Veterans and their surviving spouses have access to benefits that can make a real difference in paying for care later in life, but the rules are technical, the forms are unforgiving, and planning moves that work for Medicaid can backfire with the VA. Holmes Law helps families as a Washington veterans benefits attorney, explaining the difference between VA pension and disability compensation, how Aid and Attendance can help pay for care at home or in an assisted living facility or adult family home, how the VA’s net worth and look-back rules work, and what Washington offers veterans through its own programs.
Washington is home to a large veteran population, with major installations such as Joint Base Lewis-McChord and Naval Base Kitsap. The Washington State Department of Veterans Affairs (WDVA) operates four state veterans homes and a network of benefit services, and Washington’s property tax exemption for seniors and people with disabilities includes a specific path for veterans with service-connected disabilities. Michael Holmes is admitted in Washington and works remotely with veterans and families throughout the state. This page is general information, not legal advice for your situation.
Accreditation: Who Can Help With a VA Claim
Federal law regulates who may help a claimant prepare, present, or prosecute a VA benefits claim. Attorneys, claims agents, and representatives of recognized veterans service organizations must be accredited by the VA’s Office of General Counsel under 38 C.F.R. Part 14. Accredited attorneys and agents generally may not charge a fee for helping with an initial claim; fees are permitted only in limited circumstances after an initial decision. Accredited veterans service officers, including county veterans service officers and WDVA and veterans service organization representatives, help with initial claims without charge.
Holmes Law’s role is typically on the planning side: reviewing a family’s finances and legal documents, explaining how a VA claim interacts with Apple Health, trusts, and the home, and preparing the powers of attorney, trusts, and estate planning documents that support a plan. Where a VA claim itself must be filed, a family should work with an accredited representative, and be cautious about anyone who charges to “help” with a pension application or who pitches an annuity or trust as a way to qualify.
Disability Compensation vs. VA Pension
The VA pays two very different monthly benefits, and confusing them causes many mistakes.
Disability compensation
Compensation is paid to veterans with disabilities caused or aggravated by military service. It is based on a disability rating, not on financial need, so income and assets are irrelevant. Surviving spouses of veterans who died from service-connected causes may receive Dependency and Indemnity Compensation (DIC). Veterans whose service-connected conditions leave them needing the help of another person may qualify for special monthly compensation.
VA pension
Pension is a needs-based benefit for wartime veterans who are 65 or older or permanently and totally disabled, and for their surviving spouses (called Survivors Pension). A veteran generally must have served at least 90 days of active duty, with at least one day during a wartime period, and must have a discharge other than dishonorable. Pension eligibility depends on the claimant’s income and net worth, and the amount is reduced dollar for dollar by countable income, after deduction of unreimbursed medical expenses.
Aid and Attendance and Housebound Allowances
Aid and Attendance is an increased pension (or compensation) rate for a veteran or surviving spouse who needs the help of another person with activities of daily living, is bedridden, is a patient in a nursing home due to mental or physical incapacity, or has severely limited eyesight. The Housebound allowance is a separate increased rate for someone substantially confined to the home because of a permanent disability.
For pension claimants, the real value of Aid and Attendance often comes from the medical expense deduction. The cost of care in an adult family home, an assisted living facility, or from a home care agency or paid caregiver can be deducted from income, which may bring countable income low enough to qualify for the maximum rate. The VA has specific rules on which facility and caregiver costs count as medical expenses, and documentation from the provider is essential.
Net Worth and the 36-Month Look-Back Since October 18, 2018
Since October 18, 2018, VA pension eligibility has been governed by a bright-line net worth limit and a look-back rule, found at 38 C.F.R. §§ 3.274 through 3.276.
- Net worth. The VA counts the claimant’s assets plus annual income against a single net worth limit that is adjusted each year. The claimant’s primary residence, including a lot area generally up to two acres, is excluded, as are personal effects and a vehicle. Current figures are published by the VA.
- Look-back. The VA reviews asset transfers made in the 36 months before the pension application. Transferring assets for less than fair market value to reduce net worth below the limit can create a penalty period of up to five years.
- Penalty calculation. The penalty is calculated by dividing the amount that pushed net worth over the limit by a monthly penalty rate the VA publishes.
Because the VA’s look-back is 36 months and Washington’s Apple Health look-back is 60 months, a transfer that solves a VA problem can create a Medicaid penalty later. Families considering both programs need a plan that takes both into account; see WA Medicaid planning.
Coordinating VA Benefits With Apple Health and the WA Cares Fund
VA pension and Aid and Attendance can help families pay for care in the private-pay phase, but they interact with other programs. When a veteran or surviving spouse receiving pension enters a Medicaid-covered nursing facility, the pension is generally reduced to a small monthly amount. Aid and Attendance paid to a Medicaid recipient may be excluded from income in some circumstances and counted in others, depending on the program. The WA Cares Fund benefit, for eligible Washington workers, adds another funding source; the program allows veterans with a service-connected disability rating of 70 percent or higher to apply for an exemption from WA Cares premiums, which would also mean no WA Cares benefit. The WA long-term care page explains how these sources fit together.
Washington State Veterans Homes
The Washington State Department of Veterans Affairs operates four state veterans homes:
- The Washington Soldiers Home in Orting.
- The Washington Veterans Home in Port Orchard (Retsil).
- The Spokane Veterans Home.
- The Walla Walla Veterans Home.
According to WDVA, applicants must have served in any branch of the U.S. Armed Forces, including the National Guard, with an honorable discharge or current eligibility for federal VA benefits, and must reside in Washington. The homes also admit spouses of current residents, widows and widowers of eligible veterans, and Gold Star parents. The homes provide skilled nursing care and, in some cases, other levels of care. Residents typically contribute toward their care from their income, and Apple Health, Medicare, and VA per diem payments may also be involved. Admission paperwork should be reviewed like any facility contract. Because space can be limited, families should contact the home early, ask about waiting lists and the level of care available at each location, and gather the veteran’s DD-214 and financial information before applying. A home closer to family may matter more than any other factor for a long stay.
Washington Property Tax Relief for Veterans
Washington’s property tax exemption program for senior citizens and people with disabilities, RCW 84.36.381, reduces or eliminates certain property taxes on the principal residence for qualifying homeowners with limited household income. A claimant generally qualifies by being 61 or older, by being retired from regular gainful employment because of a disability, or by being a veteran who receives VA compensation at a combined service-connected evaluation rating of 40 percent or higher, or at the total disability rate for a service-connected disability. Income thresholds are set by county and adjusted periodically, and the exemption is administered by the county assessor. A surviving spouse or registered domestic partner who is 57 or older may continue the exemption in some circumstances.
Washington also offers a property tax deferral program for qualifying seniors and people with disabilities, and many counties provide additional assistance. The assessor’s office in the county where the home is located has current forms and income limits.
Other Washington Benefits for Veterans
Beyond the veterans homes and property tax exemption, WDVA and Washington counties provide or coordinate:
- Benefit claim assistance through accredited veterans service officers, in partnership with counties and veterans service organizations.
- County veterans assistance programs funded under chapter 73.08 RCW, which can provide emergency help with needs such as rent, utilities, and food for eligible veterans and families.
- Burial in the Washington State Veterans Cemetery in Medical Lake, near Spokane, for eligible veterans and family members.
- State hiring preferences and other benefits administered through state agencies.
Estate Planning for Veterans and Surviving Spouses
VA benefits end at death and do not pass through an estate, but the planning around them matters. A veteran receiving Aid and Attendance may need a plan that avoids leaving assets outright to a surviving spouse who will need pension or Apple Health; a testamentary trust or a WA special needs trust may be appropriate for a disabled beneficiary. Veterans should also keep discharge papers (DD-214) with their estate documents, name an agent under a durable power of attorney who can deal with the VA, and consider whether a VA fiduciary might be appointed if they become unable to manage benefits. For the broader picture, see Washington estate planning and WA irrevocable trusts.
Common Mistakes in VA Pension Planning
Families often run into trouble with VA pension claims for predictable reasons:
- Transferring assets without considering the look-back. A gift made to reduce net worth can trigger a VA penalty and a longer Apple Health penalty.
- Buying products marketed as “VA planning.” Annuities and trusts sold to qualify for pension may be illiquid, may not work as promised, and may create Medicaid penalties. The VA’s 2018 rules were written in part to address these practices.
- Paying someone to file the claim. Charging a fee to prepare an initial pension claim is generally prohibited for accredited representatives, and unaccredited assistance is not permitted.
- Missing medical expense documentation. Aid and Attendance claims often turn on the care provider’s statement and proof of recurring payments.
- Forgetting the effective date. The date the VA receives a claim, or an intent to file, can affect when benefits start, so starting the process promptly matters.
Surviving Spouses and Dependency Benefits
Surviving spouses are often unaware of benefits they may be entitled to. A surviving spouse of a wartime veteran may qualify for Survivors Pension, including Aid and Attendance, if the marriage and income and net worth requirements are met. A surviving spouse of a veteran who died of a service-connected condition, or who had been rated totally disabled for a qualifying period before death, may qualify for Dependency and Indemnity Compensation, which is not needs-based. Surviving spouses may also be eligible for burial benefits, CHAMPVA health coverage in some cases, and admission to a Washington state veterans home.
Working With a Washington Veterans Benefits Attorney
A Washington veterans benefits attorney at Holmes Law looks at the whole picture: whether pension or compensation is the right benefit to pursue, how a claim will affect Apple Health eligibility, whether the home and other assets are titled correctly, and whether powers of attorney and estate planning documents are current. Where a claim must be filed or appealed, Holmes Law can coordinate with an accredited representative and help the family gather the records the VA will require, including the DD-214, marriage and death certificates, medical records, and care provider statements.
Frequently Asked Questions
What is the difference between VA pension and VA compensation?
Compensation pays for service-connected disabilities and does not depend on income or assets. Pension is a needs-based benefit for wartime veterans who are 65 or older or permanently and totally disabled, and for surviving spouses, and it depends on income and net worth.
Does the VA have a look-back period?
Yes. Since October 18, 2018, the VA reviews transfers made in the 36 months before a pension application, and transfers that reduced net worth below the limit can result in a penalty period of up to five years.
Can a surviving spouse get Aid and Attendance?
Yes. A surviving spouse who qualifies for Survivors Pension and needs the help of another person with daily activities, or who is in a nursing home, can receive the Aid and Attendance rate.
Who can live in a Washington state veterans home?
According to WDVA, eligible veterans who reside in Washington, spouses of current residents, widows and widowers of eligible veterans, and Gold Star parents may apply.
Do disabled veterans get a property tax break in Washington?
Veterans receiving VA compensation at a combined service-connected rating of 40 percent or higher, or at the total disability rate, may qualify for the RCW 84.36.381 exemption if they also meet the income requirements.
Speak With a Washington Veterans Benefits Attorney
VA pension, Apple Health, and estate planning each have their own rules, and they need to work together. Holmes Law can help Washington veterans and families plan for care while protecting what they can. Visit the Washington elder law hub, or contact Holmes Law to speak with Michael Holmes.