38 C.F.R. § 3.275

How VA determines the asset amount for pension net worth determinations

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(a) Definitions pertaining to assets—(1) Assets. The term assets means the fair market value of all property that an individual owns, including all real and personal property, unless excluded under paragraph (b) of this section, less the amount of mortgages or other encumbrances specific to the mortgaged or encumbered property. VA will consider the terms of the recorded deed or other evidence of title to be proof of ownership of a particular asset. See also § 3.276(a)(4), which defines “fair market value.”

(2) Claimant. (i) Except as provided in paragraph (a)(2)(ii) of this section, for the purposes of this section and § 3.276, claimant means a pension beneficiary, a dependent spouse, or a dependent or potential dependent child as described in § 3.274(d), as well as a veteran, surviving spouse, or surviving child pension applicant.

(ii) For the purpose of paragraph (b)(1) of this section, claimant means a pension beneficiary or applicant who is a veteran, a surviving spouse, or a surviving child.

(3) Residential lot area. For purposes of this section, residential lot area means the lot on which a residence sits that does not exceed 2 acres (87,120 square feet), unless the additional acreage is not marketable.

(b) Exclusions from assets. Assets do not include the following:

(1) Primary residence. The value of a claimant's primary residence (single-family unit), including the residential lot area, in which the claimant has an ownership interest. VA recognizes one primary residence per claimant. If the residence is sold after pension entitlement is established, any net proceeds from the sale is an asset except to the extent the proceeds are used to purchase another residence within the same calendar year as the year in which the sale occurred.

(i) Personal mortgage not deductible. VA will not subtract from a claimant's assets the amount of any mortgages or encumbrances on a claimant's primary residence.

(ii) Claimant not residing in primary residence. Although rental income counts as annual income as provided in § 3.271(d), VA will not include a claimant's primary residence as an asset even if the claimant resides in any of the following as defined in § 3.278(b):

(A) A nursing home or medical foster home;

(B) A care facility other than a nursing home; or

(2) Personal effects. Value of personal effects suitable to and consistent with a reasonable mode of life, such as appliances and family transportation vehicles.

(3) Radiation Exposure Compensation Act payments. Payments made under section 6 of the Radiation Exposure Compensation Act of 1990.

(Authority: 42 U.S.C. 2210 (note))

(4) Ricky Ray Hemophilia Relief Fund payments. Payments made under section 103(c) and excluded under section 103(h)(2) of the Ricky Ray Hemophilia Relief Fund Act of 1998.

(Authority: 42 U.S.C. 300c-22 (note))

(5) Energy Employees Occupational Illness Compensation Program payments. Payments made under the Energy Employees Occupational Illness Compensation Program.

(Authority: 42 U.S.C. 7385e(2))

(6) Payments to Aleuts. Payments made to certain Aleuts under 50 U.S.C. App. 1989c-5.

(Authority: 50 U.S.C. App. 1989c-5(d)(2))

(7) Statutory exclusions. Other amounts excluded from assets by statute. See § 3.279. VA will exclude from assets any amount designated by statute as not countable as a resource, regardless of whether or not it is listed in this section or in § 3.279.

(Authority: 38 U.S.C. 1522, 1543) [83 FR 47271, Sept. 18, 2018]

Notes of Decisions

Cited in 5 cases (1 in the last 5 years), 2007–2023 · leading case: Richard B. Osborn Appellant v. R. James Nicholson, 21 Vet. App. 223 (Vet. App. 2007).

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Richard B. Osborn Appellant v. R. James Nicholson, 21 Vet. App. 223 (Vet. App. 2007). · cites it 4× “See 38 C.F.R. § 3.275 (b) (2006) ("The terms 4 corpus of estate and net worth mean the market value, less mortgages or other encumbrances, of all real and personal property owned by the claimant.”

190426-44622 (Board of Vet. App. 2019). · cites it 2× “The Veteran has the following assets, income, and expenditures: Assets Bank Account $31,909 Orosco Irrevocable Trust $200,000 Income Social Security (Veteran) $1,823 Social Security (Spouse) $743 Local 12 OP Eng Pension $926 Rock and Sand $1,384 Expenditures Medicare (Veteran)…”

191127-53170 (Board of Vet. App. 2020). · cites it 2× “See 38 C.F.R. § 3.275 (b)(1). (Continued on the next page) The Board finds that the appellant did not provide adequate information to demonstrate her net worth.”

200312-71469 (Board of Vet. App. 2020). · cites it 2× “Under 38 C.F.R. § 3.275 (a)(1), assets mean the fair market value of all property an individual owns, including all real and personal property, unless excluded.”

Gloria J. Greer v. Denis McDonough (Vet. App. 2023). · cites it 2× “; see 38 C.F.R. § 3.275 (b) (2018). And whether it is reasonable that some part of a veteran's estate should be consumed for his maintenance includes consideration of the veteran's income, the feasibility of converting property into cash without substantial sacrifice, the…”

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