Imposing a Penalty for Uncompensated Transfers in VA Planning

For all of you who provide VA planning in your practice, please note that on April 17th , 2013, S. 748 was introduced and proposes the following:

• A thirty-six (36) month look back period, commencing the date in which the veteran applies for pension, or, if later, the date in which the resource(s) were disposed of/transferred for less than fair market value;
• A transfer of an asset will include: a transfer to an annuity, trust, or other financial instrument or investment, if such transfer reduces the amount in the corpus of the veteran's estate, or if the veteran has a spouse, the corpus of both estates; 
• The period of ineligibility will be calculated by taking the total, cumulative uncompensated value and dividing it by the maximum monthly pension amount the applicant would have received. This penalty period shall not exceed 36 months;
• The option to reverse ("cure") the uncompensated transfer; and lastly
• Provides an undue hardship provision for the veteran, surviving spouse and children.

To track this bill or to obtain a complete copy of the bill, please visit: http://www.govtrack.us/congress/bills/113/s748

Questions, please visit us at:  www.MedicaidAnnuityPlanning.com