On Friday, January 23, 2015 (see Federal Register), the V.A. issued proposed new Veterans Administration regulations that would penalize wartime veterans up to ten years for making gifts of assets for less than fair market value. The V.A. is trying to stop what they perceive as lawyers and financial advisors from “taking advantage of veterans” when helping them strategically plan to preserve assets and qualify for the Improved Pension benefit.
The proposed changes in regulations would:
- Establish a 3 year look back for gifts
- Impose penalties for up to 10 years
- Create a bright-line liquid asset standard of $120,000+/-, which includes annual income
- Deny any expenses related to independent living facilities as care costs
- Deny Veterans benefits if their home is on a lot of more than 2 acres.