HR 2189 RFS
‘‘(E) The number of months calculated under this 
subparagraph shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of the portion of covered resources so disposed of by 
the surviving spouse on or after the look-back date 
described in subparagraph (C)(i) that the Secretary 
determines would reasonably have been consumed 
for the surviving spouse’s maintenance; divided by 
‘‘(ii) the maximum amount of monthly pension 
that is payable to a surviving spouse under section 
1541 of this title, including the maximum amount of 
increased pension payable under such section on ac-
count of a child, but not including any amount of 
pension payable under such section because a sur-
viving spouse is in need of regular aid and attend-
ance or is permanently housebound, 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months. 
‘‘(F) In the case of a transfer by the surviving spouse 
during the veteran’s lifetime that resulted in a period of 
ineligibility for the veteran under section 1522 of this title, 
the Secretary shall apply to the surviving spouse any re-
maining ineligibility for that period.’’; and 
(C) by adding at the end the following new 
paragraph: 
VerDate Mar 15 2010 
22:32 Oct 29, 2013
Jkt 039200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H2189.RFS
H2189
tkelley on DSK3SPTVN1PROD with BILLS
HR 2189 RFS
‘‘(4)(A) If a surviving spouse otherwise eligible for 
payment of increased pension under subsection (c), (d), 
or (e) of section 1541 of this title on account of a child 
or the child disposes of covered resources for less than fair 
market value on or after the look-back date described in 
subparagraph (C)(i), the Secretary shall deny or dis-
continue payment of such increased pension for months 
during the period beginning on the date described in sub-
paragraph (D) and equal to the number of months cal-
culated as provided in subparagraph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the child that the Secretary considers that 
under all the circumstances, if the surviving spouse or the 
child had not disposed of such resource, it would be rea-
sonable that the resource (or some portion of the resource) 
be consumed for the child’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
the amount in the corpus of the estate of the child that 
the Secretary considers, under all the circumstances, 
VerDate Mar 15 2010 
22:32 Oct 29, 2013
Jkt 039200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H2189.RFS
H2189
tkelley on DSK3SPTVN1PROD with BILLS
HR 2189 RFS
would be reasonable to be consumed for the child’s mainte-
nance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the surviving spouse applies for payment of in-
creased pension under subsection (c), (d), or (e) of section 
1541 of this title on account of a child or, if later, the 
date on which the surviving spouse (or the child) disposes 
of covered resources for less than fair market value. 
‘‘(D) The date described in this subparagraph is the 
first day of the first month in or after which covered re-
sources were disposed of for less than fair market value 
and which does not occur in any other period of ineligi-
bility under this paragraph. 
‘‘(E) The number of months calculated under this 
clause shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of the portion of covered resources so disposed of by 
surviving spouse (or the child) on or after the look- 
back date described in subparagraph (C)(i) that the 
Secretary determines would reasonably have been 
consumed for the child’s maintenance; divided by 
VerDate Mar 15 2010 
22:32 Oct 29, 2013
Jkt 039200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H2189.RFS
H2189
tkelley on DSK3SPTVN1PROD with BILLS
HR 2189 RFS
‘‘(ii) the maximum amount of increased month-
ly pension that is payable to a surviving spouse 
under subsection (c), (d), or (e) of section 1541 of 
this title on account of a child, 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months.’’; 
(2) in subsection (b)— 
(A) by inserting ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If a child otherwise eligible for payment of 
pension under section 1542 of this title or any person with 
whom such child is residing who is legally responsible for 
such child’s support disposes of covered resources for less 
than fair market value on or after the look-back date de-
scribed in subparagraph (C)(i), the Secretary shall deny 
or discontinue the payment of pension to such child under 
section 1542 of this title for months during the period be-
ginning on the date described in subparagraph (D) and 
equal to the number of months calculated as provided in 
subparagraph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the child or the corpus of the estate of any 
VerDate Mar 15 2010 
22:32 Oct 29, 2013
Jkt 039200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H2189.RFS
H2189
tkelley on DSK3SPTVN1PROD with BILLS
HR 2189 RFS
person with whom such child is residing who is legally re-
sponsible for such child’s support that the Secretary con-
siders that under all the circumstances, if the child or per-
son had not disposed of such resource, it would be reason-
able that the resource (or some portion of the resource) 
be consumed for the child’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
the amount in the corpus of the estate described in clause 
(i) that the Secretary considers, under all the cir-
cumstances, would be reasonable to be consumed for the 
child’s maintenance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the child applies for pension under section 1542 of 
this title or, if later, the date on which the child (or person 
described in subparagraph (B)) disposes of covered re-
sources for less than fair market value. 
VerDate Mar 15 2010 
22:32 Oct 29, 2013
Jkt 039200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H2189.RFS
H2189
tkelley on DSK3SPTVN1PROD with BILLS
HR 2189 RFS
‘‘(D) The date described in this clause is the first 
day of the first month in or after which covered resources 
were disposed of for less than fair market value and which 
does not occur in any other period of ineligibility under 
this paragraph. 
‘‘(E) The number of months calculated under this 
clause shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of the portion of covered resources so disposed of by 
the child (or person described in subparagraph (B)) 
on or after the look-back date described in subpara-
graph (C)(i) that the Secretary determines would 
reasonably have been consumed for the child’s main-
tenance; divided by 
‘‘(ii) the maximum amount of monthly pension 
that is payable to a child under section 1542 of this 
title, 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months.’’; 
and 
(3) by adding at the end the following new sub-
sections: 
‘‘(c)(1) The Secretary shall not deny or discontinue 
payment of pension under section 1541 or 1542 of this 
title or payment of increased pension under subsection (c), 
VerDate Mar 15 2010 
22:32 Oct 29, 2013
Jkt 039200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H2189.RFS
H2189
tkelley on DSK3SPTVN1PROD with BILLS