Happy Veteran’s Day to all our vets out there! I have an immense amount of gratitude towards all of you for your selfless service to our country.
Estate Planning for veterans and servicemembers can include some challenging aspects but there are many resources available to servicemembers and veterans. For example, many servicemembers qualify for a free will according to the Veterans Affairs website. There are also military websites that discuss the importance of estate planning and different options.
But some very helpful planning tools exist that are not mentioned on either of these sites. One such tool is the Veterans Asset Protection Trust or Irrevocable VA Trust. There are some veterans benefits that have income or asset eligibility requirements, such as pension benefits. Careful planning can allow you to qualify for a VA pension by transferring some of your assets into an irrevocable trust. This is true for both wartime veterans and also their surviving spouses. This trust is designed to meet the eligibility requirements from the Veterans Administration of a complete gift or complete relinquishment which means giving up control over that asset. This same trust can also be used to qualify for Medicaid if properly designed and funded. For the right client, this can be of significant help.
Irrevocable trusts should only be used with caution after a detailed analysis of each client’s situation. If you wish for an analysis of your own situation by a professional estate planner, you are more than welcome to call my office for a free consultation on the matter.