Will the VA deem me incompetent if I hire a Elder Law attorney?

Question

I was discharged from the Navy in 1974 after my 2nd enlistment with a 30% disability rating. I worked in the private sector for 42 years.  I am now retired. I manage my own affairs, do my own taxes, and stick to my budget. I am on fixed income (SSRI and VADC) and have very little debt, just monthly household expenses. I own my home and am very busy in retirement.

I have no direct descendants, therefore, in an emergency such as an auto accident, I have discussed with my oldest nephew giving him emergency power of attorney to go to a branch of my bank near where he lives and ask them to set up bill payments for XX months out of my bank account. The PoA has a list of my household bills, the amounts, the addresses, due dates, and account numbers. I asked one of the CSRs at a bank branch near my house if the bank could do this, and she said yes, they just need the PoA.

Since I am leaving my estate to my oldest nephew and his brother, this just makes sense to me. It does not mean that he would be authorized to withdraw money at will from my account.

I worked in Accounts Receivable at a major law firm for 14 years. Two of my attorneys were Trust & Estate attorneys. My mother was, at the time, reluctant to do any estate planning because she thought it would make her look helpless. I asked those two attorneys how someone is determined to be incompetent and they both said a LOT of evidence is needed to prove someone incompetent.

It seems to me that my thinking ahead like this, which is necessary, is the smart thing to do, but some of the response I see indicates that the VA may somehow decide that doing this makes me incompetent, simply because I'm thinking ahead and being prepared. That is ridiculous. It has no basis in reality, and is likely to cause me a huge lot of financial headaches.

I only go to the VAHCC near me for a flu shot, nothing more, and have yet to be asked any strange questions that invade my privacy. But I think my concern about their hyperaggressive approach is somewhat valid. No, I have not been called in for anything, and the flu shot was a walk-in.

I'd like to know if I'm overreacting to the VA's unnecessarily aggressive approach, or if my concerns are real. If so, what else can I do to keep their noses out of my life?

Jim's Reply

VA doesn't consider fiduciaries for veterans who have 30% ratings. The VA fiduciary is pretty much reserved for the veteran who is recently rated at 100% and will receive a substantial (Over $20,000.00 in most cases) retroactive payment because of an appeal.

When veterans are involved in estate planning it's always a good idea to work with an attorney who is knowledgeable in both VA law and elder and estate law.  We're fortunate that Attorney Drew Early is associated with Stateside Legal and is accredited in both disciplines of the law. You can contact Attorney Early here http://www.militaryveteransadvocate.com/

Jim

 

 

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