Christopher B. Kroll & Associates – Elder Law Solutions

      Military Retirement pay is taxable income like all other similar retirement income.  Military retirement pay is paid through the Department of Defense, Defense Finance and Accounting Services (DFAS).  The pay stub will have DFAS in the address of the payor.  This type of payment is also frequently called an “annuity.”  This is a payment for the rest of the veteran’s life and is taxable.

     Payments made through the Veteran’s Administration are generally not taxable.  The two primary payment types are (1) Compensation and (2) Pension.  Compensation is payment to a service member for an injury or disease that occurred during service or was due to being in the service.  This type of benefit is the military’s version of worker’s compensation.  The payment is based on the veteran’s disability rating.  Disability compensation is not taxable income.

     Pension is payment to a prior service member who served in the military during a war time period, is 65 or older or is disabled, and has limited income and resources.  This is the VA’s version of Supplemental Security Income (SSI).  When a prior war time veteran has a disability and meets the criteria listed above in this paragraph, then the VA will pay an amount of money to the veteran to bring the Veteran’s income up to a certain level.  This income is not taxable income.

     When a veteran needs the aid and attendance of another person to assist with walking, bathing, dressing, going to the rest room, medication monitoring, etc., then the veteran may also be able to obtain pension with aid and attendance.  This additional income, aid and attendance, is not taxable income.

After 2-years of no cost of living adjustments for VA Pensions, effective December 1, 2011, Veterans and surviving spouses will see the following increase in Pension awards:Married Veteran & Spouse:  $2,200
Single Veteran:  $1,704
Surviving Spouse:  $1,094
Spouse of a Living Veteran:  $1,338These figures represent a 3.6% increase in pension amounts!

Many families overlook the A&A Pension as it pertains to veterans who are still independent, but have an ill spouse.  Keep in mind that in this situation, if the spouse’s medical expenses completely depletes their combined monthly income, the Veteran can file as a Veteran with a sick spouse, and be eligible for $1,338

If a veteran has made a claim for veteran’s benefits and then, unfortunately, passes away, the claim does not necessarily “die with the veteran.”  In certain circumstances, qualified individuals may still apply for accrued benefits up to, but no later than, one year from the date of death. 

Qualifying persons include:

• the veteran’s spouse

• the veteran’s children (must be under 18, or who, before reaching 18, became permanently incapable of self-support, or between the ages of 18-23 and is pursuing a degree at an approved educational institution.

• the veteran’s dependent parents

• that person who bore the expense of the last sickness and burial of the veteran

For additional information, please contact our office.

     The Military Order of the Purple Heart now offers job training to combat wounded and disabled Veterans through the Veterans Vocational Technical Institute (VVTI).  Candidates accepted into the program are trained for the virtual Purple Heart Call Center (PHCC) and help desk.  The Purple Heart Call Center is an international contact center / call center and help desk consulting firm.    The PHCC virtual (at-home) agents provide companies an on-demand approach to their specific needs.  Unlike many other call center / help desk centers, the PHCC agents are trained through an extensive course (12-15 weeks) ensuring that the agents as a whole are fully trained and motivated to succeed, resulting in a lower attrition rate.  Outside companies contract with Purple Heart Services to provide call center support and service.  By employing the PHCC via a contact, a company provides steady employment to combat wounded, disabled veterans, and their spouses. 

     This year VVTI is also offering contract specific training to spouses of active duty members in the armed forces.

     For more information, visit the following website:  http://www.vvti.org/

A fiduciary is someone who has undertaken to act for and on behalf of another in  a relationship of trust and confidence.  A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the “principal”): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.

The purpose of the Department of Veterans Affairs Fiduciary Program is to safeguard VA benefits received on behalf of minors and incompetent beneficiaries through effective supervision.  When a person does not have legal capacity to handle their own affairs and have been awarded Veterans Benefits, a fiduciary may be appointed.  This person may be court appointed or appointed by the VA.   The VA has specific rules on what a fiduciary can and cannot do.  As a fiduciary approved by the VA, you cannot:

• Make cash disbursements or write checks payable to cash

• Mix VA funds with your own personal funds

• Make major purchases without VA approval

• Make gifts without VA approval

• Borrow or loan money from the beneficiary’s funds

• Purchase a home, or other real estate, without first seeking VA approval and court appointment

Most people think of veterans benefits as being only for servicemen and women who were wounded or disabled while serving in the armed forces.  By and large, that is true.  But we have learned that there are substantial benefits that may be available to wartime veterans who are now senior citizens and are facing the burden of long term care due to a host of diseases such as Alzheimer’s, Parkinson’s, MS, Lou Gehrig’s Disease, and many others.  In fact, the Veterans Administration estimates that millions of wartime veterans and their spouses may be eligible for Special Monthly Pension benefits, and not even be aware of it! 

Wartime veterans, or their surviving spouses, become eligible for the Special Monthly Pension benefit known as Aid and Attendance when they are over 65 years of age, are permanently disabled and unable to work, are homebound, or need the regular aid and attendance of another—whether at home, in assisted/supportive living, or in a nursing home.  The program is based on actual financial need for assistance, so there are income and asset limitations. 

For more information contact Christopher B. Kroll – Elder Law Solutions – 586-323-4001