The VA counts your Net Worth for qualifying purposes as the net value of the assets of the surviving spouse and his or her children. It includes such assets as bank accounts, stocks, bonds, mutual funds and any property other than the surviving spouse’s residence and a reasonable lot area. There is no set limit on how much net worth a surviving spouse and his or her children can have, but net worth cannot be excessive. The decision as to whether a claimant’s net worth is excessive depends on the facts of each individual case. All net worth should be reported and VA will determine if a claimant’s assets are sufficiently large that the claimant could live off these assets for a reasonable period of time.
Assets held under separate tax ID (EIN) are not counted in the veteran’s assets. Assets can be transferred into Exempt Assets prior to application submission to the VA without concern for a look-back period. Assets in a Grantor Irrevocable Trust (GIT) or Grantor Annuity Trust (GAT) are not counted for VA qualification purposes. The primary reason to place the assets in a GAT is because the GIT/GAT has to file a tax return on any reported income. To avoid this additional expense the Trust purchases tax deferred annuities.