and United States Army Reserves, 2001-2004. Victoria is a Certified Elder Law Attorney through the National Elder Law Foundation; Author of “47 Secret Veterans Benefits for Seniors”; Author of “Paying for Long Term Care: Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit”; Founder of The Elder & Disability Law Firm of Victoria L. Collier, PC; Co-Founder of Lawyers with Purpose; and Co-Founder of Veterans Advocate Group of America.

Seeking Congressional Assistance to Get VA Claim Approval

November 10, 2015

by Lawyers With Purpose with 3 Comments Asset Protection Systems & Processes VA

What is Congressional Assistance?

It has been “X” months since you filed the VA formal claim, and your sole correspondence from the VA consists of periodic form letters apologizing for the delay. Your calls to the VA inquiring about status reveal only that the claim is still pending, but your client is getting exasperated hearing that the average processing time for approving VA claims is less than “X” months.

Congressional assistance is when a private constituent requests a member of Congress to inquire on their behalf in the administrative proceedings of a governmental agency, in this case the Department of Veterans Affairs. The purpose of doing so is to force the VA to pull a specific claim from their backlog and expedite it. The actual result is not always that, it seems. There are reports of success from various internet forums dedicated to veterans’ benefits – people who swear that, had it not been for Senator So-and-So, their VA claim would never have been approved. But there are even more grumblings on the same forums that such congressional inquiries merely elicit a form letter, and then your file returns to the backlog BUT at the end of the queue. This is horrific enough to scare you off from considering making any such inquiries, but at times of sheer desperation it can be a tool to make the VA respond, or to be able to get a copy of a VA response. Then sometimes a client’s family will demand it because apparently it had been done successfully by their hairdresser’s brother-in-law’s grandfather. Therefore, you should be aware of the option of requesting congressional assistance with a VA pension claim, how to do it, and when it may be appropriate to do so.

How do you file a Congressional?

First, you need a member of Congress. Our firm generally uses a senator. I don’t know that there is any advantage to having a senator rather than a member of the House of Representatives making the inquiry. However, you must be aware that not all members of Congress may be receptive to making such inquiries. If their platform and/or expressed political views suggest that veterans’ benefits may not be a priority, you may need to approach with caution. Most members of Congress have websites that post information for the types of assistance they provide. Members of Congress who do count a large number of veterans among their constituents may even regularly reach out to explain what specific services they can provide for them. This assistance generally requires a privacy release form that must be signed by the veteran or other type of claimant so the VA will release information to the congressperson’s office.

Our firm sends the privacy release form with a letter requesting assistance on behalf of our client, and includes a timeline of the claim highlighting any major dates relevant to the claim process. We also mention in this letter any circumstances that may merit that the claimant’s request be considered with utmost urgency. This would include statements, if applicable, as to the claimant’s terminal condition, advanced age, and/or financial hardship. Once their office files the inquiry with the VA, that agency must respond within a certain amount of time, even if it is just a form letter apologizing for the delay. The congressperson’s office generally then forwards a copy of the VA correspondence to the claimant.

When do you file the Congressional?

This is the hardest question to answer, and the only quick and easy way to do so is as follows: It depends.

You may be pressured by your client to file a request for congressional assistance at any point after submitting the formal claim, when presumably the VA should have everything it needs to decide the claim. Your client can also certainly request assistance on their own without your firm’s involvement. However, given the mixed results, I would recommend that you consider it primarily as a last resort, meaning you should exhaust all other means first, like calling the VA for status inquiries and to follow up on submitted requests to expedite a claim due to terminal condition, advanced age and/or financial hardship. You also need to decide, given the average amount of time it is taking for the VA to process your firm’s claims, at how many months you are going to seriously consider requesting congressional assistance.

Our firm currently uses the one-year mark after filing a formal claim to start considering this option, but this is subject to change as we see claim processing times change over the years. Bear in mind that processing times vary regionally, and that overuse of your local congressperson will not earn you much love from his or her office. Reserve the request for congressional assistance for those VA claims that truly seem to have dropped off the face of the earth, or for those claimants who may end up in extreme financial straits or who for medical reasons may not survive to receive the benefits to which they are entitled unless they are awarded right away.

Lawyers With Purpose is offering a FREE Webinar on Wednesday, December 2nd at 12 EST on "Trust Planning for VA Benefits After the Proposed Look Back Takes Place" – click here to register now. Transfer penalties for VA claimants are expected to be implemented in February 2016. What does that mean for your trust drafting services? Will we need to change the language in our trusts? Or, worse yet, start using totally new trusts? Attend the upcoming VA Tech School Training on 12/2/15 on Drafting Trusts After the Laws Change and find out! Register today as we have limited space!

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC, and Director of VA Services for Lawyers With Purpose.

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Focus on Forms: Getting Benefits for Widows

October 13, 2015

by Lawyers With Purpose with No Comment Estate Planning Drafting Software Systems & Processes VA

Today’s post is another installment in the Focus on Forms series that considers and discusses some of the most common forms associated with Department of Veterans Affairs (VA) pension claims. The goal of the Focus on Forms series is threefold: to define the purpose of the forms; to discuss how they should be completed; and to recommend what to file with these forms. Today’s subject is the 21-534EZ Application for DIC, Death Pension, and/or Accrued Benefits.

The VA form 21-534EZ is used by a veteran’s surviving dependent to apply for non-service-connected pension, Dependency and Indemnity Compensation (DIC), and accrued benefits. The veteran’s surviving dependent may be a spouse, a parent, or a child. This form is the counterpart to the VA form 21-527EZ, however the 21-534EZ can be used to apply for the various types of benefits outlined above, while the 21-527EZ can only be used by a veteran applying for non-service-connected pension. If you are seeking service-connected compensation benefits for a veteran, you would use the VA form 21-526EZ.

When you download the 21-534EZ from the VA website, the document has 11 pages: six pages of instructions and five pages of form. There is much valuable information provided here. The first few pages of instructions explain what is, and how to file, a Fully Developed Claim (FDC), which is a relatively quicker claim process compared to the Standard Claim Process. The remaining instruction pages discuss what evidence you should provide to support your claim, depending on the type and/or level of benefit sought: Base, Housebound, or Aid & Attendance. The last page of instructions also includes information regarding benefits for a helpless child of a veteran, validity of marriages, and the effective date.

There are 13 sections to VA form 21-534 EZ, numbered with Roman numerals. Three of these are labeled “Must Complete,” while the other 10 sections are to be completed only if applicable. You may recall that this is the opposite of VA form 21-527EZ, which has 10 compulsory sections and three optional. The reason for this is partly because the form 21-534EZ can be used for more than one type of benefit, thus some sections only apply to a particular benefit. Another reason is that, since there usually is a prior claim already on file with the VA, there is certain info that the VA already has, and thus it does not need to be provided again. The sections you should complete for death pension are sections I to III, VII to IX, and XI to XII – that is 8 sections total.

Sections I and II are for the veteran’s and claimant’s Personal and Service Information, respectively. Most of the fields here are self-explanatory. If the surviving spouse previously filed a claim with the VA or you already filed an informal claim/intent to file claim, you may have the VA file number to put in field 6; otherwise put “Unknown.” If the VA ever assigned the veteran a file number, the surviving spouse inherits that same file number. Field 13 asks if the claimant is a veteran, oddly enough because if the claimant is a veteran, he/she should be filling out forms other than the VA form 21-534EZ. Field 16 allows you to select which benefits the claimant is seeking, and you may check all that apply. The instructions for Section II Veteran’s Service Information indicate that it need not be completed if the veteran was receiving VA Compensation or Pension benefits at the time of death, because it is assumed that this would already be on file with the VA; however, as incomplete forms are not always received well by the VA, it is recommended that you complete this section despite these instructions.

Section III is for Marital Information and by definition is applicable only when the surviving spouse is completing this form. Completion of this section may make or break a claim, the reason being that with very few exceptions the surviving spouse only has a claim to the veteran’s pension by virtue of marriage. In most cases, if the claimant cannot prove a valid marriage to the veteran, the claim will be denied regardless of how eligible he/she otherwise might be. The next three sections are only required if the claimant is a dependent child (Section IV), the veteran’s parent (Section V), or is seeking Dependency and Indemnity Compensation (Section VI); otherwise they can be crossed off as non-applicable.

The next three sections (VII to IX) are related to finances and are similar to those same-numbered sections in VA form 21-527EZ. Section VII: Net Worth is for reporting all countable assets of the claimant, and any dependents should be listed here as of the effective date. Sections VIII and IX are both for reporting income of the claimant and any dependents as of the effective date. The difference is that Section VIII: Gross Monthly Income should be used to report income that is received in fixed, monthly payments, such as Social Security or retirement pension, while Section IX: Expected Income is for reporting annual amounts of income that are not received in fixed, monthly payments. The effective date is the date that the informal claim or intent to file a claim was filed, or if not filed, the date the formal claim was submitted. Every source of income received by the claimant and any dependent should appear in either section VIII or IX, but never in both.

Section X may be used for reporting unreimbursed medical, last illness, burial, or other expenses; however, if there are many expenses, the VA form 21P-8416 Medical Expense Report can be used, in which case section X is completed by cross referencing VA form 21P-8416. The last page and the three last sections of form 21-534EZ consist of Direct Deposit Information (XI), Claim Certification and Signature (XII), and Witnesses to Signature (XIII). The first two of these sections must be completed and the claimant must sign Section XII, as the VA does not recognize Powers of Attorney. The final section is only applicable if the claimant signed the previous section with an “X,” in which case two witnesses must also sign to vouch for the identity of the signer.

What you file with the VA form 21-534EZ should support the data you entered in the 13 sections of the form. This would include photo identification, birth certificate and military discharge paperwork. More importantly, include marriage certificates, divorce decrees and/or death certificates to properly document marriage to the veteran and the proper dissolution of any prior marriages. The practice in our firm is also to provide financial statements to support the net worth and income as of the effective date reported in sections VII to IX, although this is not required by the VA.

In summary, the VA Form 21-534EZ is the primary application form for a veteran’s surviving dependent seeking death pension benefits, Dependency and Indemnity Compensation (DIC), and/or accrued benefits. It is best practice to complete all three mandatory sections of this form and any of the remaining 10 sections, if applicable, and to provide all documents that support what is declared on the form. Keep up to date with changes to VA forms by updating your LWP-CCS software whenever new releases are available and by checking the VA website regularly.

Did you know we offer a FREE "VA Tech School" webinar every month? Click here to register now for this complementary webinar on Wednesday, November 4th where we'll be talking about all the changes that have happened and will happen to VA Benefits in 2015 and 2016 that may impact how you do VA planning in your firm. Register now to find out what you will miss from the Tri-annual Practice Enhancement Retreat legal-technical focus session “Changes to VA Benefits in 2015/16 and How to Profit From Them”.

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and Director of VA Services for Lawyers with Purpose.

Lawyers With Purpose Unites With Life Care Funding

September 10, 2015

by Lawyers With Purpose with No Comment Asset Protection VA

Do you ever feel like you don’t know how to help a client? That the traditional planning strategies just won’t work in the situation presented? Here is a common scenario:

Jane, a widow who lives in an assisted living facility, has two adult children who are independent with no disabilities. When Jane’s husband, David, died two years ago, Jane gave each of her children $100,000 without consulting a lawyer. At that time, Jane was living at home and doing well. About six months after David died, Jane began experiencing a series of mini-strokes. The cost of her care is depleting her resources rapidly. The children really want to avoid putting her in a nursing home but are concerned she will need one soon. During your meeting, you naturally raise the possibility of a transfer of assets penalty due to the prior transfers.

If you are like many elder care attorneys, you will likely try to find ways for the remaining funds to stretch out during the penalty period. You may even propose that the children return the gifts if possible. It is not possible.

Is there anything you are overlooking? Maybe a dormant asset you can utilize?

There may be. Have you asked your client if she has life insurance?

Term life, universal life, and whole life insurance policies can be sold to pay for care. In Jane’s case, she has a $300,000 policy. She was considering letting it lapse because she can no longer afford the annual premiums. Instead of letting it lapse, let it work for her to pay for care during the Medicaid look-back period. Assuming a company purchases the policy for 40% of its face value, Jane would then have a fund of $120,000, or $3,333 per month for 36 months, to pay for care during the remaining five-year look-back. Jane’s income, added to these additional funds, will be sufficient to cover the cost of the assisted living facility for three years. At that time, the family can feel comfortable and confident about transitioning Jane into a nursing home and applying for Medicaid, if necessary.

Lawyers with Purpose is proud to announce that we have teamed up with Life Care Funding to assist lawyers and clients in identifying good situations to fund care!

To learn a little more about Life Care Funding for yourself, your team and your clients click here. If you have clients that could benefit from converting a life insurance policy into a long term care benefit click here for the Long Term Care Benefit Qualification Form. Or to learn more this new planning option for seniors, go to www.LifeCareFunding.com. Never hesitate to contact Life Care Funding directly at 888-670-7773 or email info@lifecarefunding.com.

Chris Orestis, CEO, will be sharing more information at the Lawyers with Purpose Tri-Annual Retreat, October 21-23, in Phoenix, Arizona. If you haven't registered yet – we are reaching capacity! Register today before pricing goes up and all seats are filled.

Victoria L. Collier, Co-Founder, Lawyers with Purpose, LLC, www.LawyersWithPurpose.com; Certified Elder Law Attorney through the National Elder Law Foundation; Fellow of the National Academy of Elder Law Attorneys; Founder and Managing Attorney of The Elder & Disability Law Firm of Victoria L. Collier, PC, www.ElderLawGeorgia.com; Co-Founder of Veterans Advocates Group of America; Entrepreneur; Author; and nationally renowned Presenter.

Big Brother is Watching: Fiduciary Accounting

August 19, 2015

by Lawyers With Purpose with 3 Comments Estate Planning Drafting Software VA

What is it?

When the Department of Veterans Affairs (VA) determines that a claimant is incompetent and needs assistance managing their VA pension, it approves the nomination of a fiduciary to do just that. The fiduciary is responsible for opening a dedicated bank account for VA funds only and for spending VA funds according to an agreement that the VA field examiner arranges and approves. In order to ensure that the fiduciary is doing what he or she is supposed to be doing, the VA may require the fiduciary to submit an annual accounting that documents how VA funds were spent.

Who completes it?

There is more than one type of fiduciary. The most common type you may encounter is the federal fiduciary, as opposed to a court-appointed fiduciary. Federal fiduciaries can be a spouse or other family member, a legal custodian, or even an organization like a state/local government entity or a health care facility.

When do you complete it?

It is up to the field examiner to decide whether a fiduciary should be required to submit an accounting, and if so, how often. For example, an accounting should not be required of a spouse payee unless there are unusual circumstances. If it does need to be completed, it is generally required annually, although the VA can request one at any time. For a regular annual accounting, the fiduciary should receive a letter a few months before the deadline explaining that the accounting is due. The due date is 30 days after the end of the accounting period, which is generally a one-year period that begins with the anniversary of the date on the letter appointing the fiduciary. You can request an extension if necessary.

How do you complete it?

The fiduciary accounting is fairly straightforward, although it can be confusing the first time you do it. The VA should send you two forms to complete: the VA form 21-4706b Federal Fiduciary’s Account and the 21-4718a Certificate of Balance on Deposit and Authorization to Disclose Financial Records. The second form is to be completed by the bank where the VA account was set up and is used to document the current balance plus any interest earned. Once completed by the bank, the form 21-4718a also needs to be signed by the fiduciary. These two forms should also be filed with copies of all bank statements for the VA account during the one-year accounting period.

The VA form 21-4706b, which is to be completed by the fiduciary, is used to report all activity of the VA account during the accounting period. It should not include any other accounts that the claimant may own. Despite the fact that the form requests “Amount received from Social Security” or “Amount received from other sources,” these are not reported on this form unless this income is being deposited in the VA account. Section I – Statement of Account on the first page comprises the following five parts:

Money Received
Money Spent
Total Estate at End of Period
Assets at End of Period
Total Assets

In part 1, “Money Received,” where it states under Item A, “Total Estate at beginning of period,” you must enter the balance of the VA account at the start of the accounting period. If this is the first fiduciary accounting, that balance may have been $0. Once you fill in this starting balance, you itemize what monies were received in the VA account in the boxes below. Any regular, monthly VA benefits should be listed under Item 1B, where you are provided with two lines in case the monthly benefit changed during the accounting period. Any lump sum deposits of retroactive VA benefits should be listed separately as items 1E to 1H and classified as VA lump sum.

In part 2, “Money Spent,” you list any expenses that were paid for the claimant during the accounting period from the VA account. Most of the time these expenses are medical in nature and can be listed under items 2G to 2L, since none of the pre-printed categories include medical. By subtracting the total spent in part 2 from the total received in part 1, you obtain the figure in part 3, “Total Estate at End of Period.” Part 4 is then where you list all current assets, which is usually what is contained in the VA account. If savings bonds were purchased with VA funds, you would also provide the total value of such bonds under item 4D and list those bonds individually on the second page. By totaling the assets in part 4, you obtain the figure in part 5, “Total Assets.” The goal of the fiduciary accounting is that the figure in part 3, “Total Estate at End of Period” matches the figure in part 5, “Total Assets.” If they do not, then review your entries and calculations, because you are missing something.

Result

Once the fiduciary hub has audited and approved the accounting, you will receive a letter stating as much, which may also tell you if future yearly accountings will be necessary. If you do not complete the accounting on time, you risk a temporary termination of benefits, the appointment of an alternate fiduciary, and even an investigation for possible misuse of funds. For more information, visit http://www.benefits.va.gov/FIDUCIARY/references.asp for a list of further resources regarding the VA fiduciary program.

If you want to learn more about what it means to be a Lawyers With Purpose member, consider joining us for the only event for estate law, asset protection and elder law professionals AND the teams that support them! Our Tri-Annual Practice Enhancement Retreat is October 19-23rd. Registration is open and you can still grab a spot at Early Bird Pricing. To register contact Amanda Ross at aross@lawyerswithpurpose.com or 877-209-0326 x 103.

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and Director of VA Services for Lawyers With Purpose.

Victoria L. Collier, Veteran of the United States Air Force, 1989-1995 and United States Army Reserves, 2001-2004. Victoria is a Certified Elder Law Attorney through the National Elder Law Foundation; Author of “47 Secret Veterans Benefits for Seniors”; Author of “Paying for Long Term Care: Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit” Founder of The Elder & Disability Law Firm of Victoria L. Collier, PC; Co-Founder of Lawyers with Purpose; and Co-Founder of Veterans Advocate Group of America.

VA Aid and Attendance Benefits Qualification Worksheet

August 14, 2015

by Lawyers With Purpose with No Comment Asset Protection Estate Planning Drafting Software VA

What is it?

The VA Qualification Worksheet is an invaluable tool for estate planning when your client is a wartime veteran or the surviving spouse of a wartime veteran. It allows you to input a client’s income, medical expenses and assets to determine not only whether he or she will qualify for VA benefits, but also how much exactly the client would receive each month from the VA after approval. This tool is essentially mathematical in function, as it does not take into account whether there is eligibility based on wartime service or character of military discharge. The calculations that form the basis of the worksheet are the same used by the VA.

When the VA evaluates a claimant’s income and assets for eligibility, it is considering certain factors. First, gross income cannot exceed the given maximum annual pension rate (MAPR) for any year. The VA usually updates MAPRs each year and publishes them on its website at http://www.benefits.va.gov/pension/rates.asp. Not only can they change every year, but MAPRs also vary according to whether the claimant is a veteran or a surviving spouse, and also with the number of dependents, if any. Fortunately, one can use unreimbursed medical expenses to help offset gross income so that it is lower than the MAPR. Gross income minus these medical expenses is called Income for VA purposes, or IVAP. To get the maximum pension, the IVAP must be $0. IVAP between $1 and the MAPR will only result in a partial benefit.

Second, the claimant cannot have excessive net worth, even though there is no specific asset limit. As the VA Adjudication Procedures Manual Rewrite M21-1MR, Part V, Subpart iii, 1.J.70.a states: “No specific dollar amount can be designated as excessive net worth.” Nevertheless, because the manual M21-1MR, Part V, Subpart iii, 1.J.70.b goes on to state, “A formal administrative net worth decision is required if the beneficiary has net worth of $80,000 or more,” $80,000 has become the widely acknowledged asset limit for VA eligibility. This asset limit applies to both single and married claimants.

In rare cases, the VA will apply what is called age analysis when evaluating assets pursuant to the VA Adjudication Procedures Manual Rewrite M21-1MR, Part V, Subpart iii, 1.J.70.a, which states that “a number of variables must be taken into consideration when making a net worth determination.” These variables include income, expenses, and the claimant’s life expectancy. By applying an age analysis, the VA is attempting to determine whether “a claimant’s assets are sufficiently large that the claimant could live off these assets for a reasonable period of time,” at which point the VA can “deny pension for excessive net worth” (M21-1MR, Part V, Subpart iii, 1.J.67.g). While the adjudicators rarely apply this tool, you should be aware of the possibility.

How to use it

The VA Qualification Worksheet is part of the Lawyers with Purpose VA software and is also available as a standalone document, in either Microsoft Excel or Microsoft Word format, that you can complete by hand. Both versions are available for download from the members-only section of the LWP website. The worksheet is composed of six sections: VA Countable Income, Deductible Medical Expenses, Assets Countable in VA Net Worth, Maximum Applicable Pension Rate (MAPR), VA Allowable Net Worth without Age Analysis, and VA Allowable Net Worth with Age Analysis. Once you enter the appropriate information in the first three sections, the calculations will give you the results for the other three sections.

When to use it

The VA Qualification Worksheet’s value at the beginning of the VA planning process is obvious, as it helps identify how much of a benefit a client can expect to receive, if any. However, it is also valuable to run once you have completed a claim but before you file it, in order to verify that the results are what you expected. This can increase the success rate of your claims. If the claimant does not qualify for the maximum monthly benefit, there may still be time to correct it or, at the very least, you can inform your client of the issue to minimize any surprise or disappointment with the outcome. The worksheet should also be used at every annual review to confirm the monthly benefit given the claimant’s most recent income, assets, and medical expenses, and to determine whether any further planning needs to be done to ensure continued VA eligibility.

If you're not a Lawyers With Purpose member and want to learn more about the VA Proposed 3 Year Look Back, join our FREE WEBINAR on Wednesday, August 19th at 4 EST by clicking here to register. (Members – you already have access to the webinar on the Members Only section of the website!).

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and VA Production Coordinator for Lawyers With Purpose.

Focus on Forms: VA Form 21-527EZ

August 9, 2015

by Lawyers With Purpose with 2 Comments Estate Planning Drafting Software VA

This blog post will focus on one of the most common forms used in VA improved pension (with aid and attendance) claims. As an introduction, I will start with some general comments on the use of VA forms. Like most well-established bureaucracies, the Department of Veterans Affairs is partial to its own forms. There are very few scenarios involving VA pension claims that do not call for at least one form. Using the wrong form or the wrong version of a form, or completing the right form incorrectly, can have serious unintended consequences to your claim. It could be delayed or outright denied.

Because it is so important that you use the most current version of a form, the software developed by Lawyers with Purpose to complete claim forms is regularly updated to incorporate form revisions. Otherwise, to ensure that you are using the most up-to-date versions, we recommended that you go to the source: namely, the VA website at http://www.va.gov/vaforms/, which has 517 forms in its database. The goal of this post will be threefold: to define the purpose of the form; to discuss how to complete it, section by section; and to recommend what to file with the form.

The VA form 21-527EZ Application for Pension, which is used by a veteran to apply for non-service-connected pension benefits. The form is only for veterans filing a claim. If the claimant is a surviving spouse, then you would use the counterpart VA form 21-534EZ. When you download the 21-527EZ from the VA website, the document has eight pages – four pages of instructions and four pages of form. The first two pages of the instructions explain what it is and how to file a Fully Developed Claim (FDC), which is a relatively quicker claim process in comparison to the Standard Claim Process. Page 3 of the instructions discusses what evidence you should supply to support your claim, depending on the level of benefits being sought: Base Pension, Housebound, or Aid & Attendance. The last page of instructions relates to benefits for a helpless child of a veteran, validity of marriages, and the effective date.

There are 13 sections to VA form 21-527EZ, numbered with Roman numerals; 10 of these are labeled “Must Complete,” while the other three sections are to be completed only if applicable. Sections I and II are for the Veteran’s Personal and Service Information, respectively. Most of the fields here are self-explanatory. If the veteran previously filed a claim with the VA or you already filed an informal claim/intent to file a claim, you may have the VA file number to put in field 6; otherwise put “Unknown.” The question in field 9, “What disability(ies) prevents you from working?”, can be answered by putting “over 65.” Section III is for the Veteran’s Work History, which, unless they are currently working, you will complete by putting “Retired” in the first block of column 17A. The next three sections relate to the veteran’s family; specifically, marital history (IV and V) and dependent children (VI). You are required to complete Section IV regarding marital status. However, you should only complete Sections V and VI if the veteran is currently married or has dependent children, respectively, otherwise they can be crossed off as non-applicable.

The next three sections (VII to IX) relate to finances. The associated section names are a little misleading. For example, Section VII: Income Verification – Net Worth is for reporting net worth and not income, as the name may lead you to believe. All countable assets of the veteran and any dependents should be listed here as of the effective date. Sections VIII and IX are both for reporting income of the veteran and any dependents as of the effective date, the difference being that Section VIII: Income Verification – Monthly Income should be used to report income that is received in fixed, monthly payments, such as Social Security or retirement pension, while Section IX: Expected Income is for reporting annual amounts of income that are not received in fixed, monthly payments. The effective date is the date that the informal claim or intent to file a claim was filed, or if not filed, the date the formal claim was submitted. Every source of income received by the veteran and any dependent should appear in either section VIII or IX, but never in both.

Section X is for reporting unreimbursed medical, legal, or other expenses. However, since the VA has a more extensive form to report medical expense, VA form 21P-8416 Medical Expense Report, we recommend you use that form instead and only cross-reference VA form 21P-8416 in Section X. The last page and the three last sections of form 21-527EZ consist of Direct Deposit Information (XI), Claim Certification and Signature (XII), and Witnesses to Signature (XIII). You must complete the first two of these sections, and specifically, the veteran must sign Section XII. The VA does not recognize Powers of Attorney. The final section is only applicable if the veteran signed the previous section with an “X.” In that case, two witnesses must also sign to document the identity of the signer.

When you file VA form 21-527EZ, you must also file verification documents. Simply put, what you file should support the data you entered in the 13 sections of the form. Whenever possible, provide photo identification, birth certificate, and military discharge paperwork. Moreover, and just as important, include marriage certificates and any divorce decrees or death certificates to document the proper dissolution of prior marriages. Their omission will almost certainly delay a claim when the VA has to request this information, wait to receive it, and then continue processing the claim. It is also recommended to provide financial statements to support the net worth and income as of the effective date reported in sections VII to IX.

In summary, VA Form 21-527EZ is the primary application form for a veteran seeking non-service-connected pension benefits. It is best practice to complete all 10 mandatory sections of this form and any of the remaining three sections, if applicable, and to provide all documents that support what is declared on the form. Keep up to date with changes to VA forms by updating your LWP-CCS software whenever new releases are available and by checking the VA website regularly.

If you want to learn more about VA benefits planning, or you are not a member and want to join us for our "Veterans Administration Proposed 3 Year Look Back And Other Law Changes" on August 19th at 4 EST register and reserve your spot by clicking here now.

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and VA Production Coordinator for Lawyers with Purpose.

Victoria L. Collier, Veteran of the United States Air Force, 1989-1995 and United States Army Reserves, 2001-2004. Victoria is a Certified Elder Law Attorney through the National Elder Law Foundation; Author of “47 Secret Veterans Benefits for Seniors”; Author of “Paying for Long Term Care: Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit”; Founder of The Elder & Disability Law Firm of Victoria L. Collier, PC; Co-Founder of Lawyers for Wartime Veterans; and Co-Founder of Veterans Advocate Group of America.

When the Law Firm Makes Mistakes on VA Claims

July 6, 2015

by Lawyers With Purpose with No Comment Estate Planning Drafting Software Legal Technical VA

I wish I could claim that I don’t make mistakes. I pride myself on my precision and attention to detail, so when I do make a mistake it pains me personally as well as professionally. However, mistakes do occur, especially when you are dealing with the amount of numerical data that your team does from identification numbers, dates, money figures, and account numbers, just to name a few.

I have experienced more than once the sinking feeling in my gut when I realize that I have committed an error. On two occasions, deadlines to file VA correspondence had passed – one was for filing an appeal and the other was for filing an initial application a month after the client expected us to. In each case, it cost the client money, which meant that it cost the firm money.

Dwelling on the mistake will only make it worse. After having realized that you made a mistake, what do you do next? Take these five steps!

Devise a solution(s)
Inform the attorney/supervisor
Inform the client
Implement the solution
Learn from the mistake

Devise a Solution

For some, the first instinct may be to try to fix or cover up the mistake. Let’s hope that is not you. The second inclination may be to rush directly to the attorney and confess. While there may be some situations when you should notify others in the firm immediately – for example, you neglected a deadline that is now four hours away – in most cases you should try to devise solutions to manage or overcome the error. If you cannot personally discern a viable solution, then at the very least pull pertinent documentation or regulations to present to the attorney when sharing the problem. Be aware that with some errors, there may be no solution other than to apologize and make it right with the client.

Inform the Attorney

After coming up with a solution or supportive documentation, it is a priority to inform the attorney or your supervisor. This is a difficult conversation to have. For guidance on how to initiate such a conversation, refer to another Lawyers with Purpose blog post, “A Tough Conversation”. Although this is not an easy conversation to have, it is crucial to remain as professional as possible and to focus on resolution. There will be plenty of time to cry about it at home, if necessary. It is important that the attorney knows that you take such occurrences as seriously as he/she does and that you are committed to making things right. The attorney may be livid at the situation, which can appear to be directed at you. The anger or frustration should be minimized if you come prepared with solutions.

Inform the Client

After the attorney has been able to problem solve, before taking any action, the client must be informed about the problem and any possible solutions or consequences. Depending on the type of error, the communication can be by email (i.e. we misspelled your father’s name on the VA application, we will send in a statement in support of claim to correct it); by phone (i.e. we didn’t file the application as soon as we told you we should, but we are filing it now); or by written correspondence in the mail (i.e. the appeal was due last week but we missed the deadline, so these are your options).

Implement the Solution

After the client has had an opportunity to respond, the next step is to implement the solution or action plan that was approved by the attorney and the client. Whatever the solution may be, act purposefully and diligently to implement it. You can tell a lot about a person’s character by the way they handle their mistakes.

Learn from the Mistake

Finally, you must LEARN from your mistakes. You may receive a note in your personnel file or even a reprimand. You may feel unfairly punished. Taking it personally will only paralyze you from moving forward. Be proactive and analyze why the mistake happened. Were your systems or processes not followed? Are there systems and processes that need to be added? Was someone not held accountable when they should have been? By determining why the mistake occurred, you can then proceed to figure out how not to repeat it. If you don’t take this final step, then you just made a bigger mistake than the one that started you down this path.

If you aren't a member and want to learn more about how Lawyers With Purpose can help you grow your existing estate or elder law practice into the practice of your dreams, join us on July 23rd for our Having The Time To Have It All webinar at 2 EST. Space is limited so make sure you mark your calendar and grab your spot today!

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and VA Production Coordinator for Lawyers With Purpose.

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What Is Your Independence Day?

July 1, 2015

by Lawyers With Purpose with No Comment Estate Planning Drafting Software Systems & Processes

On July 4, 1776, the Declaration of Independence was signed separating the original 13 colonies from Great Britain. It took an act of Congress and a committee of five to declare independence. The American Revolution precipitated and followed the signing, showing that people were willing to die for their independence. From the outset, Americans have celebrated July 4^th with parades, fireworks, barbeques, picnics and the like.

What freedoms are you fighting for?

Financial freedom?

Freedom from being tied to the desk at work?

Freedom from suppression of thought, creativity, or expression?

We allow so many things to hold us back from our own personal freedoms. Fear. Relationships. Money.

1n 1994, acclaimed country artist Martina McBride released “Independence Day”, written by Gretchen Peters, about an abusive husband and his wife who set their house on fire and “lit up the sky that Fourth of July.”

“Let freedom ring, let the white dove sing
Let the whole world know that today
is a day of reckoning.
Let the weak be strong, let the right be wrong
Roll the stone away, let the guilty pay
it's Independence Day.”

The wife had clearly had enough of the status quo and was ready for a change. Our forefathers had also had enough of the status quo and were ready for a change.

Are you tired of the status quo? Ready for a change?

Let this July 4^th be your Declaration of Independence. Decide what you want and what you are willing to fight for to achieve. Enlist your army to help you in your own personal revolution.

Members of Lawyers with Purpose break barriers and create freedom in their lives every day. The LWP community encourages and supports freedom. We celebrate independence and freedom together at our Tri-Annual Practice Enhancement Retreats.

If you want true independence and freedom, join the Lawyers with Purpose community. We are patriots paving the way for a better future. To learn more about what this means and who we are are a community, join our Having The Time To Have It All webinar on July 23rd at 2 EST. But register today as space is limited.

Victoria L. Collier, Veteran of the United States Air Force, 1989-1995 and United States Army Reserves, 2001-2004. Victoria is a Certified Elder Law Attorney through the National Elder Law Foundation; Author of “47 Secret Veterans Benefits for Seniors”; Author of “Paying for Long Term Care: Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit”; Founder of The Elder & Disability Law Firm of Victoria L. Collier, PC; and Co-Founder of Lawyers with Purpose, www.LawyerswithPurpose.com.

Knowing, Respecting, Honoring Veterans

May 7, 2015

by Lawyers With Purpose with No Comment Estate Planning Drafting Software Legal Technical VA

As the government benefits supervisor and paralegal for The Elder & Disability Law Firm of Victoria L. Collier, I work with both Medicaid applications and VA claims. However, VA cases dominate and easily outweigh Medicaid files in our outstanding caseload by a ratio of 4:1.

This may be due to Victoria’s being a wartime Veteran herself, her national recognition as the nation’s expert lawyer for VA Improved Pension with Aid and Attendance, or it may have to do with the length of time it takes to prosecute a VA claim until resolution. Regardless of the reason, I spend a great deal of time communicating with Veterans and their families and getting to know their personal history.

I often pore over military records for information – some of these so fragile that I fear making photocopies of them. Some Veterans keep meticulous records of their service and every administrative detail of their time in the military is recorded in documents that surely no one has looked at in years. Others have barely any record of their tour of duty at all and we must file a request for a copy of their discharge paperwork.

As I began to prepare for a trip to D.C recently, I automatically planned a trip to the National Mall, in particular the National World War II Memorial, Vietnam Veterans Memorial and the Korean War Veterans Memorial. I am a first-generation American of Argentine-born parents, neither of whom served in the American Armed Forces. My father did serve conscripted service in his home country and was told by his superiors that he was the worst soldier in the history of the Argentine army. However no one else in my immediate family has served. Then why is it so important to me that I visit these memorials on my trip?

It is important to me because of the Veterans that I have come to know and respect through my work. And by visiting these memorials, I can in some small way honor their service and that of their fallen comrades. But then I also remember sitting on bleachers on just about the hottest and most humid August day on Parris Island watching my nephew become a United States Marine and I have a son who may yet live to serve in our Armed Forces. Even to the contact that I have had with the many, many Veterans currently working at the Department of Veterans Affairs and who must routinely thank callers for the Veteran’s service. I must in turn thank them for their service in whatever way I can.

If you want to learn more about Veteran Benefits Planning, Asset Protection or Medicaid Planning, join us for the Estate Planning Industries Only Practice Enhancement Week in St. Louis, June 1st – 5th. There are still a few seats left so grab them before they're gone. Doors close in one week and we always sell out. If you're even thinking about showing up, click here to register now before seats are gone.

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and Production Coordinator for Lawyers for Wartime Veterans, LLC.