11 "Faux Pas" You re Actually Able To Make With Your Veterans Disability Compensation

What You Need to Know About Veterans Disability Settlement

The VA program provides compensation for disability on the basis of loss of earning capacity. This system is different from the workers' compensation programs.

Jim received a lump-sum settlement of $100,000. The VA will annually increase the lump amount over the course of one year. This will reduce his Pension benefit. He is only eligible to apply again after the annualized amount has been paid to him.

Compensation

Veterans and their families may be entitled to compensation by the government for injuries sustained while serving in the military. These benefits may be in the form of a pension or disability payment. There are a few essential things to think about when considering the possibility of a personal injury lawsuit or settlement for disabled veterans.

For instance when the disabled veteran receives an award in their legal case against the at-fault person who caused their injuries and also has a VA disability compensation claim, the amount of the settlement or jury award can be withdrawn from VA payments. However, there are certain limitations on this type of garnishment. First the court must have filed a petition seeking apportionment of the disability pay. Then only a portion, usually between 20 and 50 percent of the monthly amount may be garnished.

It is also important to remember that compensation is based not on the actual earnings of a veteran instead, it is based on an amount. The higher the disability rating the more money they'll get. The dependent children and spouses of a deceased veteran from service-related illness or injury are eligible for a particular payment called Dependency Indemnity Compensation.

There are a myriad of misconceptions regarding the impact that veterans' retirement benefits as well as disability payments and other benefits from the Department of Veterans Affairs have on money issues in divorce. These misconceptions can make a divorce even more difficult for veterans disability lawsuits and their families.

Pension

Veterans Disability Pension is a tax free monetary benefit that is paid to veterans suffering from disabilities that were incurred or aggravated through military service. It is also available to survivors of spouses and dependent children. The pension rates are set by Congress and is based on the amount of disability, the severity of disability, and whether there are any dependents. The VA has specific regulations on how assets are analyzed to determine eligibility for the pension benefit. The VA will not take into consideration the veteran's home, vehicle and personal belongings. However the remaining non-exempt assets owned by the veteran must not exceed $80.000 to demonstrate financial need.

It is a common misconception that courts are able to garnish VA disability payments to pay court-ordered child support or the obligation to pay spousal maintenance. However, it is important to understand that this is not the case.

The courts can only take a veteran's pension away if they have waived their military retired pay in order to receive an amount of compensation for a disability. The law that governs this is 38 U.S.C SS5301(a).

It is important to know that this does not apply to CRSC or TDSC pay, as these programs are specifically designed to provide a higher amount of income for disabled veterans. It is also important to note that a veteran's personal injury settlement might affect their eligibility for aid and attendance.

SSI

If a veteran is not earning earned income and has a permanent disability they could be eligible for Supplemental Security Income (SSI). This is a needs-based program. The applicant must have a low income and assets to be eligible for SSI. Some are also eligible for an annual pension from the VA. The amount is determined by the duration of service, wartime period and disability rating.

Most veterans are not qualified to receive both a Pension and Compensation benefit at the same time. If someone receives the disability payment as well as pension benefits from the VA the VA will not pay a Supplemental Social Security income benefit.

The VA must inform the Social Security Administration your monthly military retirement, CRDP, or CRSC. This will almost always result in an increase in your SSI benefit. SSA can also make use of the VA waiver of benefits in order to calculate your SSI income.

If a judge requires that a veteran pay support ordered by the court, the court can go directly to the VA and request that the military retirement funds seized to pay for this reason. This can occur in divorce cases when the retiree has to give up his retirement benefits to receive VA disability benefits. The U.S. Supreme Court ruled recently in the case Howell that such a practice violated federal laws.

Medicaid

A veteran who has an impairment that is connected to service may be eligible for Medicare and Medicaid benefits. He must prove that he has the look-back period, which is five years. Also, he must provide documentation to prove his citizenship status. He cannot transfer assets without the fair market value, but he can still keep his primary residence and a vehicle. He also has the option of keeping up to $1,500 in cash or the face value of the life insurance policy.

In a divorce, the judge could decide that the veteran's VA disability payments may be considered income for the purposes of formulating post-divorce child care and maintenance. The reason for this is that numerous court decisions have confirmed the legality of family courts in using these payments to calculate support. These include decisions from Florida, Mississippi (Steiner v. Steiner), Wisconsin (In re the marriage of Wojcik), and other states.

The VA disability compensation is based on the severity of the condition. It is calculated based on an algorithm which ranks the severity of the condition. It could vary from 10 percent to 100 percent and higher ratings bringing the most money. It is also possible for a veteran to receive additional compensation for attendance and aid expenses, or a special monthly payments, which are not based on a calendar but upon the severity of the disability.