Saturday, June 9, 2012

Some veterans hide assets to get need-based pension

VA pension fund exploited
GAO: Some veterans hide assets to get need-based pension — and some companies prey on vets
By Josh Sweigart and Andrew J. Tobias
Staff Writer
Updated 10:04 PM Friday, June 8, 2012

By hiding hundreds of thousands of dollars in assets, some veterans are able to exploit a program meant to help low-income wartime vets with cash assistance. And hundreds of companies, some of whom may have predatory practices, are charging hefty fees to steer veterans through this loophole.

These are the findings of a year-long investigation by the U.S. Government Accountability Office of a needs-based pension administered by the Department of Veterans Affairs.

The GAO noted multiple instances of attorneys and financial planners helping veterans move assets into trusts controlled by family members or annuities. One veteran qualified for benefits just three weeks after transferring more than $1 million elsewhere.

The program pays between $8,219 and $24,239 annually, tax-free.

The amount is based on number of dependents and medical need.

Veterans at the Dayton VFW on Wilmington Pike interviewed Thursday were troubled that people who wouldn’t otherwise be eligible find loopholes to get into the program, especially as benefits for veterans face increasing budget pressures in Washington.
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