What You Need to Know About Veterans Disability Settlement

The VA program pays compensation 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 increase each year the lump sum over one year. This will reduce his Pension benefit. He is only eligible to apply again after the annualized amount has been paid to him.

Compensation

Veterans and their families could be entitled to compensation from the government for injuries suffered during the military. These benefits could come in the form of a disability or pension payment. There are some important things to keep in mind when considering a personal injury suit or settlement for a disabled veteran.

If a veteran suffering from an impairment receives an award or settlement against the party who was at fault for their injuries, and also has a VA disability claim and is awarded a settlement or award, the amount of that settlement or award may be garnished off the VA payments. However, there are certain restrictions on this type of garnishment. First, a court petition must be filed to apportion the funds. Then, only a fraction of the monthly salary can be garnished, usually between 20-50 percent.

It is also important to know that compensation is not based on the actual earnings of a veteran, but rather on a percentage. The higher the veteran's disability rating, the more compensation they'll receive. Family members of survivors of a disabled veteran who passed away of service connected illness or injuries are eligible for a special benefit known as Dependency Indemnity Compensation (DIC).

There are many myths about the impact that veterans' retirement benefits as well as disability payments and other benefits from the Department of Veterans Affairs have on divorce issues involving money. These misconceptions can cause divorces to be even more difficult for veterans and their families.

Pensions

Veterans Disability Pension is a tax-free financial benefit that is granted to veterans with disabilities that have been incurred or aggravated through military service. The benefit is also accessible to spouses who have survived and children with dependents. 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 outline how assets are calculated to determine eligibility for Pension benefits. In general, the veteran's home or personal effects as well as a vehicle are excluded, whereas the veteran's remaining non-exempt assets must be less than $80,000 to demonstrate financial need.

It is common knowledge that courts are able to garnish VA disability payments to pay court-ordered child support or maintenance obligations for spouses. However, it's important to recognize that this is not the case.

The courts can only take a veteran's pension away if they have renounced their military retired pay in order to get the benefits of an impairment. The statute governing this is 38 U.S.C SS5301(a).

This does not apply to CRSC and TDSC since these programs were specifically created to provide a higher amount of income to disabled veterans disability law firms. It is important to keep in mind, too, that a veteran’s personal injury settlement could affect their eligibility for aid and attendance.

SSI

Veterans with an ongoing disability and have no income might be eligible for Supplemental Security Intake (SSI). This is a need-based program. SSI is only available to those with low incomes and assets. Some people might also be eligible for a VA monthly pension. The amount is determined by the duration of service, wartime time and disability rating.

Most veterans do not qualify for both Pension and Compensation benefits simultaneously. If a person receives an amount for disability and a pension from the VA, it will not pay them a Supplemental Security income benefit.

The VA must submit to the Social Security Administration your monthly military retirement, CRDP, or Veterans disability CRSC. This will almost always increase your SSI benefit. SSA may also benefit from the VA waiver of benefits in order to determine your SSI income.

If a judge requires an individual veteran to pay support ordered by the court, the court may go directly to the VA and have the military retirement funds seized for that purpose. This can happen in divorce cases where the retired person waives their military retirement pay in exchange for their VA disability payments. The U.S. Supreme Court ruled recently in the case of Howell that such a procedure was in violation of federal laws.

Medicaid

A veteran with a disability that is related to service could be eligible for Medicare and Medicaid benefits. He must prove that he has the look-back period, which is five years. 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 still keep his primary residence and a vehicle. He can keep up $1500 in cash or the face amount of a life insurance policy.

In a divorce, the judge may decide that the veteran's VA disability payments 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 for support calculations. These include rulings from Florida (Allen v. Allen), Mississippi (Steiner v. Steiner), and Wisconsin (In re the marriage of Wojcik).

The VA disability payment is based on the severity of the condition. It is calculated based on an index that ranks the severity the condition. It can vary from 10 percent up to 100 percent and higher scores bringing the highest amount. Veterans could also be eligible to receive additional compensation to cover attendance and aid expenses, or a specialized monthly payment that is not based on a calendar and not on the extent of their disability.