VA benefits can reduce the financial strain on those who have served. Putting a veteran’s asset protection trust in place allows a veteran to protect his or her assets so he or she remains eligible for certain benefits.
Understanding what a VA trust is and how it can help you is an important starting point for maximizing your assets and veterans’ benefits.
What is a VA trust?
A type of irrevocable trust, a veteran’s asset protection trust contains assets that are irremovable once in place. The trustee decides on the usage of funds in a VA trust. The trustee may also appoint a trust protector who helps ensure the proper use of the assets in the trust. Older individuals may find this helps give them greater peace of mind about placing their funds in the trust.
Why set up a VA trust?
When deciding who qualifies for VA benefits such as various forms of pensions, veterans’ existing assets play an important role. If a veteran’s assets are beyond a certain limit, they may not qualify for VA benefits. Importantly, this can also apply to other benefits, such as those from Medicaid. If properly placed in a VA trust, assets may be exempt from determining a person’s eligibility for receiving benefits, helping them to qualify when they otherwise may not.
Keep in mind that those interested in setting up a VA trust must handle the situation carefully. Penalties such as fines may result in certain situations. Taking the time required for the process helps ensure the trust functions as desired.