Understanding Veterans Aid & Attendance: How It Can Pay for Long-Term Care

Amber Hinds
7 hours ago
2 min read

Many veterans and their families are unaware that the Veterans Aid & Attendance (A&A) benefit can significantly offset the cost of care—especially for those in assisted living, at home with caregivers, or even in nursing homes paying privately.

Certified Elder Law Attorney Matthew Parker explained that A&A is part of the VA’s Improved Pension program and is designed to help wartime veterans and surviving spouses who require assistance with daily living. While this benefit used to be easier to qualify for, the 2018 rule changes introduced stricter eligibility requirements, similar to Medicaid.

To qualify, veterans must:

Have served at least 90 days of active duty with one day during wartime
Be age 65+ or meet a disability standard
Require help with daily activities or supervision due to cognitive impairment

Financial eligibility includes both assets and income. The current net worth limit is $159,240 (as of 2025), including countable assets and gross annual income. Medical expenses—like caregiver costs, assisted living, and insurance premiums—can reduce countable income, increasing benefit eligibility.

Important 2018 changes include:

A 36-month “look-back” period for asset transfers
Penalties for gifting assets over the threshold, though penalties begin the month after the transfer (unlike Medicaid)
Immediate annuities and certain irrevocable trusts are now considered gifts unless structured carefully

In planning, strategies may include spending down assets, transferring covered resources like the home, or timing asset transfers to outrun penalty periods.

Navigating VA benefits can be complex, so it’s critical to consult with an elder law professional and maintain contact with your local VA representative to ensure compliance with evolving rules.

To watch a recording of this live webinar click here.

Register for our July 16 webinar, Back to Basics - How the Shelter Standard and MMNA Impact Spousal Planning with Stuart Otto, here.