What You Need to Know About Veterans Disability Settlement

The VA program pays compensation for disability based upon loss of earning capacity. This system differs from the workers' comp programs.

Jim received a lump sum settlement. The VA will annualize the lump sum for a year. This will offset his Pension benefit. He will only be eligible to reapply for his Pension benefit once the annualized amount is returned to him.

Compensation

Veterans and their families could be eligible for compensation from the government for injuries they sustained during their military. The benefits are usually the form of disability or pension. If you're thinking about a personal injury lawsuit or settlement on behalf of a disabled veteran there are a few key aspects to consider.

For instance If the disabled veteran receives an award in their case against the at-fault person who caused their injuries and also has an VA disability compensation claim, the amount of the settlement or jury award can be withdrawn from VA payments. This kind of garnishment is subject to certain limitations. First, the court must have filed a petition seeking apportionment of disability pay. In the end, only a portion of the monthly compensation may be garnished, generally between 20-50 percent.

Another thing to keep in mind is that the compensation is dependent on a percentage of a veteran's disabilities and not based on actual earnings from the job. The higher the disability rating the more compensation they'll receive. The dependent children and spouses of a veteran who passed away due to injury or illness caused by service can be eligible for a special compensation known as Dependency Indemnity Compensation.

There are a myriad of misconceptions regarding the impact of veterans' pension benefits and disability benefits, as well as other compensations from the Department of Veterans Affairs on money issues during divorce. These myths can make divorce even more difficult for both veterans and their families.

Pension

Veterans Disability Pension is a tax-free monetary benefit that provides veterans suffering from disabilities that were incurred or aggravated through military service. It is also available to the surviving spouses and dependent children. Congress sets the pension rate, which is based on the level of disability, the degree of disability and dependents. The VA has regulations that govern how assets are calculated in order to determine eligibility for Pension benefits. Generally, the veteran's house or personal effects as well as a vehicle are not considered, and the remaining non-exempt assets of the veteran must be less than $80,000 to show financial need.

It is a common misconception that courts are able to garnish VA disability payments to meet court-ordered child support or obligations to maintain spousal support. It is vital to recognize that this isn't the case.

The courts can only take away the pensions of veterans if they have waived their military retirement pay to receive compensation for disability. The law that governs this is 38 U.S.C SS5301(a).

It is important to understand that this is not applicable to CRSC or TDSC pay, since these programs are specifically designed to provide a higher level of income for disabled veterans. It is also important to keep in mind that any personal injury settlement for veterans might affect their eligibility for Aid and Attendance.

SSI

Veterans with a permanent disability but have no income may be eligible for Supplemental Security Intake (SSI). This is needs based program. One must have a low income and assets to be eligible for SSI. Some people may also be eligible to receive a VA monthly pension. The amount is determined based on the duration of service, the wartime period and disability rating.

The majority of veterans are not eligible for both pension and compensation benefits at the same time. If a person is a recipient of an existing pension and is receiving a disability payment from the VA then the VA will not pay an income supplement to the person.

The VA is required to provide your monthly military retirement, CRDP or CRSC to the Social Security Administration (SSA). This will nearly always increase your SSI benefit. The SSA can also determine your SSI earnings using VA waiver benefits.

If a judge directs an individual veteran to pay support ordered by the court and the court has the authority to go directly to the VA and request that the military retirement garnished to pay for this reason. This could be the case in divorce cases where the retired person waives their military retired pay in exchange for VA disability payments. The U.S. Supreme Court recently declared in the case of Howell that this practice violated federal law.

Medicaid

A veteran who has a service-connected disability may qualify for Medicare and Medicaid benefits. He must prove that he has been able to meet the five year look-back period. Also, he must provide documentation to prove his citizenship status. He is not able to transfer assets without an appraisal of fair market value, but he can keep his primary residence and one vehicle. He also has the option of keeping up to $1,500 cash or the face value of an insurance policy for life.

In divorce proceedings, the judge could decide that the veteran's VA disability benefits can be considered to be income for purposes of formulating post-divorce child care and maintenance. This is because of the numerous court rulings that have confirmed the rights of family courts to count these payments as income in support calculations. These include rulings from Florida (Allen v. Allen), Mississippi (Steiner v. Steiner), and Wisconsin (In re the marriage of Wojcik).

The amount of the VA disability benefits is contingent on the severity of the service-connected illness. It is determined by a formula that assesses the severity of the condition. It can be between 10 percent to 100 percent. Higher ratings will result in more money. Veterans could also be eligible to receive additional compensation to cover the cost of aid and attendance costs, or a specific monthly payment that is based not on a calendar, but rather the severity of their disability.