VA survivor pension and inheritance

[Lynn5255]

What is the name of your state? South Carolina
I receive VA Survivor Pension, and recently learned that I will receiving an inheritance from a relative who passed. I don't know how much it will be, but he didn't have much. Will this be considered as income that I have to report to the VA, or simply as an asset?
Thank you

 

[Taxing Matters]

What is the name of your state? South Carolina
I receive VA Survivor Pension, and recently learned that I will receiving an inheritance from a relative who passed. I don't know how much it will be, but he didn't have much. Will this be considered as income that I have to report to the VA, or simply as an asset?
Thank you

It appears to me that it is counted as income. The VA survivor's pension page links to the VA regulation defining income, 28 CFR § 3.271. That regulation says that payments of any kind are considered income unless excluded under § 3.272. Inheritances are not listed among the exclusions in that section. You can see the VA regulations on income here: improved pension regulations

You may want to contact VA and verify that. Note that you may disclaim your inheritance if needed to avoid a problem with the pension.

 

[adjusterjack]

That regulation says that payments of any kind are considered income unless excluded under § 3.272. Inheritances are not listed among the exclusions in that section.

True, but (just to clarify) 3.271(a)(3) includes an inheritance as income by citing it as an example of "nonrecurring income."

"(3) Nonrecurring income. Nonrecurring income means income received or anticipated on a one-time basis during a 12-month annualization period (e.g., an inheritance)."

Electronic Code of Federal Regulations (eCFR)

There is also an net worth limitation.

2021 VA Survivors Pension Benefit Rates | Veterans Affairs

Electronic Code of Federal Regulations (eCFR)

An influx of cash from an inheritance would be added to net worth as well as counted as income.

 

[Lynn5255]

It appears to me that it is counted as income. The VA survivor's pension page links to the VA regulation defining income, 28 CFR § 3.271. That regulation says that payments of any kind are considered income unless excluded under § 3.272. Inheritances are not listed among the exclusions in that section. You can see the VA regulations on income here: improved pension regulations

You may want to contact VA and verify that. Note that you may disclaim your inheritance if needed to avoid a problem with the pension.

Thank you