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 #1 WWII Veteran (85) and Spouse (deceased) Veteran is in a Memory Care Unit Annuity has $150,000 of gain Total Net Worth = $495,000 House = $110,000 IRA = $ 25,000 Annuity = $350,000 Liquid assets = $ 10,000

Case #1 Total Current Income = $2,500 Total Current UME = (4,881) IVAP=$ 0 Can qualify for Pension

Case #1 After Plan is Implemented Total 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, VAPT (Veterans Asset Protection Trust) for assets 7, Transfer House to IDGT 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, Reduces future income tax liability on annuity 45, Start clock for Medicaid BENEFITS$143,600 ROI (return on Investment)1,149%

Case #2 WWII Veteran (85) and Spouse (84) Veteran is in a Memory Care Unit Spouse is in good health Long Term Policy paying $3,000 per month Total Net Worth = $667,300 House = $350,000 IRA = $ 91,000 Liquid assets = $226,300

Case #2 Total Current Income = $9,391 Total Current UME = (6,701) IVAP=$2,689 Can not qualify for Pension

Case #2 After Plan is Implemented Total Current Income = $6,701 Total Current UME = (6,701) IVAP=$ 0 Can now qualify for Full Pension

Case #2 – Recommendations 1. Income tax analysis for IRA withdrawal$1, VAPT (Veterans Asset Protection Trust) for assets 7, Transfer House to IDGT 4, Reduce LTC Payments to stretch-out LTC payments 5. Leave $30,000 in joint accounts with children 6. Transfer excess assets to VAPT TOTAL INVESTMENT$12,500

Case #2 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $116, Stretch-out LTC Payments 3. Reduces income tax liability on IRA 15, Start clock for Medicaid BENEFITS$116,900 ROI (return on Investment)1,056%

Case #3 WWII Veteran (85) and Spouse (59) Veteran is in a Memory Care Unit Spouse is in good health 3 RD marriage for veteran and 2 nd for spouse Total Net Worth = $1,212,000 Houses = $ 310,000 IRAs = $ 439,000 Liquid assets = $ 463,000

Case #3 Total Current Income = $7,580 Total Current UME = (4,696) IVAP=$2,884 Can not qualify for Pension

Case #3 – Beginning Assets AssetsVeteranSpouseJointTotal House$110,000$200,000$310,000 IRA$423,00016,000439,000 Annuity85,000 Other198,000180,000378,000 TOTAL$706,000$126,000$380,000$1,212,000

Case #3 - Revised After Plan is Implemented Total Current Income = $2,725 Total Current UME = (4,696) IVAP=$ 0 Can now qualify for Full Pension

Case #3 – Revised AssetsVeteranSpouseJointTotal House$110,000$200,000$310,000 IRA$439,000 Annuity85,000 Other20,000358,000378,000 TOTAL$20,000$634,000$558,000$1,212,000

Case #3 – Recommendations 1. Divorce – give IRA to Spouse in settlement$3, VAPT (Veterans Asset Protection Trust) for assets 7, Transfer Veteran’s House to IDGT 4, Family Meetings to work out divorce settlement 2, Keep $20,000 in joint account with children 6. Transfer excess assets to VAPT TOTAL INVESTMENT$16,500

Case #3 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $98, Move income tax liability on IRA to Spouse rather than split non-taxable assets 126, Start clock for Medicaid BENEFITS$225,540 ROI (return on Investment)1,367%

Case #4 WWII Veteran (85) and Spouse (84) Veteran had stroke being care for at home Spouse is in fair health Total Net Worth = $818,300 Houses = $350,000 IRAs = $242,000 Liquid assets = $226,300

Case #4 Total Current Income = $2,801 Total Current UME = (2,187) IVAP=$ 614 Can qualify for a portion of Pension

Case #4 – Beginning Assets AssetsVeteranSpouseJointTotal House$350,000 IRA$226,00016,000242,000 Annuity Other226,300 TOTAL$226,000$16,000$576,300$818,300

Case #4 - Revised After Plan is Implemented Total Current Income = $4,620 Total Current UME = (4,837) IVAP=$ 0 Can now qualify for Full Pension

Case #4 – Revised Assets AssetsVeteranSpouseTrustTotal House$350,000 IRA$16,000 Annuity226,300 Other10,000 6,0008,000 TOTAL$10,000$26,000$582,300$618,300

Case #4 – Recommendations 1. Personal Caregiver Agreement$2, VAPT (Veterans Asset Protection Trust) for assets 7, Transfer Veteran’s House to IDGT 4, Calculate IRA withdrawals 1, Purchase SPIA - $200,000 of IRA assets – 10 year payout 0 6. Withdraw $26,000 from IRA TOTAL INVESTMENT$15,000

Case #4 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $116, Withdraw IRA without income taxes 67, Start clock for Medicaid BENEFITS$184,440 ROI (return on Investment)1,230%

Case #5 WWII Veteran (85) never married Veteran had stroke He is in an ALF Total Net Worth = $727,500 Annuities = $707,500 ($313,000 gain) Liquid assets = $ 20,000

Case #5 Total Current Income = $1,527 Total Current UME = (5,081) IVAP=$ 0 Can qualify for Pension

Case #5 – Beginning Assets AssetsValue Annuities$707,500 Checking/savings$20,000 TOTAL$727,500

Case #5 - Revised After Plan is Implemented Total Revised Income = $4,822 Total Current UME = (5,081) IVAP=$ 0 Can now qualify for Full Pension

Case #5 –Revised Assets AssetsVeteranTrustTotal Savings$20,000 Invested0$348,000 Total$20,000$348,000$368,000

Case #5 – Recommendations 1. Income tax analysis for annuity withdrawals$ 9, VAPT (Veterans Asset Protection Trust) for assets 7, Purchase SPIA - $359,000 of Annuity assets – 10 year payout 6. Withdraw $348,000 from annuities over 2 years TOTAL INVESTMENT$16,000

Case #5 – Benefits to Client 1. Reduce income tax liability of annuities saves$313, Qualify for VA Pension (5 year benefit) 98, Start clock for Medicaid BENEFITS$411,640 ROI (return on Investment)2,573%

Case #6 WWII Veteran (85) and Spouse (84) Veteran had stroke in nursing home on Medicaid Spouse is in Assisted Living Total Net Worth = $207,500 House = $100,000 IRAs = $ 75,000 Liquid assets = $ 32,500

Case #6 Total Current Income = $1,950 Total Current UME = (3,756) IVAP=$ 0 Can qualify for a portion of Pension

Case #4 – Beginning Assets AssetsVeteranSpouseJointTotal House$100,000 IRA$75,00075,000 Annuity25,000 Other7,500 TOTAL$75,000$25,000$107,500$207,500

Case #6 - Revised After Plan is Implemented Total Revised Income = $2,721 Total Current UME = (3,756) IVAP=$ 0 Can now qualify for Full Pension

Case #6 – Revised Assets AssetsVeteranSpouseChildrenTotal House$20,000$80,000$100,000 IRA Annuity25,000 Other7,500 TOTAL$ 0$52,500$80,000$132,500

Case #6 – Recommendations 1. Income tax analysis for IRA and annuity withdrawals$4, Put house in Spouse’s name and gift majority of equity 4, Purchase SPIA - $75,000 of IRA assets –6 year payout 0 TOTAL INVESTMENT$8,000

Case #6 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $116, Preserve Medicaid Qualification ($6,000 x 5 years) BENEFITS$116,940 ROI (return on Investment)1,462%

Thanks for attending Together we can help those that have built this country James B. Swain, JD, MBA Founder and CEO /