EXHIBIT N
SAMPLE NET WORTH FORMULA NO. 2
AGE
VA LIFE
EXPECTANCY
65
16.4 years
196.8 months
72
82
88
95
12 years
144 months
ESTIMATED MAXIMUM
NET WORTH
(WITHOUT/WITH
BENEFITS)
MONTHLY INCOME SHORTFALL
(WITHOUT/WITH BENEFITS)
x
$1,500
=
$295,200
x
$387
=
$76,161.60
x
$1,500
=
$216,000
x
$387
=
$55,728
x
$1,500
=
$126,000
x
$387
=
$32,508
x
$1,500
=
$90,000
x
$387
=
$23,220
x
$1,500
=
$54,000
x
$387
=
$13,932
7 years
84 months
5 years
60 months
3 years
36 months
(1)
“Estimated Maximum Net Worth”: Results derived from such formulas are incomplete
because they do not account for asset liquidity, the cost of living in the claimant’s geographic area,
and other factors generally included in the VA’s "reasonableness" test. Moreover, VA caseworkers
generally run two sets of calculations. The first compares monthly income and expenses to see how
fast the claimant would spend down his or her assets without Pension benefits. If the claimant
passes, the second calculation compares how fast he or she would spend down assets with Pension
benefits because sometimes claimant’s go from having a monthly income deficit to a monthly
income surplus if VA pension are granted.1
(2)
“With Benefits”: Assumes the maximum rate of $1,113 for a surviving spouse without
dependents who requires Aid & Attendance.
1
E-mail exchange with Pension caseworker at Philadelphia VA Regional Office & Insurance Center, February 25,
2011 (contained in author’s personal files).