Net worth
(1) Net worth. Net worth means the sum of a claimant's or beneficiary's assets and annual income. (2) Asset calculation. VA will calculate a claimant's or beneficiary's assets under this section and 3.275. (3) Annual income calculation. VA will calculate a claimant's or beneficiary's annual income under 3.271, and will include the annual income of dependents as required by law. See 3.23(d)(4), 3.23(d)(5), and 3.24 for more information on annual income included when VA calculates a claimant's or beneficiary's pension entitlement rate. In calculating annual income for this purpose, VA will subtract all applicable deductible expenses, to include appropriate prospective medical expenses under 3.272(g). (4) Example of net worth calculation. For purposes of this example, presume the net worth limit is $123,600. A claimant's assets total $117,000 and annual income is $9,000. Therefore, adding the claimant's annual income to assets produces net worth of $126,000. This amount exceeds the net worth limit.