Federal Trade Commission | consumer.ftc.gov

Veterans’ Pensions

Protect Your Money 

From Poachers

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Veterans and their families are a target for some dishonest advisers who are claiming to offer free help 

with paperwork for pension claims. The scheme involves 

attorneys, financial planners, and insurance agents trying 

to persuade veterans over 65 to make decisions about 

their pensions without giving them the whole truth about 

the long-term consequences.

Specifically, these unscrupulous brokers try to convince 

veterans to transfer their assets to a trust or to invest 

in insurance products so they can qualify for Aid and 

Attendance benefits. What they don’t reveal is that these 

transactions could mean that the veteran loses eligibility 

for Medicaid services or loses the use of their money for a 

long time. Adding insult to injury, the advisers are charging 

fees that range from hundreds to thousands of dollars for 

their services.

Your best defense against someone who wants to poach 

your pension to get you a better deal? A firm “no, thanks.”

Questionable Advice

If you’re a veteran over 65, you may be approached by 

people with convincing come-ons offering to help you 

apply for supplemental pension benefits. Whether it’s 

through an ad or a website, the offer usually involves a 

free seminar and claims that:

“We’ll show you – for free how to qualify for your benefits 

and stay in your home.”

“We guarantee you’ll get your Aid and Attendance 

pension.”

“As a veteran, you’re entitled to these benefits.”
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The people behind these pitches, who may claim 

to be veterans’ advocates, also show up at assisted 

living facilities, senior centers, or other places in your 

community to help you submit your application for A&A 

benefits to the Department of Veterans Affairs (VA). But 

often, they’re unscrupulous lawyers, financial planners, 

or insurance agents who merely rent the space to deliver 

a lunch or some snacks along with a high-pressure sales 

pitch for their products and services. These so-called 

advisers may claim to be veterans to gain your trust 

and they appeal to your emotions to create anxiety and 

apprehension about your future. As a rule, they leave 

out important details; the truth is that if you follow their 

advice, you’re likely to end up without the supplemental 

pension benefits they promise, disqualified from other 

government benefits, and stuck in a financial investment 

that’s not in your or your family’s best interest for the 

long term.

The offers almost always involve the Enhanced Pension 

with Aid and Attendance (also called A&A), which 

supplements a military pension but is only available in 

limited circumstances. The qualifications for A&A are 

specific and strict: You must be over 65; be eligible for a 

military pension; fall under an income threshold; and need 

help with daily living tasks (bathing, feeding, dressing, 

and toileting), be incapacitated physically or mentally, 

have severely limited eyesight, or be confined to bed or 

in a nursing home. A&A is never granted automatically 

either to veterans of a certain age or those with particular 

disabilities.
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The Rules in Brief

The so-called advisers offer to help you complete the 

paperwork to file your benefits claims. If your assets are 

above the required threshold, their goal is to convince you 

to restructure your finances so you can qualify for A&A. 

That’s how they earn their money: by selling you an 

annuity or creating a trust. For instance, the more money 

you put into certain insurance products, the more money 

the insurance adviser gets paid.

Here’s what you need to know:

► Transferring assets. Under current rules, it is 

not illegal to shift your assets to family members 

or to a trust to make you appear needy and qualify 

for A&A benefits. But transferring assets can have 

serious consequences: it can disqualify you for A&A 

benefits rather than qualify you. If disqualified, 

you would be required to return any A&A benefits 

already paid to you. Also, A&A benefits may not 

be enough to fund your long-term care expenses, 

and you may need to apply for Medicaid, the 

government’s program for people who cannot afford 

medical care. But Medicaid has a 60-month lookback period: If you’ve moved substantial assets 

at less than market value during the previous five 

years, you may be ineligible for Medicaid services.

► Annuities. If you buy an annuity, you pay a 

premium and then you get regular payments over 

time from an insurance company. People often use 

annuities to provide a steady stream of income. 

But depending on the annuity, if you need money 

early and have to withdraw it, you may have to pay 
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very high fees. Annuities aren’t right for everyone: 

their suitability depends on your age, needs, 

and particular situation. For more information 

about deciding whether an annuity is right for 

you, visit the National Association of Insurance 

Commissioners.

Applying for A&A Benefits

To apply for A&A benefits, write to the VA Regional 

Office where you applied for your military pension. There 

is no cost for the forms and no fees to apply. Learn more 

about Aid and Attendance or Housebound benefits.

The VA accredits three types of professionals to help you 

complete and file pension claims:

► representatives of VA-recognized Veterans Service 

Organizations

► independent claims agents

► private attorneys

Accreditation means that the provider is trained in how 

to fill out paperwork and file claims, and isn’t allowed to 

charge you to complete and submit your forms. The VA is 

reviewing its procedures for determining which Veterans 

Service Organizations they recognize. To arrange for help 

from an accredited adviser, search the VA’s list. Free help 

in navigating your options may be available from state 

veterans’ affairs offices and your state insurance regulator.
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Navigating The Process

► It is free to apply for veterans’ benefits. If you’re 

completing the application yourself, don’t pay for 

forms. If someone is helping you, know that the 

people who are accredited through the VA are not 

allowed to charge you to help you complete and 

submit VA paperwork.

► Check for accreditation and licensing. Confirm 

that the person helping you is accredited through 

the VA. That means they’re trained to help with 

completing and submitting claims to the VA; 

it doesn’t mean the VA endorses the person’s 

products, advice, or ethics. Look into the licensing 

and professional status of the person helping you:

● For insurance agents: If you are considering 

buying an annuity, check with your state 

insurance regulator to confirm that the seller is 

licensed.

● For lawyers: Check with your state Bar 

Association to see if the lawyer is licensed 

in your state and whether there are ethical 

complaints on file.

● For financial planners: Anyone can call 

themselves a financial planner, but someone using 

the designation Certified Financial Planner must 

meet certain professional and ethical standards 

of the Certified Financial Planner Board of 

Standards. Determine whether an adviser is 

certified and whether any disciplinary actions 

have been taken or are on file. The National 

Association of Personal Financial Advisors can 
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give you a list of planners that you pay directly 

(fee-for-service) rather than by commission on 

your purchases.

► Know what’s in a name. The words “veterans” 

or “military families” in an organization’s name 

don’t necessarily mean that the group represents the 

best interests of veterans or their families. Some 

so-called advisers are dishonest and mislead veterans 

and their families to believe that they are veterans’ 

advocates representing a nonprofit or that they’re 

endorsed by VA.

► Feel fine about responding with a fast no — or 

taking plenty of time to get to yes. Check out an 

organization before you give it any money or do 

business with it in any way. Some deceptive advisers 

use names, seals, and logos that look or sound 

like those of respected, legitimate organizations. 

You may see a small difference in the name of the 

organization from the one you mean to deal with: 

that’s your signal to call the organization you know 

to be legitimate and ask it a lot of questions.

► Consider any pressure to act fast as your cue to 

say no. If you decide to attend a presentation about 

veterans’ benefits, don’t spend any money until 

you’ve had time to think about the options, and play 

out as many potential scenarios as you can imagine. 

If the salesperson is giving you vague or evasive 

answers, walk away. This is not a person you want 

to trust with your money, your benefits, or your 

future.

► You get to decide how to spend your money. Read 

all the papers and the contract carefully. Understand 
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all the terms, conditions, and implications of what 

you are being asked to do. Get everything you 

discussed in writing. If something isn’t clear to you, 

ask for an explanation in writing. Take your time 

to review and consider all your options, including 

doing nothing. Discuss the possibilities with a 

trusted friend or family member. For instance, 

before an annuity contract is final, you get a “free 

look” period. How long the period lasts depends on 

state law. This is your chance to decide you don’t 

want the annuity, return the contract, and get your 

money back.

► Guarantees, schmarantees: There aren’t any.

If an adviser guarantees or promises that they can 

help you get A&A benefits, forget about it. No one 

can promise that the VA will award you a benefit 

– even someone who claims to be VA-approved or 

accredited. Only the VA can do that.

Filing a complaint

If you think someone is trying to sell you an A&A benefits 

bill of goods based on “poaching” your pension, file a 

complaint with:

► your state Attorney General

► Federal Trade Commission

If you want to report a problem with the sale of an 

annuity or other insurance product, file a complaint with 

your state insurance regulator. If you think a lawyer 

has behaved unethically, complain to your state Bar 

Association.
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Resources

Annuities

Seniors: Educate Yourself on Annuities

naic.org/documents/consumer_alert_annuities.htm

Advisers’ Accreditation and Licensing

Research an adviser before doing business. Check the 

relevant professional association to see if they’re licensed 

or certified and whether there are disciplinary actions filed 

against them.

Research a lawyer

Find your state bar association: 

americanbar.org/groups/bar_services/ resources/state_

local_bar_associations.html

Check out a financial adviser

Contact the Certified Financial Planner Board of 

Standards: cfp.net

Confirm an insurance agent is licensed

Locate your state insurance regulator: naic.org

Find a fee-for-service adviser

Contact the National Association of Personal Financial 

Advisors: napfa.org

Free Help 

Look for low or no cost assistance in navigating your 

options. Contact the VA, your state’s veterans’ affairs 

office, or your state insurance regulator. 

Get a list of VA -Accredited Advisers 

va.gov/ogc/apps/accreditation/index.asp
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Find your state’s veterans’ affairs office

va.gov/statedva.htm

Find your state insurance regulator

naic.org

Complaints

If you think an adviser has acted improperly, submit 

a complaint.

Federal Trade Commission

ftc.gov/complaint

Find your state Attorney General’s office

naag.org

Find your state Insurance regulator 

naic.org/state_web_map.htm

Find your state bar association 

americanbar.org/groups/bar_services/resources/state_

local_bar_associations.html

Pension Benefits

Get the facts about available benefits and eligibility at the 

Department of Veterans Affairs.

Learn more about Aid and Attendance or Housebound 

pension benefits

benefits.va.gov/pensionandfiduciary/pension/aid_

attendance_housebound.asp

Contact the VA to apply for benefits

Apply online at ebenefits.va.gov

Or

Find your VA Regional Office: 

www.va.gov/directory/guide/home.asp
Federal Trade Commission

consumer.ftc.gov

September 2013