Case Studies

Case Studies

James (Jim) Swain, JD

Founder and CEO of the Academy of VA Pension Planners, LLC

Valerie Peterson, JD

Executive Director of ElderCounsel, LLC

Case #1WWII Veteran (85) and Spouse (deceased)Veteran is in a Memory Care UnitAnnuity has $150,000 of gainTotal Net Worth = $495,000

• House = $110,000• IRA = $ 25,000• Annuity = $350,000• Liquid assets = $ 10,000

Case #1

Total Current Income = $2,500Total Current UME = (4,881)IVAP = $ 0

Can qualify for Pension

Case #1

After Plan is ImplementedTotal Current Income = $4,469

Total Current UME = (4,881)IVAP = $ 0

Can qualify for Full Pension

Case #1 – Recommendations

1. Income tax analysis for IRA withdrawal$1,500

2. VAPT (Veterans Asset Protection Trust) for assets 7,000

3. Transfer House to IDGT 4,000

4. Purchase SPIA with $120,000 of annuity – 5 year payout

5. Leave $25,000 in Ira and $10,000 in joint account with children

6. Transfer excess assets to VAPT

7. Withdraw $30,000 from annuity

TOTAL INVESTMENT $12,500

Case #1 – Benefits to Client

1. Qualify for VA Pension (5 year benefit) $98,600

2. Reduces future income tax liability on annuity 45,000

3. Start clock for Medicaid

BENEFITS$143,600ROI (return on Investment) 1,149%

Case #2WWII Veteran (85) and Spouse (84)Veteran is in a Memory Care UnitSpouse is in good healthLong Term Policy paying $3,000 per monthTotal Net Worth = $667,300

• House = $350,000• IRA = $ 91,000• Liquid assets = $226,300

Case #2

Total Current Income = $9,391Total Current UME = (6,701)IVAP = $2,689

Can not qualify for Pension

Case #2



Can now qualify for Full Pension


1. Income tax analysis for IRA withdrawal$1,500


3. Transfer House to IDGT 4,000

4. Reduce LTC Payments to stretch-out LTC payments

5. Leave $30,000 in joint accounts with children





2. Stretch-out LTC Payments

3. Reduces income tax liability on IRA 15,000



Case #3WWII Veteran (85) and Spouse (59)Veteran is in a Memory Care UnitSpouse is in good health3RD marriage for veteran and 2nd for spouseTotal Net Worth = $1,212,000

• Houses = $ 310,000• IRAs = $ 439,000• Liquid assets = $ 463,000

Case #3

Total Current Income = $7,580Total Current UME = (4,696)IVAP = $2,884

Can not qualify for Pension

Case #3 – Beginning Assets

Assets Veteran Spouse Joint TotalHouse $110,000 $200,000 $310,000IRA $423,000 16,000 439,000Annuity 85,000 85,000Other 198,000 180,000 378,000TOTAL $706,000 $126,000 $380,000 $1,212,000

Case #3 - Revised




Case #3 – Revised

Assets Veteran Spouse Joint TotalHouse $110,000 $200,000 $310,000IRA $ 439,000 439,000Annuity 85,000 85,000Other 20,000 358,000 378,000TOTAL $20,000 $634,000 $558,000 $1,212,000


1. Divorce – give IRA to Spouse in settlement$3,500


3. Transfer Veteran’s House to IDGT 4,000

4. Family Meetings to work out divorce settlement 2,000

5. Keep $20,000 in joint account with children





2. Move income tax liability on IRA to Spouse rather

than split non-taxable assets 126,900



Case #4

WWII Veteran (85) and Spouse (84)Veteran had stroke being care for at homeSpouse is in fair healthTotal Net Worth = $818,300

• Houses = $350,000• IRAs = $242,000• Liquid assets = $226,300

Case #4


Can qualify for a portion of Pension


Assets Veteran Spouse Joint TotalHouse $350,000 $350,000IRA $226,000 16,000 242,000AnnuityOther 226,300 226,300TOTAL $226,000 $16,000 $576,300 $818,300

Case #4 - Revised




Case #4 – Revised Assets

Assets Veteran Spouse Trust TotalHouse $350,000 $350,000IRA $16,000 $16,000Annuity 226,300 226,300Other 10,000 10,000 6,000 8,000TOTAL $10,000 $26,000 $582,300 $618,300


1. Personal Caregiver Agreement$2,500


3. Transfer Veteran’s House to IDGT 4,000

4. Calculate IRA withdrawals 1,500

5. Purchase SPIA - $200,000 of IRA assets – 10 year payout 0

6. Withdraw $26,000 from IRA




2. Withdraw IRA without income taxes 67,500


BENEFITS$184,440

ROI (return on Investment) 1,230%

Case #5

WWII Veteran (85) never marriedVeteran had strokeHe is in an ALFTotal Net Worth = $727,500

• Annuities = $707,500 ($313,000 gain)• Liquid assets = $ 20,000

Case #5


Can qualify for Pension


Assets Value

Annuities $707,500

Checking/savings $20,000

TOTAL $727,500

Case #5 - Revised

After Plan is ImplementedTotal Revised Income = $4,822



Case #5 –Revised Assets

Assets Veteran Trust Total

Savings $20,000 $20,000

Invested 0 $348,000 $348,000

Total $20,000 $348,000 $368,000


1. Income tax analysis for annuity withdrawals $ 9,000


3. Purchase SPIA - $359,000 of Annuity assets – 10 year payout

6. Withdraw $348,000 from annuities over 2 years



1. Reduce income tax liability of annuities saves$313,000

2. Qualify for VA Pension (5 year benefit) 98,640


BENEFITS$411,640


Case #6

WWII Veteran (85) and Spouse (84)Veteran had stroke in nursing home on MedicaidSpouse is in Assisted LivingTotal Net Worth = $207,500

• House = $100,000• IRAs = $ 75,000• Liquid assets = $ 32,500

Case #6


Can qualify for a portion of Pension


Assets Veteran Spouse Joint TotalHouse $100,000 $100,000IRA $75,000 75,000Annuity 25,000 25,000Other 7,500 7,500TOTAL $75,000 $25,000 $107,500 $207,500

Case #6 - Revised

After Plan is ImplementedTotal Revised Income = $2,721



Case #6 – Revised Assets

Assets Veteran Spouse Children TotalHouse $20,000 $80,000 $100,000IRAAnnuity 25,000 25,000Other 7,500 7,500TOTAL $ 0 $52,500 $80,000 $132,500


1. Income tax analysis for IRA and annuity withdrawals$4,000

2. Put house in Spouse’s name and gift majority of equity 4,000

3. Purchase SPIA - $75,000 of IRA assets –6 year payout 0




2. Preserve Medicaid Qualification ($6,000 x 5 years)

BENEFITS$116,940


Thanks for attending

Together we can help those that have built this country

James B. Swain, JD, MBA Founder and CEO [email protected]/888-928-2779 www.avapp.org

mailto:[email protected]

Case Studies

Documents

total current ume

vapt total investment

annuity total investment

pension case

liquid assets

income tax analysis

transfer excess assets

transfer house