Scammers are increasingly targeting elderly wartime veterans by offering to help them qualify for the Department of Veterans Affairs (VA) Aid and Attendance pension — only to drain their assets and leave them ineligible for both the VA benefit and Medicaid. This practice, known as "pension poaching," has become a growing threat to vulnerable veterans and their families.
In a new video, Professor Erica explains how these scams work. Fraudsters often promise to transfer a veteran’s assets into trusts or annuities to meet the VA’s income limits for the pension. However, the VA imposes a 36-month look-back period on asset transfers. If a veteran gives away assets or sells them for less than fair market value within that period, the VA can deny or penalize the pension application.
Worse, many of these schemes destroy the veteran's eligibility for Medicaid, which also has its own look-back period. Once the assets are gone or tied up in unsuitable financial products, the veteran may be left without funds for long-term care.
Professor Erica advises veterans to never pay for help with VA pension claims. Instead, they should seek assistance from accredited Veterans Service Officers (VSOs) or attorneys who are authorized by the VA and charge no fee for claims assistance.
"If someone promises to get you the pension faster or guarantees approval, that's a red flag," warns Professor Erica. "Accredited representatives are free, and they know the rules without risking your eligibility."
She also recommends that veterans and their families be aware of the following warning signs:
- Unsolicited phone calls or home visits offering to help with VA benefits
- Requests for upfront fees or monthly payments for claims assistance
- Pressure to transfer assets into specific trusts or annuities
- Guarantees of approval or promises to expedite the process
The VA has resources to report suspected fraud, including the VA Office of Inspector General hotline. Veterans can also verify an accredited representative’s status through the VA’s Office of General Counsel website.
By staying informed and working only with accredited professionals, veterans can protect their hard-earned benefits and avoid falling victim to pension poaching schemes.