There currently is no look-back, but VA has proposed new regulations under which a three-year look-back would apply to transfers of non-exempt assets. Of particular concern is the fact that the proposed rules do not provide for grandfathering transfers made prior to the effective date of the rules. Therefore, veterans and surviving spouses who purchased annuities or made innocent gifts to family members (for college tuition, a car, a down-payment on a house, or any other reason) could face a lengthy penalty period of up to ten years upon applying for benefits. The new rules also change the amount of exempt assets and the types of medical expenses that can reduce countable income to qualify. Now, more than ever, it is critical to develop individualized strategies based on both Medicaid and VA Aid and Attendance rules to provide the most valuable benefits when you need them.