Veterans Administration (VA) Benefits Income

Many times folks are told they need an Income-Only Trust because they are over the ALTCS income limit because they have been approved for or have an income benefit from the Veterans Administration. However, there can be specific portions of VA income that are excluded from the income calculation.

The following types of VA payments are COUNTED in the ALTCS income eligibility test:

  1. Compensation and/or
  2. Pension.

Note: If a portion of the benefit income is considered a spousal apportionment it is also COUNTED, but as part of the spouse’s total GROSS income.

The following types of VA payments are EXCLUDED from the ALTCS income eligibility test:

  1. Aid & Attendance,
  2. Housebound Assistance,
  3. Amounts due to unusual medical expenses,
  4. VA reduced pension,
  5. Clothing allowance, and/or
  6. Caregiver payments.

Is any part of the ALTCS applicant’s total income received from VA?