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Improved VA Disability Pension Benefit With Aid and Attendance Entitlement
By Greg Cook
Attention WWII and Korean War Veterans - The VA will provide you financial assistance to help you or the widowed surviving spouse pay for long-term care.
This financial assistance provides needed money to help these elderly war-time veterans (and their widowed surviving spouse) receive in-home care or offset the costs of an assisted living facility.
And the best part, you don't need to use official VA care or facilities. This financial assistance can be used to pay independent home care agencies and non-government run assisted living facilities. Many families also can get this VA financial assistance to pay a family member to provide the care.
This little-known veterans' benefit is commonly called the "Aid and Attendance" benefit. It is officially called an "Improved Disability Pension Benefit with Aid and Attendance Entitlement" that provides a tax-free monthly amount up to $1,644 for a veteran or $1,949 for a veteran and spouse.
Widowed surviving spouses who have not re-married are eligible for this same benefit but by a different name. The official name of the surviving spouse benefit is "Improved Death Pension Benefit with Aid and Attendance Entitlement". This benefit also provides a tax-free benefit equal to $1,057 monthly.
This "improved" VA disability pension benefit can be used to pay for in-home care, assisted living facility costs or nursing home care. In addition other qualified uses include medical expenses, prescription drugs, incontinence supplies and more.
Five Steps of Qualification
1. To qualify for time of service, the WWII or Korean veteran must have served at least 90 days of active duty with at least one day of service between December 7, 1941 and December 31, 1946 for WWII or between June 27, 1950 and January 31, 1955 for the Korean War.
It does not matter if the veteran's active duty was stateside or overseas. Discharge from military service also must not have been under dishonorably conditions.
Note: Surviving spouses who remarried a non-eligible individual or whose marriage to the veteran ended in divorce are not eligible.
2. To qualify physically, the veteran (or eligible surviving spouse) must be age 65 or older (to not have to prove they can no longer work) and need help with basic activities of daily living tasks such as eating, dressing, grooming, proper hygiene, bathing or going to the bathroom.
Being blind or use of a wheelchair for mobility also physically qualifies the claimant. The claimant must also be no longer able to safely drive to be considered home-bound.
Physical qualifications should be documented by your private physician. You do not have to use or visit a VA doctor.
3. To qualify financially, the veteran (or eligible surviving spouse) must have limited assets (typically under $80,000) excluding the primary home and a single vehicle. Note: The claimant cannot be driving or they will be ineligible for the benefit.
The amount of benefit that the claimant can receive is based on a two-step calculation.
a. Add up all annual income from social security, retirement pensions, interest, dividends, annuities, etc.
b. Subtract from this income total the annual recurring out-of-pocket medical and prescription costs, the cost of private supplemental health care insurance, any long-term care insurance, and long-term care expenses from in-home care or an assisted living facility.
The resulting amount is called the "adjusted countable household income". This amount is then compared to the maximum VA disability pension benefit. The difference is the benefit amount you will receive - paid in 12 equal payments.
4. The maximum VA disability pension benefit for 2009 is as follows:
Single or widowed veteran = $19,736 paid $1,644 monthly
Veteran with a dependent (typically spouse) = $23,396 paid $1,949 monthly
Un-remarried widowed surviving spouse = $12,681 paid $1,057 monthly
Let's look at an example:
This means that Sam now has $644 in income each month after paying his qualified expenses instead of having to take $1,000 from savings each month for his care.
5. How to Apply
To learn more or to understand how to successfully apply for the Aid and Attendance benefit from the VA, visit www dot VeteransCareAdvisors dot com. The Aid and Attendance Handbook will walk you through the process and help you better understand the paper work, required documentation and what to expect during the claim processing.
This financial assistance provides needed money to help these elderly war-time veterans (and their widowed surviving spouse) receive in-home care or offset the costs of an assisted living facility.
And the best part, you don't need to use official VA care or facilities. This financial assistance can be used to pay independent home care agencies and non-government run assisted living facilities. Many families also can get this VA financial assistance to pay a family member to provide the care.
This little-known veterans' benefit is commonly called the "Aid and Attendance" benefit. It is officially called an "Improved Disability Pension Benefit with Aid and Attendance Entitlement" that provides a tax-free monthly amount up to $1,644 for a veteran or $1,949 for a veteran and spouse.
Widowed surviving spouses who have not re-married are eligible for this same benefit but by a different name. The official name of the surviving spouse benefit is "Improved Death Pension Benefit with Aid and Attendance Entitlement". This benefit also provides a tax-free benefit equal to $1,057 monthly.
This "improved" VA disability pension benefit can be used to pay for in-home care, assisted living facility costs or nursing home care. In addition other qualified uses include medical expenses, prescription drugs, incontinence supplies and more.
Five Steps of Qualification
1. To qualify for time of service, the WWII or Korean veteran must have served at least 90 days of active duty with at least one day of service between December 7, 1941 and December 31, 1946 for WWII or between June 27, 1950 and January 31, 1955 for the Korean War.
It does not matter if the veteran's active duty was stateside or overseas. Discharge from military service also must not have been under dishonorably conditions.
Note: Surviving spouses who remarried a non-eligible individual or whose marriage to the veteran ended in divorce are not eligible.
2. To qualify physically, the veteran (or eligible surviving spouse) must be age 65 or older (to not have to prove they can no longer work) and need help with basic activities of daily living tasks such as eating, dressing, grooming, proper hygiene, bathing or going to the bathroom.
Being blind or use of a wheelchair for mobility also physically qualifies the claimant. The claimant must also be no longer able to safely drive to be considered home-bound.
Physical qualifications should be documented by your private physician. You do not have to use or visit a VA doctor.
3. To qualify financially, the veteran (or eligible surviving spouse) must have limited assets (typically under $80,000) excluding the primary home and a single vehicle. Note: The claimant cannot be driving or they will be ineligible for the benefit.
The amount of benefit that the claimant can receive is based on a two-step calculation.
a. Add up all annual income from social security, retirement pensions, interest, dividends, annuities, etc.
b. Subtract from this income total the annual recurring out-of-pocket medical and prescription costs, the cost of private supplemental health care insurance, any long-term care insurance, and long-term care expenses from in-home care or an assisted living facility.
The resulting amount is called the "adjusted countable household income". This amount is then compared to the maximum VA disability pension benefit. The difference is the benefit amount you will receive - paid in 12 equal payments.
4. The maximum VA disability pension benefit for 2009 is as follows:
Single or widowed veteran = $19,736 paid $1,644 monthly
Veteran with a dependent (typically spouse) = $23,396 paid $1,949 monthly
Un-remarried widowed surviving spouse = $12,681 paid $1,057 monthly
Let's look at an example:
- Sam is an honorably discharged Korean War veteran who lost his wife 6 months ago.
- He suffers from dementia and can no longer drive or live alone. His family has moved him to the Great Home Assisted Living facility where many of his friends also now live.
- His adjusted countable household income is a negative $-1,000 (Social security and a small pension from his work at the Tool & Die Company less his qualified medical costs of assisted living, prescriptions and medical insurance premium).
- He has less than $10,000 in savings and after the reverse mortgage is paid off from the sale of his home he will net $50,000.
This means that Sam now has $644 in income each month after paying his qualified expenses instead of having to take $1,000 from savings each month for his care.
5. How to Apply
To learn more or to understand how to successfully apply for the Aid and Attendance benefit from the VA, visit www dot VeteransCareAdvisors dot com. The Aid and Attendance Handbook will walk you through the process and help you better understand the paper work, required documentation and what to expect during the claim processing.
Today, hundreds of thousands of eligible individuals either don't know about this VA non-service connected disability pension benefit, or don't think they can qualify for it. Are you missing out on thousands of financial assistance from the VA?
Greg Cook is a consultant with extensive experience dealing with governmental agencies in the financial world and with major non-profit organizations. He has helped hundreds of senior citizens successfully navigate the long term care industry.
He is a senior advocate, geriatric care manager and a Certified Senior Advisor. To learn more about how to qualify for up to $1,843 per month in VA financial assistance, visit Mr. Cook's website; Veterans Care Advisors dot com.
Greg Cook is a consultant with extensive experience dealing with governmental agencies in the financial world and with major non-profit organizations. He has helped hundreds of senior citizens successfully navigate the long term care industry.
He is a senior advocate, geriatric care manager and a Certified Senior Advisor. To learn more about how to qualify for up to $1,843 per month in VA financial assistance, visit Mr. Cook's website; Veterans Care Advisors dot com.
Article Source: http://EzineArticles.com/?expert=Greg_Cook
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What to Look For When Comparing Disability Insurance Company Ratings
By David Wilkenson
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What to Look For When Comparing Disability Insurance Company Ratings
By David Wilkenson
Rating disability insurance companies is important to ensure that you are only investing in the best policies that can back you up financially. There are certain points to follow in order for you to assess and compare the reliability and performance of the insurance company.
When you are bombarded with a variety of benefit options, business insurance promises, and lifetime pension opportunities, use these features to eliminate other companies that do not serve the best of your financial and professional interests.
Disability is a boon, especially to starting business owners and beginning employees. Your presence is virtually the most important factor in keeping the business running and making a living; and without good and qualified disability insurance, your chances of returning to work may be slim. Some features will be helpful in rating disability insurance companies, in order for you to choose only the best, in accordance to your needs and preferences, during periods of disability.
Most companies are primarily rated on their financial strength, which pertains to the funding that allows compensation to policyholders. Financial strength is the foundation of the policy, so you need to know how much funds are allocated for certain disability benefits and quote preferences. You would not want to keep paying for a premium if you know financial security is compromised or jeopardized because of the company's lack of funding.
Health insurance rating analysts are available to help you determine exactly the financial strength of your chosen insurance company. Analysts also have independent companies; and all you need to do is write a letter and pay a certain fee and the rating company will deliver an insurance rating system that depicts essential information about your disability insurance company, to help you know its strengths and weaknesses.
Policy benefits are also included in most insurance rating systems and these show you the current options you have with your existing disability insurance company and rate it against other companies, which, in turn, will leave you only with the best offers to avail of. Provisions governing the whole insurance policy are also indicated, which states updates and better options and preferences in benefits and waiting periods, tax exclusions and advantages, and many more.
There are guidelines on how to rate disability insurance companies, based on financial strengths, insurance benefits, policy specifications, and time periods. Some companies may claim to have scored high in every feature but, the truth is, you always get what you pay for in insurance.
You may have paid a lesser premium with more benefits without knowing. Benefit periods may have been prolonged or that benefits were made taxable, so make sure that you have checked every feature as you plan your disability quote.
Most top-rated disability insurance companies are excellent when it comes to financial strengths and provide immediate reimbursements. They rank high in their ability to pay under insurance policies and agreements.
Other special features are their excellent skills in handling senior policies, investment strategies, business ventures and operations, and underwriting commitments. Services should be very satisfactory and they all should simply have the resources to deal with the most severe economic conditions with less risks overall. These added features are determinant in guiding you in boosting your disability insurance company ratings.
When you are bombarded with a variety of benefit options, business insurance promises, and lifetime pension opportunities, use these features to eliminate other companies that do not serve the best of your financial and professional interests.
Disability is a boon, especially to starting business owners and beginning employees. Your presence is virtually the most important factor in keeping the business running and making a living; and without good and qualified disability insurance, your chances of returning to work may be slim. Some features will be helpful in rating disability insurance companies, in order for you to choose only the best, in accordance to your needs and preferences, during periods of disability.
Most companies are primarily rated on their financial strength, which pertains to the funding that allows compensation to policyholders. Financial strength is the foundation of the policy, so you need to know how much funds are allocated for certain disability benefits and quote preferences. You would not want to keep paying for a premium if you know financial security is compromised or jeopardized because of the company's lack of funding.
Health insurance rating analysts are available to help you determine exactly the financial strength of your chosen insurance company. Analysts also have independent companies; and all you need to do is write a letter and pay a certain fee and the rating company will deliver an insurance rating system that depicts essential information about your disability insurance company, to help you know its strengths and weaknesses.
Policy benefits are also included in most insurance rating systems and these show you the current options you have with your existing disability insurance company and rate it against other companies, which, in turn, will leave you only with the best offers to avail of. Provisions governing the whole insurance policy are also indicated, which states updates and better options and preferences in benefits and waiting periods, tax exclusions and advantages, and many more.
There are guidelines on how to rate disability insurance companies, based on financial strengths, insurance benefits, policy specifications, and time periods. Some companies may claim to have scored high in every feature but, the truth is, you always get what you pay for in insurance.
You may have paid a lesser premium with more benefits without knowing. Benefit periods may have been prolonged or that benefits were made taxable, so make sure that you have checked every feature as you plan your disability quote.
Most top-rated disability insurance companies are excellent when it comes to financial strengths and provide immediate reimbursements. They rank high in their ability to pay under insurance policies and agreements.
Other special features are their excellent skills in handling senior policies, investment strategies, business ventures and operations, and underwriting commitments. Services should be very satisfactory and they all should simply have the resources to deal with the most severe economic conditions with less risks overall. These added features are determinant in guiding you in boosting your disability insurance company ratings.
David Wilkenson is a disability insurance specialist and contributes to WealthProtector.NET, a website that offers information on getting the best long term disability insurance quote.
Article Source: http://EzineArticles.com/?expert=David_Wilkenson
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Treatment of Sickness and Injury Benefits on Your Tax Return
By Chintamani Abhyankar
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Treatment of Sickness and Injury Benefits on Your Tax Return
By Chintamani Abhyankar
The following guidelines will help you in deciding the tax treatment on sickness and injury benefits:
You are entitled to a tax credit if you are permanently and totally disabled at the time of your retirement.
If you receive money for personal injury or sickness because of an accident on a health plan paid by your employer, you need to report such income on your tax return. However, if you and your employer pay for the plan jointly, only the amount received by you on the basis of contribution from your employer will be treated as your income. If you receive any money by way of a reimbursement for medical expenses incurred by you after the plan was established, that money is not included in your income.
If you paid the entire cost of such an insurance plan, the amounts received by you under such plan are not to be included on your tax return.
Cafeteria plans -if you are covered by a cafeteria plan, and the amount of insurance premium was not included in your income, IRS assumes that you have not paid for the premiums and so you have to include the benefits you receive out of such plan in your income. However if the amount of premiums was already included in your income, you are assumed to have paid the premiums and consequently the benefits are not taxable.
If you receive money from a retirement or profit sharing plan, which is not providing for a disability retirement, it cannot be treated as disability pension. Such payment must be reported as annuity or pension. It has to be included in your income in the year of its receipt.
If you retire on disability, any payment which you receive towards accrued annual leave is regarded as a salary payment and not a disability payment.
When you retire on disability, the disability pension you receive under a plan which is paid by your employer is treated as your salary Up to the time you reach minimum retirement age. Once you reach minimum retirement age, the payments received are taxable as a pension on annuity.
Various military and government disability pensions are not taxable. The payments relating to service connected disability are excluded from your income. If you receive a disability pension on the basis of years of service, that has to be included in your income. However if it is a service connected disability, it is not to be included in income. Similarly, disability benefits received from the VA are not to be included in your income.
A claim for the refund or credit must be filed within three years from the date return was filed. However, if you are in receipt of a retroactive service connected disability rating determination, the limitation is extended by one more year from the date of determination. So if you retired in 2004 and continue to receive a pension which was based on your years of service and later on July 10, 2008 you receive determination retroactive to 2004, you can claim a refund for the taxes paid on your pension for the years 2005, 2006 and 2007. For this extended period of one year applies to all the claims for refund filed after June 17, 2008.
If you are in receipt of any payment for injuries resulting directly from a terrorist or a military action, such payments are not included in your income.
Amounts received from long term care insurance contracts are not included on your tax return as your income. You must file form 8853 with your return to claim such exclusion.
The money received as workers' compensation under the workers' compensation act is fully excluded on your tax return. However if you return to work later, the payments you receive by way of salary will be taxable.
You are entitled to a tax credit if you are permanently and totally disabled at the time of your retirement.
If you receive money for personal injury or sickness because of an accident on a health plan paid by your employer, you need to report such income on your tax return. However, if you and your employer pay for the plan jointly, only the amount received by you on the basis of contribution from your employer will be treated as your income. If you receive any money by way of a reimbursement for medical expenses incurred by you after the plan was established, that money is not included in your income.
If you paid the entire cost of such an insurance plan, the amounts received by you under such plan are not to be included on your tax return.
Cafeteria plans -if you are covered by a cafeteria plan, and the amount of insurance premium was not included in your income, IRS assumes that you have not paid for the premiums and so you have to include the benefits you receive out of such plan in your income. However if the amount of premiums was already included in your income, you are assumed to have paid the premiums and consequently the benefits are not taxable.
If you receive money from a retirement or profit sharing plan, which is not providing for a disability retirement, it cannot be treated as disability pension. Such payment must be reported as annuity or pension. It has to be included in your income in the year of its receipt.
If you retire on disability, any payment which you receive towards accrued annual leave is regarded as a salary payment and not a disability payment.
When you retire on disability, the disability pension you receive under a plan which is paid by your employer is treated as your salary Up to the time you reach minimum retirement age. Once you reach minimum retirement age, the payments received are taxable as a pension on annuity.
Various military and government disability pensions are not taxable. The payments relating to service connected disability are excluded from your income. If you receive a disability pension on the basis of years of service, that has to be included in your income. However if it is a service connected disability, it is not to be included in income. Similarly, disability benefits received from the VA are not to be included in your income.
A claim for the refund or credit must be filed within three years from the date return was filed. However, if you are in receipt of a retroactive service connected disability rating determination, the limitation is extended by one more year from the date of determination. So if you retired in 2004 and continue to receive a pension which was based on your years of service and later on July 10, 2008 you receive determination retroactive to 2004, you can claim a refund for the taxes paid on your pension for the years 2005, 2006 and 2007. For this extended period of one year applies to all the claims for refund filed after June 17, 2008.
If you are in receipt of any payment for injuries resulting directly from a terrorist or a military action, such payments are not included in your income.
Amounts received from long term care insurance contracts are not included on your tax return as your income. You must file form 8853 with your return to claim such exclusion.
The money received as workers' compensation under the workers' compensation act is fully excluded on your tax return. However if you return to work later, the payments you receive by way of salary will be taxable.
There are all sorts of financial decisions you take in your life. You make gifts to your children; you make investments and acquire real estate. Do you really know the tax implications of these decisions, which can save you thousands of dollars?
Stop donating your money to IRS is an e-book on these little known tax secrets. It is written by Chintamani Abhyankar, a tax professional for last 25 years. Get the expert advice.
Stop donating your money to IRS is an e-book on these little known tax secrets. It is written by Chintamani Abhyankar, a tax professional for last 25 years. Get the expert advice.
Article Source: http://EzineArticles.com/?expert=Chintamani_Abhyankar
Recommended Program Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers
Practically All Areas Of Household
And Modern Living Expenditure
Recommended Program Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers
Practically All Areas Of Household
And Modern Living Expenditure
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