Veteran's Benefits for Assisted Living

As the parents of baby boomers reach a certain age they often have to make choices about where they will spend their final years. It is not always feasible for them to live at home, and the homes of their children are not always the right place either. Our elderly parents may need more care than we can give them, but they may not be ready for a nursing home. This is where assisted living homes come into play. These homes give the residents the privacy and independence of living in their own apartments, yet they also provide meals in a social, restaurant like atmosphere along with activities to help keep them active as they move into their 90s and even 100s. Costs for living in these facilities can range upward from $2,500 a month depending on the level of care needed. Many facilities have independent living, which is an apartment, meals, and some light housekeeping. The next level is assisted living, where the residents also have minor nursing care and more general living assistance like help showering, etc. The next level is called memory care, and this is where residents who have Alzheimer's Disease or other senility problems live. There is help for these costs for veterans in the form of an assisted living benefit of up to $1,640 per month.

Certified copies of discharge papers are needed to start this process. This is typically the DD214. Find this document and take it to the local Veteran's Office to have it certified. Often these military papers are not available, as the veteran probably was discharged many years ago. In my case, my father was discharged in 1945, but we were able to find his DD214. If you can't find the papers for your elderly relative, contact the VA. They will be able to make copies for you.

In order for the veteran (or veteran's spouse) to be eligible for the assisted living benefits, there must be a medical reason for the vet to be living in an assisted living facility. A doctor must verify that the veteran cannot live alone. In  my father's case, his legal blindness and inability to walk more than a few yards without pain is enough to qualify him for veteran's benefits. He cannot live alone because of falling risks and because he cannot see well enough to cook for himself. He is otherwise very healthy for a 90 year old man and qualifies for a full veteran's grant of $1,640 per month to help with his assisted living bill of $2,786 per month. The doctor completed a report when dad checked into the facility and we attached that report to his application for the benefit.

The Veteran's Administration will review the vet's financial records to determine if he or she can pay for the assisted living facility without any assistance. This means that the veteran's liquid assets must be less than $80,000. Assets like a home, stocks or bonds, etc. can be placed in a family trust with other family members listed as beneficiaries. These assets are not counted as the veteran's assets for the purposes of the assisted living benefit. I do recommend, however, that before you create this trust you discuss it with a trust lawyer who is familiar with Veteran's benefits.

In order for the veteran to receive the benefit for assisted living, he or she must be actually living in an assisted living facility. Since the application process takes from three to six months to complete, you need to be aware that the entire cost for the assisted living facility will have to come out of pocket for at least the first six months. Once the application is approved, a retroactive check will be issued back to the date of application, followed by a monthly benefit check from that point forward. If the veteran moves out of the facility, the VA must be notified and the benefit will then stop. There is an annual review process that must be completed in order for the benefit to continue.

Because this is a very confusing process, that requires a lot of paperwork, it is wise to get some help with the application. There are organizations that will typically charge a small fee (under $500) to complete the application, but the cost is worth it. The application itself is over 14 pages long. It is called the Veteran’s Application for Compensation and/or Pension, VA FORM 21-526, Parts A, B, C, and D. You can find it at this link: Veteran's Application.

Gather all the paperwork you need before you begin the process. This paperwork will include the DD214, and any financial records and medical records for the veteran. You will be working with a government agency, complete with all the bureaucracy typical of agencies like this. Be patient. This process can take months to complete. We started dad's application in September and he received his first check the following March. It is a good idea to have the benefit checks direct deposited into the same account the assisted living bill payments will come out of. That way the money is there every month when the bill is due. It won't pay the entire bill, but it will help.