What You Need to Know About Veterans Disability Settlement

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

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

Compensation

Veterans and their families could be eligible for compensation from the government for injuries incurred during the military. These benefits could be the form of disability or pension. There are a few key things to think about when considering the possibility of a personal injury lawsuit or settlement for a disabled veteran.

If a veteran suffering from an impairment receives a settlement or jury award against the party responsible for their injuries, and also has an VA disability claim and the amount of that settlement or award could be garnished off the VA payments. However, there are certain limitations to this type of garnishment. First an application to the court must be filed to apportion the funds. Then only a certain percentage that is usually between 20 and 50%, of the monthly compensation can be garnished.

It is important to note that compensation is based not on the actual earnings of a veteran, however, on a percentage. The higher the disability rating, the greater compensation they'll receive. Children and spouses of a disabled veteran who died of a service-related illness injuries are eligible for a special benefit known as Dependency Indemnity Compensation (DIC).

There are a myriad of misconceptions regarding the impact that veterans' retirement benefits along with disability pay and other compensations from the Department of Veterans Affairs have on money issues in divorce. These misconceptions can cause a difficult divorce even more difficult for veterans and their families.

Pension

veterans disability law firm Disability Pension is a tax-free financial benefit that pays out to veterans with disabilities incurred or aggravated during military service. It is also available to the surviving spouses and dependent children. The pension rate is set by Congress and is based on the amount of disability, the severity of disability, and if there are any dependents. The VA has regulations that govern the method of calculating assets in order to determine eligibility for Pension benefits. In general, the veteran's home personal effects, personal belongings and a vehicle are disregarded, while the veteran's remaining non-exempt assets must be less than $80,000 in order to demonstrate financial need.

A common misconception is that the courts can garnish VA disability payments to meet court-ordered child or spouse support obligations. It is important to know that this isn't the case.

The courts are only able to garnish the pension of a veteran if they have waived military retired pay to receive compensation for disability. The statute governing this is 38 U.S.C SS5301(a).

It is important to note that this is not applicable to CRSC or TDSC pay, as these programs are specifically designed to provide a higher percentage of income to disabled veterans disability attorney. It is important to remember that a personal injury settlement could reduce 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. The applicant must have a low income and assets to be eligible for SSI. Some people are also eligible for a monthly pension payment from the VA. The amount is determined based on the length of service, the wartime period and disability rating.

Most veterans are not qualified for both a pension and Compensation benefit simultaneously. If a person receives the disability payment as well as a pension from the VA but it does not pay a Supplemental Security income benefit.

The VA is required to provide your monthly military retirement, CRDP or CRSC to the Social Security Administration (SSA). This is almost always a cause for an increase in your SSI benefit. SSA may also benefit from the VA waiver of benefits in order to determine your SSI income.

If a judge orders the 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 fund garnished for that purpose. This can be the case in divorce cases where the retired person waives their retirement benefits as a military retiree in exchange for their VA disability payments. The U.S. Supreme Court ruled in the recent case Howell that this practice was in violation of federal law.

Medicaid

A veteran suffering from a disability resulting from service can qualify for Medicare and Medicaid benefits. He must prove that he has been able to meet the five year look-back period. The applicant must also submit documents to prove his citizenship. He is not able to transfer assets without an amount that is fair market value but he can keep his primary residence and one vehicle. You can also keep up to $1,500 in cash or the face value of the life insurance policy.

In divorce, the judge may decide that the veteran's VA disability payments can be considered income for purposes of calculation of post-divorce child custody and maintenance. The reason is that numerous court decisions have confirmed the legality of family courts to use these payments to calculate support. These include decisions from Florida, Mississippi (Steiner v. Steiner), Wisconsin (In the case of Marriage of Wojcik), and other states.

The amount of VA disability compensation varies based on the degree of the service-connected condition. It is determined by a schedule that rates the severity of the condition. It can be between 10 percent to 100 percent. Higher ratings will bring more money. It is also possible for a veteran to receive additional compensation for aid and attendance expenses, or for special monthly payments that are not based on a calendar but upon the degree of the disability.