BILL ANALYSIS �
SB 180
Page 1
SENATE THIRD READING
SB 180 (Corbett)
As Amended May 3, 2011
Majority Vote
SENATE VOTE :40-0
VETERANS AFFAIRS 9-0
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|Ayes:|Cook, Pan, Atkins, Block, | | |
| |Nielsen, V. Manuel P�rez, | | |
| |Williams, Yamada, Beth | | |
| |Gaines | | |
| | | | |
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SUMMARY : Adds to the definition of "public social services" those
activities and functions administered or supervised by the United
States Department of Veterans Affairs (USDVA) and the California
Department of Veterans Affairs (CDVA).
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS : The USDVA Aid and Attendance program has asset and income
limits for eligibility. A couple must neither have assets that
exceed $80,000, excluding a residence, nor an income of more than
$1,900 a month to be eligible. So-called "financial advisors"
target those with too much wealth to qualify for this benefit. They
often counsel them to place their assets into irrevocable trusts and
or deferred annuities, effectively separating them from their assets
in the event of a future need. These advisors often charge large
fees for their services.
According to the author:
The Aid and Attendance Program administered by the federal
Veterans Administration (VA) is a safety net for low wealth
veterans and their spouses who cannot afford to pay for
medical supplies or in-home healthcare. ?
Financial predators target high wealth veterans who
otherwise would not qualify for the �Aid and Attendance
Program] and counsel them how to move their assets into
SB 180
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'safe harbors' such as irrevocable trusts and deferred
annuities. These advisors charge $10,000 or even more for
their services. ?
SB 180 prohibits anyone from charging an unreasonable fee
for assisting a person to qualify for a federal pension
benefit program, such as Veterans Aid and Attendance. SB
180 diminishes the incentive of financial advisors who
counsel seniors to artificially impoverish themselves to
qualify for a government benefit.
This bill will discourage the practices of charging an unreasonable
fee and preying upon veterans and their families. In addition it
will discourage the highly ethically and legally questionable
practice of artificial impoverishment in order to obtain a
government benefit to which the recipient would not otherwise be
entitled.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550 FN:
0001445