Applicants (or applicants and their spouses) are not eligible for V.A. Aid and Attendance benefits if they have a net worth in excess of $80,000. At present there is no look-back period for asset transfers, as there is for Medicaid benefits, which have a five-year look-back.
I noted in prior posts that a V.A. look-back period could be on the horizon. My April 2014 post reported the Senate's failure to pass SB 1982, which would have established a three-year look-back. I also warned that the V.A. has the authority to amend its regulations without going through Congress. And that is what is happening now.
The January 23, 2015 Federal Register includes a proposal by the V.A. to establish, among other regulations, a three-year look-back for transfers, and corresponding penalty periods during which V.A. pension would not be available, even if the veteran qualifies in all other respects. You can read the proposal here. Comments on the proposal are due by March 24, 2015.