The Veterans' Benefit Known as "Aid and Attendance", 1113 ALBJ, 74 The Alabama Lawyer 392 (2013)

• Author: William G. Nolan.

The Veterans' Benefit Known as "Aid and Attendance"

Vol. 74 No. 6 Pg. 392

Alabama Bar Lawyer

November, 2013

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0 William G. Nolan.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0There are over 316, 000 wartime veterans living in Alabama, ^[1] including over 160, 000 veterans over the age of 65.^[2] These veterans and the widows of veterans might qualify for a veterans' pension benefit commonly known as "Aid and Attendance." Unfortunately, Veterans Administration studies suggest that only 12 percent of eligible veterans are currently receiving this pension benefit.^[3]

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0It is hoped that this article makes Alabama attorneys aware of this benefit and explains how a veteran (or the widowed spouse) might qualify for the benefit. Most of us know a veteran, either among our clients or our families. Veterans and their spouses comprise 40 percent Social Security benefits. Many of those over age 65 with whom we come in contact every day are either veterans or the widow of one, individuals who might qualify for this benefit and not know they do so.^[4]

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0On June 22, 1944, President Roosevelt signed into law the Serviceman's Readjustment Act of 1944, commonly known as the GI Bill. One of the well-known benefits of the law is the provision whereby a veteran can attend college at the government's expense. By the time the original GI Bill had run its course in 1956, over 7.8 million WWII veterans had received a college education.^[5] The VA didn't force a college education on a veteran, but if the veteran believed that a college education would benefit his/her family, it was available. Similarly, the pension benefit is not forced on anyone, but if the pension will help the veteran and his/her family meet their monthly expenses, it too, is available. Almost every veteran has heard of the GI Bill. Sadly, only a small percentage of veterans are aware of the pension benefit.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0What is the VA Benefit?

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0There are two broad categories of VA disability benefits-compensation, which requires a service-connected disability, and pension, which is non-service-connected. This article will focus on the latter, the non-service connected benefit officially known as "The Improved Pension Benefit, " (hereinafter "IPB"), but commonly referred to as "Aid and Attendance" ("A&A"). This benefit is available to veterans who served at least 90 continuous days of active duty, one of which was during a defined wartime period.^[6] It is also available to the widow of an eligible veteran.^[7]

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0For an eligible wartime veteran with a dependent, the monthly tax-free payment can be as high as S2.054.^[8] For a veteran with no dependents, the monthly benefit can be as high as $1, 732. For a widow of a wartime veteran, the monthly benefit can be as high as $1, 113. This benefit is paid monthly, like Social Security benefits, and is normally direct-deposited into a bank account. No monthly proof of need is required.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0What the VA Benefit Is Not

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0This benefit is not for veterans who are healthy or for veterans who have substantial means at their disposal.⁹ To qualify for this benefit, there are income and resource limitations in addition to medical conditions that must be met.¹⁰ Although not all veterans are eligible, for those who are, the benefit can enable the veteran to live in his home years longer than otherwise, or it can be used to pay for assisted living expenses when necessary. The application process often take months before benefits begin, but benefits are normally paid retroactively. Preparing and filing the claim requires a series of specific steps.¹¹ Some are discussed, infra. The VA has recently instituted a new application process called the "Fully Developed Claim"¹², which was implemented in part because of the serious backlog in pending claims. In our experience, this new process had reduced the claim period from six months to as short as 30 days.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0The VA Benefit: Background

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0The Improved Pension Benefit (IPB) falls under Title 38 of the United States Code and Title 38 of the Code of Federal Regulations.^[13] The purpose of this benefit is to provide financial assistance to veterans and widows who have sacrificed career opportunities to fight for our country.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0It is worthwhile to note that attorneys cannot charge a veteran to assist him/her file a claim for these benefits, a limitation that dates back to the Civil War. Believing that there were a number of lawyers who were waiting to prey on Civil War veterans returning home, Congress limited attorneys fees to only $10, an amount which never increased, and in 1988 even this amount was eliminated. Congress assumed that veterans did not need the assistance of attorneys in the filing of these claims. Because of the concern that attorneys might take advantage of veterans who were eligible for this benefit, Congress limited the fees, effectively eliminating attorney involvement in the process.¹⁴ The limitation on fees still exists today. No one, attorney or otherwise, may charge a fee to assist an eligible veteran or widow file a claim for veterans benefits.¹⁵ An additional limitation is that no one, attorney or not, may provide free assistance to a veteran more than once without becoming accredited.¹⁶

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0In addition to the widespread lack of awareness of this benefit and the limitation for attorney involvement, other barriers exist. Misinformation is a major problem. Many veterans rely on the advice of "experts, " such as their barber or next-door neighbor. Many veterans trust these less-than-informed sources of information and, as a result, forego over $24, 000 in annual benefits. Another barrier is when the veterans claim is initially denied, the veteran simply gives up, assuming that he will never be able to qualify. In reality, the steps necessary to help a veteran qualify for benefits might be as simple as explaining to him how to make a non-exempt asset become an exempt asset. The VA however, is not obligated to assist in this way, though, so many veterans who could qualify for this benefit never receive it. The veteran or his family assumes that just because they did not qualify the first time that they will never qualify. That is not always the case. Persistence and knowledge are often the keys to a successful claim.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0There are only three types of individuals who are authorized to assist a veteran file a claim for benefits: the Veterans Service Officer (VSO), the Accredited Agent and the Accredited Attorney. A VSO is normally an employee of an organization such at the Veterans of Foreign Wars or the American Legion. The State of Alabama employs many excellent VSOs who are available to assist veterans and families with a wide range of benefits, in addition to the IPB, at no charge. Unfortunately, in June 2012, the state reduced the number of VSO offices throughout Alabama from 67 to only 50¹⁷, so the demand on the remaining offices is greater now than ever before. As with any free service...