What is a VA Asset Protection Trust?

Christian Worstell
In this article...
  • If you are a veteran, you may be interested to learn about VA pension benefit asset protection trusts. Learn more about this VA benefit in the sections below.
Veteran father smiles and embraces his children

What Is a VA Asset Protection Trust?

A VA asset protection trust does what the name says: It protects a veteran's assets so their eligibility can be maintained for other benefits unique to veterans. The VA asset protection trust is classified as an irrevocable trust, meaning the assets can not be removed once they are placed in the trust.

Assets placed in a VA asset protection trust cannot be considered when determining a veteran's eligibility for government programs that provide assistance, such as Medicaid and other VA benefits.

Placing Assets Into a VA-Compliant Trust

An irrevocable trust lets you preserve your savings so you can stay eligible for VA or Medicaid benefits. These assets won't count towards the resource limit for these programs. This process lets you preserve your savings in the trust and control what happens to them.

What happens to the money placed in the VA Benefit Asset Protection Trust?

The answer is: whatever the trustee wants. Once the assets are in the trust, the trustee (typically yourself or someone you've named) controls what happens to them, including how they're managed and how they're spent.

Can I transfer funds into a trust now in order to qualify for VA benefits?

You can, but you're likely to pay a penalty. VA benefits in particular have what's called a lookback period of three years prior to you applying for benefits, and if you've given away money or assets in that time, you might be assessed with a penalty.

It's always a good idea to confer with legal counsel prior to making any such transfers or opening a VA asset protection trust. An experienced lawyer who helps people with trust-related matters can advise you on what might be the best decision to make based on your goals, income and asset amounts.

Christian Worstell
About the Author

Christian Worstell is a senior Medicare and health insurance writer with HelpAdivsor.com. He is also a licensed health insurance agent. Christian is well-known in the insurance industry for the thousands of educational articles he’s written, helping Americans better understand their health insurance and Medicare coverage.

Christian’s work as a Medicare expert has appeared in several top-tier and trade news outlets including Forbes, MarketWatch, WebMD and Yahoo! Finance.

While at HelpAdvisor, Christian has written hundreds of articles that teach Medicare beneficiaries the best practices for navigating Medicare. His articles are read by thousands of older Americans each month. By better understanding their health care coverage, readers may hopefully learn how to limit their out-of-pocket Medicare spending and access quality medical care.

Christian’s passion for his role stems from his desire to make a difference in the senior community. He strongly believes that the more beneficiaries know about their Medicare coverage, the better their overall health and wellness is as a result.

A current resident of Raleigh, Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism. You can find Christian’s most recent articles in our blog.

If you’re a member of the media looking to connect with Christian, please don’t hesitate to email our public relations team at Mike@MyHelpAdvisor.com.

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