In AARP Magazine's Oct. 2010 issue, author Sid Kirchheimer discusses how groups of financial planners with patriotic-sounding names promise elderly veterans or their widows 100 percent success with claims for little-known Department of Veteran Affairs (VA) benefits. In the article, entitled "Taking Aim at Old Soldiers," Kirchheimer describes how these so-called advocacy groups are really unscrupulous businessmen and women selling investment tools to help claimants meet VA eligibility requirements for the benefits of pension or aid and attendance.

A special agent of the Seattle regional Inspector General's office described these schemes as being unethical at best and frequently criminal. The Washington State Attorney General's office has received many complaints put on file against these businesses; one agent in particular works in DuPont.

The VA's pension program is designed to keep a wartime veteran (or widow) from going below the poverty level. A higher level of benefit is aid and attendance, which is for the beneficiary when he or she needs skilled medical care after being granted a VA pension. Since these programs are based on financial need, these unscrupulous financial planners will sell investment plans to make the veteran look impoverished and thus eligible for these VA benefits. However, VA employees at the regional office call this "asset hiding." Kirchheimer further calls into question the quality of the products.

Retired Sgt. Maj. Paul Hardy, who has two master's degrees in business administration, strongly advises consumers never to purchase products from someone on a commission, but to use the services of a fee-based or single payment financial service. Agents on commission may try to sell the products that provide the highest return for themselves, which may be inappropriate for the buyer.

In the Joint Base Lewis-McChord area, there are frequent ads in the media for free seminars, given by these veterans' advocacy groups, at adult assisted-living facilities. But what they do not mention is the look-back period for the Social Security Administration (SSA) and the Internal Revenue Service (IRS). When veterans or widows are asked to purchase financial instruments to reposition their net worth from the VA, they often don't understand that doing so will most likely lead to conflict with SSA and IRS rules - which could lead to a denial of benefits or cause penalties. It could also jeopardize benefits should the VA discover the real financial worth of a veteran who repositioned his or her assets in order to receive VA money.

One of the giveaway characteristics, besides a very patriotic sounding name, for these unsavory "advocacy" groups that differentiates them from legitimate professionals helping veterans and the elderly is that they focus only on the two VA benefits that will benefit them financially. They will never look at a veteran or widow as a person who may have other issues that will allow the VA to provide better benefits.

For more information, call the VA at (800) 827-1000. It is generally least busy after 6 p.m. PST.