What is the VA Look Back Period?
VA Net Worth & Look-Back Rule – Quick Facts
$159,240 (Dec. 1, 2024 – Nov. 30, 2025), including assets and annual income for both the Veteran and their spouse.
36 months before application—asset transfers or below-market sales during this time may trigger penalties.
Penalties can mean up to 5 years of VA pension ineligibility; the period is based on the amount over the net worth limit.
Yes—returning all or part of the transferred assets before or shortly after determination can reduce or eliminate penalties.
Yes—gifts that never placed net worth over the limit, transfers to a disabled child’s trust, or fair-market purchases of exempt items.
Yes—non-liquid annuities that reduce net worth over the limit violate the rule; liquid annuities count fully as assets.
What is the VA Net Worth Limit?
The VA caps net worth at $159,240 for the period Dec. 1, 2024 – Nov. 30, 2025. This limit rises annually with Social Security adjustments and includes:
- Countable assets: bank accounts, investments, extra real estate.
- Annual income: calculated monthly income × 12.
- Both the Veteran’s and spouse’s assets and income.
Exempt assets include a primary home (up to 2 acres), household goods, one vehicle, and personal items. Unreimbursed Medical Expenses (UMEs) above 5% of MAPR can be deducted from income to help meet the limit.
What is the VA Look-Back Rule?
The VA reviews all asset transfers for the 36 months prior to a pension application to ensure applicants didn’t gift or sell assets below market value to qualify. Only transfers after Oct. 18, 2018, are considered. Gifts that wouldn’t have placed net worth above the limit are not violations.
What happens if I violate the Look-Back Rule?
Violations result in a Penalty Period—months without pension eligibility—calculated by dividing the amount over the limit by the Aid & Attendance MAPR for a Veteran with a dependent ($33,548/year or $2,795/month for 2025). Fractions are rounded down.
Example: If $10,760 is over the limit, divide by $2,795 = 3.84, rounded down to 3 months of ineligibility.
Can the Penalty Period be reversed?
Yes—if all or part of the transferred assets are returned before applying or within 60 days of VA’s penalty determination, the ineligibility period may be reduced or eliminated.
Are there exceptions to the Look-Back Rule?
- Gifts that never caused net worth to exceed the limit.
- Transfers into a trust for a disabled child (meeting VA’s criteria).
- Spending down assets on exempt items like medical care, burial plans, a vehicle, or a vacation.
How do annuities affect VA pension eligibility?
Before Oct. 18, 2018, annuities were a common way to reduce countable assets. Under current rules:
- Non-liquid annuities that lower net worth above the limit violate the rule.
- Liquid annuities are counted in full as assets.
- Required retirement annuities don’t violate the rule, but payments count as income.
Do these rules apply to pending applications?
No—transfers before Oct. 18, 2018, do not count toward the Look-Back Period, even if within 36 months. Applications submitted before this date are unaffected.
