"Aid and Attendance" is a commonly used term for a benefit that may be available to veterans as part of the VA's disability pension, or to the surviving spouse of a veteran as part of the VA's death pension. "Aid and Attendance" refers to the fact that for this particular pension benefit, the claimant must demonstrate a regular need for the aid and attendance of a caregiver or the need to live in a protected environment because of physical or mental impairment. If the veteran does not require aid and attendance, but has a low household income, they may be eligible for a base pension of a lesser dollar amount.

For 2009 the maximum annual benefit for those qualifying for the Aid & Attendance level of pension is:

Compensation Income Versus Pension Income
As stated previously, the Aid and Attendance benefit is part of the VA's pension program and should not be confused with the VA's compensation program. Compensation is a certain amount of monthly income awarded to a veteran to compensate for an injury or illness incurred in the service. This injury or illness is referred to as service-connected disability. The amount of compensation income that a veteran will receive is based on what the VA determines to be the veteran's percentage of disability. Compensation income is tax-free and there is generally no income or asset test for eligibility.

The Pension benefit is a monthly income for disabled or older veterans who have a low income. Pension is for veterans who served during a period of war and who may have disabilities that are not connected to their active-duty service. Unlike Compensation, Pension is based on the veteran's financial picture including household income, as well as assets. When determining eligibility, the claimant's income can be adjusted for un-reimbursed medical expenses. If the veteran's net income after un-reimbursed medical expenses exceeds the Pension amount, then there is no award.

While there is also an asset test to qualify for Pension, the claimant may implement a financial and/or estate plan before applying in order to effectively reduce net worth.

Veterans can apply for both Compensation and Pension claims on the same form and VA will consider paying either benefit. If, however, a claimant is awarded both benefits, the claimant can only receive one of them. Generally, if the claimant is dealing with the cost of home care, assisted living or nursing home care, the Pension benefit will most likely result in more income.

There are also death benefit variations of both the Compensation and the Pension program available for surviving spouses or dependent children.

Click here to learn more about the VA's Aid and Attendance Pension Benefit. There is no cost or obligation to speak with someone from Veterans Financial, Inc.

    Aid and Attendance Pension Benefits
    Aid and Attendance Pension Benefit Eligibility
    Aid and Attendance Pension Benefit Application

Veterans Financial, Inc. is a private financial services company not part of the Veterans Administration or a government agency. Many of our representatives hold an insurance license, but they cannot provide tax or legal advice, for such advice please consult a CPA or an attorney.