Texas is home to one of the largest veteran populations in the country, and many of those veterans and their surviving spouses are now facing the cost of long-term care. Federal VA benefits, especially pension with Aid and Attendance, can make a real difference in paying for home care, assisted living, or a nursing facility. Texas adds its own benefits, including state veterans homes, generous property tax exemptions for disabled veterans, and education benefits for families. A Texas veterans benefits attorney helps you understand which benefits you may qualify for, how VA rules interact with Texas Medicaid, and how to avoid costly mistakes in the application process.
Holmes Law is the practice of Michael Holmes, an attorney licensed in Texas who works with veterans and families remotely throughout the state. This page explains the difference between VA pension and compensation, how the Aid and Attendance benefit works, the VA’s net worth and look-back rules, accreditation requirements, and the Texas-specific benefits available through the Texas Veterans Commission and the Texas Veterans Land Board. It is general information within Holmes Law’s Texas elder law practice, and it is not a substitute for advice about your own record of service or finances.
VA Pension Versus VA Disability Compensation
People often use “VA benefits” to mean two very different programs.
Disability Compensation
Disability compensation is paid to veterans with disabilities that were caused or aggravated by military service. It is not based on financial need. The amount depends on the combined disability rating and the number of dependents. Veterans with severe disabilities may qualify for special monthly compensation, including an additional amount for aid and attendance. The PACT Act of 2022 expanded presumptive service connection for many veterans exposed to burn pits, Agent Orange, and other toxic substances, and older veterans who were previously denied may now qualify. Surviving spouses of veterans who died from service-connected conditions may receive Dependency and Indemnity Compensation (DIC).
Veterans Pension
Veterans pension is a needs-based benefit for wartime veterans with limited income and net worth who are 65 or older or who are permanently and totally disabled. The disability does not have to be connected to service. Generally, the veteran must have served at least 90 days of active duty with at least one day during a recognized wartime period, and must have been discharged under conditions other than dishonorable. Longer minimum service requirements apply to many veterans who entered service after September 7, 1980. Surviving spouses of wartime veterans may qualify for survivors pension, which is also needs-based.
Aid and Attendance and Housebound Benefits
Pension can be increased by one of two enhancements:
- Aid and Attendance, for a veteran or surviving spouse who needs another person’s help with activities of daily living such as bathing, dressing, eating, or toileting, who is bedridden, who is a patient in a nursing facility because of mental or physical incapacity, or who meets certain vision criteria.
- Housebound, for a person with a permanent disability that substantially confines him or her to the home.
For pension purposes, the VA calculates countable income after deducting unreimbursed medical expenses, which can include the ongoing cost of in-home care, assisted living, and nursing facility care when the care is medically needed. Because long-term care costs are high, many Texans with incomes that seem too high to qualify can become eligible once care costs are deducted. Getting the medical expense documentation right is often the key to an approval.
Care provided by family members can count as well. When a veteran pays an adult child or other relative to provide in-home care, those payments may qualify as a deductible medical expense if the care is medically necessary and properly documented. A written caregiver agreement, a physician’s statement about the need for care, and consistent records of payment help the VA see the expense for what it is. The same written agreement can also help avoid a transfer penalty if the veteran later applies for Texas Medicaid.
The VA Net Worth Limit and 36-Month Look-Back
Since October 18, 2018, the VA has used a bright-line net worth limit for pension. Net worth is the claimant’s assets plus annual income. The primary residence, including a lot area generally up to two acres, is excluded, along with a vehicle and household goods. The limit is adjusted annually and is tied to the maximum community spouse resource allowance under Medicaid.
The same 2018 rules introduced a 36-month look-back period. If a claimant transfers assets for less than fair market value during the three years before applying, and the transfer would have pushed net worth above the limit, the VA imposes a penalty period of up to five years during which pension is not payable. Transfers to a trust for a child who is incapable of self-support are an important exception.
These VA rules are not the same as Texas Medicaid’s rules. Texas Medicaid uses a five-year look-back and a different penalty calculation, while the VA’s look-back is three years. A transfer strategy designed for one program can create a penalty under the other, so veterans who may need Medicaid in the future should plan for both. See Texas Medicaid planning.
Accreditation: Who Can Help With a VA Claim
Federal law regulates who may help with VA claims. Under 38 U.S.C. Section 5904 and the VA’s regulations at 38 C.F.R. Part 14, only VA-accredited attorneys, accredited claims agents, and representatives of recognized veterans service organizations may prepare, present, and prosecute VA benefit claims. Accredited representatives generally may not charge a fee for helping with an initial claim. Fees are permitted only in limited circumstances after the VA has issued a decision on the claim.
Be cautious about anyone who offers to help “qualify” a veteran for pension for a fee while also selling annuities, trusts, or other financial products. Those arrangements can create VA penalties, Texas Medicaid penalties, or both. The Texas Veterans Commission and county veterans service officers provide free claims assistance, and Holmes Law can help with the related legal planning, such as powers of attorney, trusts, and Medicaid coordination.
Texas Veterans Commission and County Veterans Service Officers
The Texas Veterans Commission (TVC) is the state agency charged with helping veterans and their families obtain benefits. Its claims counselors, located across Texas, help veterans and survivors file for compensation, pension, DIC, and related benefits at no charge. TVC also administers the Fund for Veterans’ Assistance, which makes grants to local organizations that provide services such as home modifications, transportation, and financial assistance, and it offers employment and education services and a veterans mental health program.
Most Texas counties also have a Veterans County Service Officer under Chapter 434 of the Texas Government Code. These local officers are often the most convenient starting point for obtaining discharge papers (DD-214), filing claims, and connecting with local resources.
Texas State Veterans Homes
The Texas Veterans Land Board operates the Texas State Veterans Homes, which provide long-term skilled nursing care, and in many homes memory care, for eligible veterans. Spouses of eligible veterans and Gold Star parents may also be admitted. The homes are located across the state and are privately operated under contract with the Land Board. They accept Medicare, Medicaid, private insurance, and private pay, and they receive a VA per diem that helps reduce cost to residents. Admission requires meeting medical need criteria and service requirements, and availability varies by location. For a comparison with other care settings and payment sources, see Texas long-term care.
Families considering a veterans home should plan early. Admission paperwork, proof of service, and medical documentation take time to assemble, and a home near family may have a waiting list. It also helps to understand how the resident’s income, VA benefits, and any Texas Medicaid eligibility will work together to pay the monthly charge, since the same spend-down and spousal protection rules that apply in other nursing facilities generally apply in a state veterans home that participates in Medicaid.
The Veterans Land Board also operates the Texas State Veterans Cemeteries and offers land loans, home loans, and home improvement loans to eligible Texas veterans.
Texas Property Tax Exemptions for Veterans
Texas has no state income tax, so property tax relief is one of the most valuable state benefits for veterans. The Texas Tax Code provides several exemptions, administered by the county appraisal district:
- Partial exemption for disabled veterans. Section 11.22 provides an exemption from part of the assessed value of one property, scaled to the veteran’s VA disability rating, for veterans with a rating of at least 10 percent. Surviving spouses and children may qualify in certain circumstances.
- Total homestead exemption for 100 percent disabled veterans. Section 11.131 exempts the entire value of the residence homestead of a veteran who receives 100 percent disability compensation and has a rating of 100 percent disabled or individual unemployability. A surviving spouse who has not remarried may continue the exemption on the same or a later homestead, subject to statutory conditions.
- Donated residence homesteads. Section 11.132 provides a partial exemption for a partially disabled veteran whose homestead was donated by a charitable organization.
- Surviving spouses of service members killed in the line of duty. Section 11.133 provides a total homestead exemption for an unremarried surviving spouse of a member of the armed services killed in the line of duty.
These exemptions must be applied for with the appraisal district, and the documentation, especially the VA rating letter, must be current. They also interact with other homestead exemptions and with the over-65 tax ceiling, so it is worth confirming how they apply to your property. Title and homestead issues can also affect Texas real estate transactions such as sales or refinancing.
Other Texas Benefits for Veterans and Families
- Hazlewood Act. Under Section 54.341 of the Texas Education Code, eligible Texas veterans may receive an exemption from tuition and most fees at Texas public colleges and universities for up to 150 credit hours. Unused hours may be transferred to an eligible child under the Legacy Program, and certain spouses and dependent children of veterans who died or became severely disabled in service also qualify.
- Veteran designation. Texas driver licenses and identification cards can include a veteran designation, and specialty license plates are available.
- State employment preference for qualified veterans and certain surviving spouses and orphans.
Coordinating VA Benefits With Your Estate Plan
VA benefits work best as part of an overall plan. A veteran’s durable power of attorney should give the agent authority to deal with the VA and to make the kinds of transfers that pension or Medicaid planning may require. Keep in mind that the VA may appoint a VA fiduciary for a beneficiary it rates as unable to manage benefits, regardless of any power of attorney. For veterans with a disabled child, a trust for a child incapable of self-support or a Texas special needs trust may protect both VA and other benefits. And a Texas will or trust should address the veteran’s wishes for burial in a national or Texas state veterans cemetery.
How a Texas Veterans Benefits Attorney Helps
Michael Holmes helps Texas veterans and surviving spouses with the legal planning around VA benefits, including evaluating whether pension or compensation is the better path, structuring assets with the 36-month VA look-back and the five-year Medicaid look-back in mind, preparing powers of attorney and trusts, and coordinating with the Texas Veterans Commission or a county veterans service officer for claim filing. The claim itself is usually filed through an accredited representative, and Holmes Law does not charge fees for preparing an initial VA claim. Holmes Law is a remote practice serving veterans throughout Texas by phone and video.
Frequently Asked Questions
Does my disability have to be service-connected to get VA pension?
No. Pension is for wartime veterans who are 65 or older or permanently and totally disabled and who meet the net worth and income requirements. The disability does not need to be connected to service.
Can a surviving spouse receive Aid and Attendance?
Yes. A surviving spouse of a wartime veteran may qualify for survivors pension, and the Aid and Attendance enhancement can be added if the spouse meets the care-need criteria.
Does the VA have a look-back period like Texas Medicaid?
Yes, but it is different. Since October 18, 2018, the VA looks back 36 months for transfers that reduced net worth below the limit, with a penalty of up to five years. Texas Medicaid looks back five years.
Who is eligible for a Texas State Veterans Home?
Eligible veterans with qualifying service who meet medical need requirements, as well as certain spouses and Gold Star parents. The Texas Veterans Land Board sets admission criteria.
Do 100 percent disabled veterans pay property taxes in Texas?
A veteran who receives 100 percent disability compensation and is rated 100 percent disabled or individually unemployable is entitled to a total exemption on the residence homestead under Tax Code Section 11.131. Other property and other veterans may qualify for partial exemptions.
Can someone charge me to file a VA pension claim?
Accredited representatives generally cannot charge for an initial claim. Free help is available through the Texas Veterans Commission, county veterans service officers, and veterans service organizations.
Speak With a Texas Veterans Benefits Attorney
VA and Texas benefits can make long-term care far more affordable, but only if the planning is done carefully. Holmes Law can help you protect your eligibility for both VA benefits and Texas Medicaid. Contact Holmes Law to schedule a remote consultation with Michael Holmes.