Families often hear that a parent “has too much money” for VA pension. The real test is specific: a dollar limit on net worth, a list of what’s excluded, and a three-year review of transfers.
Here’s how it works for claims filed through November 30, 2026.
The 2026 net worth limit
From December 1, 2025, to November 30, 2026, the net worth limit for Veterans Pension and Survivors Pension is $163,69912. Net worth is the claimant’s assets plus annual income for VA purposes, including a spouse’s, and VA may subtract deductible expenses such as unreimbursed medical costs from that income13.
VA’s own example: $121,000 in assets plus $14,000 in annual income gives a net worth of $135,000, under the limit1. A dependent child whose own net worth exceeds the limit isn’t counted as a dependent1.
What counts and what doesn't
| Counted | Not counted |
|---|---|
| Bank accounts, stocks and bonds | Primary residence, with a lot up to 2 acres |
| Second homes, land, rental property | One vehicle |
| Boats, valuable collections | Basic household goods you wouldn't take if you moved |
| Proceeds from selling the home | The home stays excluded if the owner moves to a nursing home, care facility or a relative's home for care |
Source: VA pension rates page1; 38 CFR 3.2754.
VA doesn’t subtract a mortgage on the primary residence from assets, and any rental income from the home still counts as income4.
The 36-month look-back
When VA receives a pension claim, it reviews assets transferred in the 3 years before the claim. A transfer for less than fair market value that would have pushed net worth above the limit can bring a penalty period of up to 5 years, during which VA won’t pay pension15. Transfers into trusts and annuities are reviewed the same way5. Transfers made before October 18, 2018 aren’t penalized5.
How the penalty is calculated
VA divides the covered asset amount, the amount by which net worth would have exceeded the limit because of the transfer, by the monthly penalty rate, rounding down to whole months. The penalty rate is the Aid and Attendance maximum for a veteran with one dependent, divided by 12: $2,874 for claims in this period51. The penalty starts the first day of the month after the last transfer5.
Worked example
A surviving spouse has $110,000 in savings and $14,000 in income, so her net worth is $124,000, under the limit. In May 2026 she gave her son $60,000. Had she kept it, her net worth would have been $184,000, which is $20,301 over the $163,699 limit. Only that $20,301 is the covered amount, not the whole gift5.
$20,301 ÷ $2,874 = 7.06, rounded down to 7 months. The penalty runs June through December 2026. If she files in September 2026 and otherwise qualifies, VA treats her as entitled from December 31, with payments starting January 1, 20275.
VA vs. Medicaid look-backs
Medicaid has its own transfer rules and a separate look-back, set under federal and state law. A gift that clears VA’s 36-month window can still delay Medicaid nursing home coverage. If both programs might be needed, plan for both; see VA and Medicaid.
Exceptions to the transfer penalty
- Fraud or unfair sales practices. Assets transferred because of fraud or unfair marketing of financial products aren't penalized; a complaint filed with authorities at the time helps prove it5.
- Certain trusts for a child unable to self-support aren't treated as covered assets5.
- Transfers before October 18, 2018 are disregarded5.
Common mistakes
- Buying an annuity or trust from a pension seller, which can create a penalty; see pension poaching5.
- Counting the home. The primary residence and a lot of up to 2 acres generally don't count4.
- Not keeping records; VA may ask for tax transcripts, deeds and trust terms5.
How this interacts with other benefits
- VA health care: a veteran receiving pension is placed in priority group 5, and one receiving Aid and Attendance or Housebound in priority group 47.
- Travel pay: pension recipients can get VA travel pay, with the deductible waived89.
- Medicaid nursing home care: pension is generally reduced to $90 a month for a veteran without dependents in a Medicaid-covered nursing home10.
- Burial: a veteran receiving pension at death can qualify for VA burial and plot allowances11.