What You Need to Know About Veterans Disability Settlement

The VA program compensates for disability based on loss of earning capacity. This system is different from workers' compensation.

Jim received a lump sum settlement. The VA will annually increase the lump sum over one year. This will offset his Pension benefit. He can only reapply after the annualized amount has been returned to him.

Compensation

Veterans and their families could be eligible for compensation from the government for firm injuries suffered during their military service. These benefits can be in the form of a pension or disability payment. When considering a personal-injury lawsuit or settlement on behalf of a disabled veteran there are some key points to consider.

If a veteran who has a disability receives a settlement or jury award against the party who was at fault for their injuries and has a VA disability claim and is awarded a settlement or award, the amount of that settlement or award can be taken from their VA payments. However, there are a few limitations to this type of garnishment. First an application to the court must be filed to apportion the funds. In the end, only a portion of the monthly salary can be garnished, usually between 20 and 50 percent.

It is important to note that compensation is not based on the actual earnings of a veteran instead, it is based on an amount. This means that the greater the disability rating of a veteran, the more they will receive in compensation. The spouses and dependent children of a deceased veteran from service-related illness or injury are eligible for a specific compensation called Dependency Indemnity Compensation.

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

Pensions

Veterans Disability Pension (VDP) is an income tax-free monetary benefit for veterans with disabilities that were acquired or worsened by their service in the military. It is also available to survivors of spouses and dependent children. The pension rates are set by Congress and is based on amount of disability, the extent of disability, and whether there are dependents. The VA has regulations that define how assets are calculated to determine eligibility for pension benefits. The VA will not consider the veteran's vehicle, home and personal belongings. However, the remaining non-exempt assets of the veteran must be less than $80.000 to demonstrate financial need.

It is widely believed that the courts can garnish VA disability payments to satisfy court-ordered child support or maintenance obligations for spouses. It is important to know that this is not true.

The courts are only able to garnish the veteran's pension when they have waived their military retired pay to receive compensation for disability. The statute that governs this is 38 U.S.C SS5301(a).

This is not the case for CRSC and TDSC, as these programs were specifically designed to provide a higher amount of income to disabled veterans. It is also important to know that an individual's personal injury settlement may reduce their eligibility for Aid and Attendance.

SSI

If a veteran is not earning earned income and has permanent disabilities or permanent disability, they could be eligible for Supplemental Security Income (SSI). This program is based on the need. A person must have a low income and assets to be eligible for SSI. Some individuals may also be eligible to receive an VA monthly pension. The amount is contingent on the length of their service and wartime period as well as their disability rating.

Most veterans are not eligible for firm a Pension and Compensation benefit simultaneously. If a person has pension benefits and is receiving disability benefits from the VA and is eligible for a disability payment, the VA will not pay the Supplemental Security Income benefit to the person.

The VA must report to the Social Security Administration your monthly military retirement, CRDP, or CRSC. This usually results in an increase in your SSI benefit. SSA may also benefit from the VA waiver of benefits to calculate your SSI income.

If a veteran is required to pay a support amount by an order from a judge, 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 his retirement benefits to receive VA disability payments. The U.S. Supreme Court ruled in the recent case Howell that this practice was against federal law.

Medicaid

Veterans with disabilities that are related to their service may be eligible for Medicare and Medicaid. He must prove that he's in the look-back period, which is five years. Additionally, he has to present documents to confirm his citizenship. He cannot transfer assets without the fair market value, however, he is able to keep his primary residence and one vehicle. He can keep up $1500 in cash or the face amount of a life-insurance policy.

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

The VA disability compensation is determined by the severity of the condition. It is calculated based on a chart that ranks the severity the condition. It could range from 10 percent to 100 percent. Higher ratings will bring more money. It is also possible for veterans to receive additional compensation for aid and attendance expenses, or for special monthly payments that are not based on a calendar but upon the severity of the disability.