o Benefit can be worth $23,396 TAX FREE for a veteran with one dependent
o Beware those trying to make a quick buck for financial services. Do your homework
o Consider contacting your county veteran service office to see what they can do before spending money in the hopes of qualifying. In San Diego County the number is (619) 531-4545; in Orange County (714) 567-7450; in Los Angeles County, (213) 744-4847
o Improperly filling out a form can result in a lengthy delay

It's mentioned briefly on page 27 of the Veterans Affairs benefit handbook: A single paragraph entitled "Aid and Attendance for Housebound Veterans."

But even this listing is misleading by placement.

The reference is shoehorned into the service-disability section of the booklet when the real power of the Aid and Attendance benefit rests in its application as a non-service connected disability pension benefit.

Older veterans -- and their spouses -- might want to star this story because the little-known benefit might just ensure that their money lasts as long as they do.

If a veteran qualifies, and many do despite income restrictions, the Aid and Attendance benefit can be worth $23,396 a year - $1,949.66 a month - TAX FREE for life.
The benefit can pay surviving spouses $12,660 -- or $1,055 a month -- for life.

The surviving spouse benefit caught the attention of Philip Ziring, a Carlsbad doctor, whose sister, the widow of a World War II veteran, needed help paying for assisted living care.
"As she got older, we (family members) found that all of us were running out of money to support her," Ziring explained.

With the help of North County financial advisor Galen Maddy, Ziring's sister applied for the Aid and Attendance benefit about a year ago. Three months ago, Ziring said, the VA approved it.

"This was a big deal from not only the point of view of getting the finances to support her, but also for her to maintain some level of independence from the rest of us," Ziring said. "It is clearly a weight off our shoulders and it did not cost us a thing."

Randy Torres, a veterans' affairs specialist for the Santee/Lakeside Elks Lodge, recently looked into the Aid and Attendance benefit and left wanting to learn more.

"We have a lot of senior members in our lodge, and they could use the aid. It could be a great help," Torres said.

Maddy said common mistakes veterans or spouses make when trying to gain Aid and Attendant benefits are:

1. Thinking they don't qualify because they earn too much income or have too high of a net worth
2. Procrastination and lack of initiative by adult children to attempt the benefit because the thought of dealing with the VA administrative process is daunting
3. Not using professional services, especially when a veteran has assets above $80,000.
"Veteran Service organizations do a great job, but they are not equipped to do more than help fill out forms," Maddy said. "Often professional help is necessary to obtain the award of benefit."

He said applying for Aid and Attendance is more complicated then meets the eye because of the income limits.

"There are a lot of sharks who come in and try to make a quick buck and can mess up the process," Maddy said. "Families need to do their due diligence in these cases and only use attorney accredited by the VA."

For veterans with income and net worth exceeding $80,000, Maddy said, some financial reorganization is often needed to accommodate VA financial thresholds.

But veterans and their families need to watch what they are being charged for.
While it is illegal to charge a veteran to help him or her apply for a VA benefit, it is legal to charge a fee to create a financial plan or living trust in order to meet the Aid and Attendance requirements.

That's the niche that's Maddy organization "The Veterans Friend" occupies.
"The attorney might cost $7,000, but the benefit could be well worth $200,000. Isn't it worth spending the money for what you get out if it?" Maddy asked.

Ziring, who used Maddy's group, said that his sister's case the cost was virtually nothing. His advice for others:

o Be willing to go through the application process. "It's important to pay for care and important for the independence of the person being cared for."
o Have someone to act as your advocate. "I probably would have thrown up my heads and given up if I had to do this on my own."
o Get the word out. "My two brothers and I am are veterans and none of us had ever heard that this kind of thing was even available."

An estimated 40 percent of veterans and their spouses know nothing of the benefit. And of the 2 million-plus veterans or surviving spouses who could be eligible, only 14 percent of surviving spouses and 27 percent of veterans actually get it.

What is it? A federal assistance program offering a monthly payment from the Department of Veterans Affairs designed to provide care for people who are disabled or frail and might have trouble living on their own. The money can be used to pay assisted-living bills or for home health care. Memory care facilites and skilled nursing care.

Who is eligible? Any veteran who served 90 days or more in active duty, with at least one day in wartime, and who was honorably discharged. Widows and widowers of veterans also are eligible.

What is the maximum payment? $1,949 a month for a veteran and his spouse, $1,055 for a widower. Nursing home residents on Medicaid also can receive $90 per month from Aid and Attendance for their own use.

How do you qualify?
Out-of-pocket medical expenses -- including medications, insurance premiums and assisted- living fees -- are deducted from monthly income when determining eligibility. If the expenses exceed the income, the veteran is eligible. A doctor also must certify that the applicant's health requires him or her to receive care from others.

What about assets?
Applicants are allowed to have about $80,000 in assets, although the exact amount is at the VA's discretion. Property and cars are exempt, however if you get the benefit and sell the house, you will be denied the benefit.

How do you apply?
Attorneys and private companies are allowed to help you apply under certain circumstances. County veteran's service officers also will help you, at no charge. Call 619-531-4545 in San Diego County for more information.

Maddy's organization is The Veterans Friend: Veteransfriend.com. The number is (760) 434-8831.

For more information go to:

www.veteranaid.org/program.php

www.vba.va.gov/bln/21/pension/vetpen.htm

www.veteransaidbenefit.org/