With more elder law attorneys expanding their practices to include the offering of the Veteran's Aid & Attendance (A & A Program) benefits to their clients, if the plan is not properly structured, it may cause the client to be ineligible for Medicaid benefits in the future. Where does the problem lie?
The problem lies in the fact that the A & A Program does not have a look back period for improper transfers or gifts, while the Medicaid program does. As such, in a typical A & A planning case, where a couple has excess resources, the A & A advisor will usually direct the couple to transfer the problem assets directly to their children. With the A & A Program not penalizing transfers or gifts, the couple can be wealthy one day, and poor the next, thus qualifying for A & A benefits. However, if either the husband or wife should need to enter a nursing home facility within the 60 months following the date of the improper transfer or gift, he or she will not be immediately eligible for Medicaid benefits.
