VA Is Tightening Rules on LTC Benefit for Veterans

There's also a three-year lookback period now, which means that applicants who transferred assets to protect them will be penalized by being denied benefits for up to five years. There are exceptions; for instance, for transfers to a trust for a child who cannot "self-support." There are also new transfer penalties for any gifts and/or transfers that were made at less than fair market value.

The use of immediate annuities and planning strategies around gifting will also be restricted.

The new rules, which go into effect on Oct. 18, can be found here.

Veterans would be well advised to have any pending planning strategies re-evaluated — or set them in motion as quickly as possible. The report says, "The VA will disregard asset transfers made before that date. Applicants may still have time to get through the process before the rules are in place." It suggests that veterans or spouses who think they may be affected by the new rules should immediately contact their attorneys.

Additional information can be found here, although as of this writing it had not been updated to reflect the new rules.

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