By Zach Bloxham, JD

Assisting Veterans and their spouses in planning for long-term care is one of the most professionally rewarding and emotionally satisfying experiences the practice of law can provide. This article introduces the five tests a claimant must meet to attain VA eligibility.

The Veterans Asset Protection Trust (VAPT) is a powerful tool that can protect assets while enabling the Grantor to qualify for needs-based VA-pension benefits. The VAPT is a nongrantor trust with the option to include a grantor residence subtrust. Why is the VAPT structured this way?

Happy Veterans Day! In honor of our veterans, let’s take a look at the structure of the Veterans Asset Protection Trust (VAPT). The VAPT is a powerful tool that can protect assets while enabling the grantor to qualify for needs-based pension benefits. There are two sub-trusts within the VAPT – one is a grantor sub-trust and the other is a non-grantor sub-trust. Why is it structured this way? The Veterans Affairs (VA) has a direct line of communication with the IRS. The VA routinely checks the tax returns of pension recipients, to get income information. Because of this, it is best to avoid any “phantom income” from a grantor trust being reported on the grantor’s tax return. This additional reported income may jeopardize eligibility for benefits.