A family hears that the pension has a money test and assumes the answer is no. Often the answer depends on which assets count, not on the total in the bank. This piece covers how to tell whether the money problem is real or only looks real from the kitchen table.

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What the test measures

The pension money test is a net worth test, which is a separate question from the income test. Net worth is measured against a limit that VA publishes and changes from time to time [1]. Look up the limit on VA.gov before you do any arithmetic, because a figure you saw earlier may no longer apply.

What is usually excluded

The home where the veteran lives is generally excluded from net worth [1]. Land around that home follows its own rule, and land beyond what VA treats as part of the residence can count. Check that rule against the parcels you actually own, not the ones you remember. Ask also how vehicles and personal property are treated under the rules in effect when you file, and get the answer in writing from the VA source rather than from a relative.

What is usually counted

Bank accounts, certificates of deposit, stocks, bonds, and rental property generally count at their value [1]. Land beyond the residence and any vehicles should be checked against the current VA rule before you decide they are excluded. Gifts made or sales made below value can also draw questions, and those questions are separate from the total on the day you file.

How to test whether you have the problem

  1. List every asset on one line each, with its value on the date you are testing and a label for the home, cash, investments, land, or other.
  2. Subtract only what the current VA rule excludes. Do not subtract a debt until you have confirmed VA allows it.
  3. Ask which unreimbursed expenses VA lets you deduct, and keep a receipt for each one you plan to claim.
  4. Compare the result with the limit on VA.gov and write down the gap, whether above or below.
  5. If the figure is close to the limit, have a VA-accredited representative or a county or state service officer check the arithmetic before you spend money on any plan. Their help is free to file, and one calculation by one person is not enough to rely on.

What the total does not tell you

Net worth is measured on a date. A sale that brings in cash after that date changes the picture later, and a spending plan made on the day of the test may look different six months on. Decisions about selling property or moving money belong with a qualified advisor who can see the whole household, not with a rule of thumb from a relative or a forum post.

When to stop and look elsewhere

If the countable total stays clearly above the limit after the correct exclusions, the pension is not the path for now, and Dad's care budget should be built on that finding. If it sits near the line, recheck the rule and the figures on a regular schedule, because the limit and its treatment of property can change. For free help with the math and the paperwork, see the St. Louis offices page, and for the sources behind each rule, see the sources page.

Notes

  1. VA.gov, Veterans Pension program pages: net worth limit, treatment of the primary residence and surrounding land, and countable asset rules.