What You Need to Know About Veterans Disability Settlement

The VA program pays for disability due to loss of earning ability. This program differs from the workers' compensation programs.

Jim received a $100,000 lump sum settlement. The VA will annualize the lump sum for a year. This will offset his Pension benefit. The applicant can only apply for a second time after the annualized amount has been paid to him.

Compensation

Veterans and their families may be entitled to compensation from the government for injuries incurred during military service. These benefits could come 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 a few important points to consider.

For example in the event that disabled veterans receive an award in their case against the at-fault party that damages them and they also have a VA disability compensation claim and the amount of the settlement or Veterans Disability Lawsuits jury award can be taken from their VA payments. However, there are some limitations on this kind of garnishment. First an application to the court must be filed for the apportionment. Then only a certain percentage, usually between 20% and 50% of the monthly amount may be garnished.

Another thing to remember is that the compensation is determined by a percentage of a veteran's disabilities and not based on actual earnings from the job. The higher the disability rating, the greater compensation they will receive. The dependent children and spouses of a deceased veteran from service-related illness or injury are eligible for a specific compensation known as Dependency Indemnity Compensation.

There are a lot of misconceptions about the impact that benefits from veterans disability law firm' retirement along with disability pay and other compensations provided by the Department of Veterans Affairs have on divorce money issues. These misconceptions can make divorces even more difficult for both veterans and their families.

Pensions

Veterans Disability Pension (VDP) is an income tax-free benefit paid to veterans who have disabilities that were caused or worsened through their service in the military. The benefit is also accessible to spouses of those who have survived as well as children who have dependents. The pension rates are set by Congress and based on the amount of disability, the degree of disability, and if there are any dependents. The VA has specific regulations regarding how assets are evaluated to determine the eligibility of pension benefits. The VA will disregard the veteran's vehicle, home and personal effects. However the remaining non-exempt assets owned by the veteran must not exceed $80.000 to demonstrate financial need.

A common misconception is that the courts could garnish VA disability payments to accomplish court-ordered child or support obligations for spouses. It is important to note that this isn't the case.

The courts can only garnish the pension of a veteran if they have waived their military retired pay to obtain compensation for disability. 38 U.S.C. SS5301 (a) is the law that governs this.

This is not the case for CRSC and TDSC, as these programs were specifically created to provide a higher level of income for disabled veterans. It is important to know that a personal injury settlement could reduce their eligibility for aid and attendance.

SSI

If a veteran has no income from work and is suffering from an ongoing disability or permanent disability, they could be eligible for Supplemental Security Income (SSI). This is needs based program. A person must have a low income and assets to be eligible for SSI. Certain people are also eligible for a monthly pension payment from the VA. The amount is determined by the duration of service, wartime duration and disability rating.

Most veterans aren't eligible for both pension and compensation benefits simultaneously. If someone receives the disability payment as well as a pension from the VA the VA will not provide a Supplemental Security income benefit.

The VA is required to send your monthly report of military retirement, CRDP or CRSC to the Social Security Administration (SSA). This will nearly always increase your SSI benefit. SSA can also make use of the VA waiver of benefits in order to determine your SSI income.

If a veteran is ordered to pay support pursuant to an order issued by a court, the court may go directly to VA to levy the retirement benefits of the military. This could be the case in divorce proceedings when the retiree is required to waive his military retired pay for VA disability benefits. The U.S. Supreme Court ruled in the recent case Howell that such a practice violated federal laws.

Medicaid

Veterans with disabilities resulting from their service might be eligible for Medicare and Medicaid. He must prove that he has been able to meet the five year look-back period. He must also present documents to confirm his citizenship. He cannot transfer his assets without a fair market value, however, he is allowed to keep one car 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 may be considered income for purposes of calculation of post-divorce child custody and maintenance. The reason for this is that numerous court cases have affirmed the authority of family courts in using these payments to calculate support. These include decisions from Florida (Allen v. Allen), Mississippi (Steiner v. Steiner), and Wisconsin (In Re the marriage of Wojcik).

The amount of VA disability benefits is contingent on the degree of the condition that is service-connected. It is calculated based on an algorithm that rates the severity of the condition. It can be between 10 percent and 100 percent. Higher ratings will bring more money. Veterans may also be eligible for compensation for aid and attendance expenses or a monthly payment, which is not based on a set schedule and not on the extent of their disability.