According to a report by the Government Accountability
Office (GAO) detailing a year-long investigation, the pension program is
fraught with abuse. Over 200 financial
planners and other firms have sprouted up across the country specializing in
helping well-off veterans “restructure” their assets to appear indigent and therefore
qualify for tax-free pensions. These
pensions can pay more than $20,000 per year.
To qualify for these pension benefits, the veteran must be
over 65 or permanently disabled, have served during wartime, and fall below the
income threshold – $12,200 for a person with no dependents. However, by hiding assets in trusts or deferred
annuities, these firms are able to get pension benefits for veterans with
hundreds of thousands of dollars in assets.
While this “restructuring” of assets is not illegal under
the current rules, this practice does undermine the very purpose of the pension
system – aiding poor veterans. The GAO
placed partial blame on the VA, calling for greater oversight and changes to
the eligibility rules.
The VA said that it concurred with the GAO’s recommendations
and that the department is drafting new regulations to clarify the types of
asset transfers that might disqualify a pension applicant.
With over a half million veterans receiving pensions, clear
regulations regarding eligibility are not just preferable, they are a necessity.
At Legal Help for Veterans, PLLC we do not handle aid and
attendance claims and do not restructure assets to make veterans qualify. If you have questions, contact Kristina L.
Derro.
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