Answer:  The VA will accept a personal services contract and the fees paid under the contract are permissible, deductible medical expenses to reduce income for VA purposes (as long as the claimant has been rated in need of aid and attendance).  I don’t do lump sum personal services contracts for VA purposes, but imagine it could be done to reduce the assets.  Must be very careful; however, as to how it is claimed as medical deductions vs. annual income when doing a lump sum arrangement vs. monthly payments under the contract.

Victoria L. Collier, Attorney at Law
Collier & St. Clair, LLP
Decatur, Georgia  30030

“Will the VA Accept a Personal Services Contract?” was last modified: May 3rd, 2018 by Phil Sanders