Should I Apply For VA Pension Right After Transferring Assets?

Should I Apply For VA Pension Right After Transferring Assets?

Should I Apply For VA Pension Right After Transferring Assets?It is perfectly legal to transfer assets out of your name before applying for the VA Pension (Aid and Attendance) but the VA does not like this so you need to be wise in how you do it.

After you transfer the assets, you need to wait for a “clean” statement which means that the opening account balance and the closing account balance are about the same.

If you send in a bank or brokerage statement where it has a high beginning balance, shows a bunch of checks or gifts out, and a low ending balance, you risk the VA asking about the money that went out.

Now remember that it is perfectly legal to do transfer the assets.


You will have to tell the VA about the gifts and they will want to know where the gifts went. 

If it went to a trust, then the VA will want to see the trust.

Now if you have used a properly created ir-revocable trust that complies with the VA rules, you should be fine.

But the VA may delay processing your application for quite a while because it is looking to see if there was anything that was done that does not comply with the VA rules.

You may find the VA comes back to you time and time again over the most ridiculous stuff and that the VA asks you over and over about the same items.

Why do they do this?

Because, even though gifts are legal, the VA doesn’t like gifts.

They like to delay this.

The bottom line is make sure you are getting good advice before you make any transfers or gifts:

  • To make sure the transfers meet the rules and requirements of the VA;
  • To make sure you understand the implications and consequences of all such transfers under Alabama Medicaid; and
  • To know when to make the transfers and when to file the VA application.

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Thanks for reading, and have a great day!

-John G. Watts

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