I know once proceeds of house hits Dad's bank account, Aid&Attendance is over. But as my father always planned to give the proceeds to my disabled brother, could he continue or would he have to re-apply for Aid & Attendance? Would gifting to a disabled child incur a Penalty from the VA or no? Thank you!
Seems as though it's the former?
I've never seen a question on gifting as it might affect VA Aide & Attendance. I think this is a question for someone at the VA to make sure that you get the right answer and don't jeopardize any benefits.
1. The sudden influx of brother's income will stop his low income benefits until he spends it all down.
2. The missing proceeds will trigger a gift penalty for Dad. You will have no way to pay it back.