Veteran's Home Care and Assisted Living Benefits: Buyer Beware

The Veteran's Administration has a great little pension program known as VA Aid and Attendance that pays for up to $1400 or so in home care or assisted living for veterans of active duty who meet certain qualifications.  I recommend it to many of my clients.  

Problem is that it's quite complicated to pay for this benefit, and approval normally takes months.

That's why hundreds of companies and services have sprung up to help veterans access Aid and Attendance benefits.  And as you might suspect, while many of these firms are doing good work, helping vets to afford vital services, some are more like sharks that smell blood in the water.

One of these sharks found my uncle earlier this year.  My aunt had recently died, and my uncle was living alone in an apartment within an assisted living community in suburban Chicago.  The assisted living's management gave this "financial advisor" complete access to its residents. Within a matter of minutes, he had introduced himself to my uncle, who has slight dementia and was grieving the loss of his wife.   

It didn't take long for him to talk my uncle into signing up, and signing away not only $1500 -- the "advisor's" fee for processing the applications -- but also power of attorney on my uncle's investment accounts.  

Fortunately, my uncle mentioned this transaction to my father, who, after much threatening,  was able to retrieve from the "advisor" my uncle's original discharge papers from military service, as well as the signed power of attorney.  The $1500 is gone.

VA Aid &Attendance can be a valuable source of home care or assisted living funding.  But if you or someone you know is looking at quickly accessing this benefit through an assistance company, make sure you're dealing with a reputable, established organization (ask for references -- both clients and professional references). Many of these companies do require up-front fees ranging from $500 to $1500.  Others require no up-front fee, but charge an ongoing fee for managing the care provided under the benefit.  Or contact a local non-profit VA services organization in your area -- most have representatives who can help you fill out the paperwork if you're able to deal with the 4-6 month waiting period for approval from the Veterans Administration.