Many people are familiar with Medicaid and how the Estate Recovery program will try to place a lien on a recipient’s home. It’s not surprising that VA recipients are worried that the VA has a similar plan. Good news! The VA works differently than Medicaid with this issue. Similar to Medicaid, VA regulations make the home an exempt resource. Unlike Medicaid however, the VA does not have an Estate Recovery program. The VA will not try to force a sale, or even place a lien on the exempt home to recover the cost of benefits paid.
VA benefit recipients can run into a problem if a home is sold while receiving benefits. The VA will not count the home as exempt once it is sold. Once sold, any proceeds are considered a conversion of assets and may cause the recipient to lose his benefits. If a veteran is considering selling their home while receiving VA benefits, it is imperative that he or she seeks counsel from an elder law attorney. The attorney may be able to help them complete the sale without disrupting benefits. For more information regarding this and many more VA questions please visit our website .