What You Need to Know About Veterans Disability Settlement

The VA program compensates for disability by calculating the loss of earning capacity. This program differs from the workers' compensation programs.

Jim received a lump-sum settlement of $100,000. The VA will annualize the lump sum for one year. This will reduce his Pension benefit. He will not be able to reapply for his Pension benefit after the annualized amount has been returned to him.

Compensation

Veterans and their families could be entitled to compensation by the government in case of injuries sustained while serving in military. These benefits can be the form of a disability or pension. There are a few important aspects to consider when considering a personal injury lawsuit, or settlement for a disabled veteran.

For instance when a disabled veteran receives an award in their legal case against the at-fault person who caused their injuries and they also have a VA disability compensation claim, the amount of the settlement or jury award could be taken from their VA payments. This kind of garnishment is subject to certain restrictions. First the court petition must be filed for the apportionment. Then only a portion of between 20% and 50 percent of the monthly amount may be garnished.

Another thing to note is that the compensation is determined by a percentage of the disability of a veteran and not on the actual earnings from working. The higher the disability rating, the more money they'll get. Family members of survivors of a disabled veteran who died from service-related illness or injuries can be eligible for a unique benefit known as Dependency Insurance Compensation (DIC).

There are many misconceptions about the impact that veterans' retirement benefits as well as disability payments and other compensations provided by the Department of Veterans Affairs have on divorce issues involving money. These misconceptions can make a divorce even more difficult for veterans and their families.

Pensions

Veterans Disability Pension is a tax-free benefit that is paid to veterans with disabilities incurred or aggravated by military service. The benefit is also available to spouses who have survived as well as children who have dependents. The pension rate is determined by Congress and is based on the amount of disability, the degree of disability, and whether there are dependents. The VA has regulations that specify the method of calculating assets to determine eligibility for Pension benefits. The VA will disregard the veteran's home, vehicle and personal effects. However the remaining non-exempt assets owned by the veteran must be less than $80.000 to prove financial need.

It is widely believed that the courts are able to garnish VA disability payments to satisfy court-ordered child support or Veterans Disability maintenance obligations for spouses. It is crucial to understand that this is not the case.

The courts are only able to garnish a pensioner's pension in the event that they have renounced their military retirement pay to be able to claim the compensation they deserve for the disability. 38 U.S.C. (a) SS5301 (a) is the statute that governs this.

This does not apply to CRSC and TDSC These programs were specifically designed to provide a greater amount of income to disabled veterans. It is important to remember, too, that a veteran’s personal injury settlement can affect their eligibility for aid and attendance.

SSI

Veterans who have a permanent disability but have no income might be eligible for Supplemental Security Intake (SSI). This program is based on the need. A person 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 contingent on the length of their service and wartime period as well as disability rating.

Most veterans do not qualify to receive both Compensation and Pension benefits at the same time. If a person is eligible for a disability payment and a pension from the VA but it does not pay them a Supplemental Security income benefit.

The VA has to report to the Social Security Administration your monthly military retirement, CRDP, or CRSC. This will almost always result in an increase in your SSI benefit. The SSA can also determine your SSI income using the VA waiver benefits.

If a veteran is required to pay support pursuant to a court order, the court may go directly to VA to garnish the military retirement. This can happen in divorce cases where the retiree has to give up their military retirement pay in exchange for their VA disability payments. The U.S. Supreme Court ruled recently in the case Howell that such a practice was in violation of federal law.

Medicaid

A veteran who has a disability that is related to service could be eligible for Medicare and Medicaid benefits. He must prove that he has met the five-year look-back period. Additionally, he needs to provide proof to prove his citizenship status. He is not able to transfer his assets without a fair market value, however, he can keep one vehicle and his primary residence. He can keep up $1500 in cash or the face amount of a life-insurance policy.

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

The amount of the VA disability compensation is contingent upon the degree of the condition that is service-connected. It is determined by a schedule that rates the severity of the condition. It can range from 10 percent to 100 percent and higher ratings bringing the most money. Veterans could also be eligible to receive additional compensation for aid and attendance costs or a special monthly payment that is based not on a calendar or a timetable, but rather on the severity of their disability.