What You Need to Know About Veterans Disability Settlement

The VA program pays for disability due to loss of earning capacity. This program is distinct from workers' compensation programs.

Jim received a lump-sum settlement of $100,000. The VA will annually adjust the lump sum for a year. This will be offset by his Pension benefit. He will be able to apply for his pension benefit once the annualized amount has been returned to him.

Compensation

Veterans and their families could be entitled to compensation by the government for injuries suffered during their military. These benefits could be the form of a disability or pension. When considering a personal-injury lawsuit or settlement on behalf of a disabled veteran there are some important aspects to keep in mind.

If a veteran who has an impairment receives a settlement or jury award against the party responsible for their injuries, and also has an VA disability claim, then the amount of that settlement or award could be garnished from the VA payments. This type of garnishment is subject to certain restrictions. First you must file a court petition to be filed to apportion the funds. Then only a portion of between 20% and 50 percent, of the monthly compensation may be garnished.

It is important to note that compensation is based not on the actual earnings of a veteran, but on an amount. The higher the veteran's disability score, Veterans Disability the more the compensation they'll receive. The children and spouses of disabled veterans who have died of a service-related illness injuries are eligible for a special benefit called Dependency Indemnity Compensation (DIC).

There are many misconceptions about the impact that the benefits of retirement for veterans, disability pay and other compensations from the Department of Veterans Affairs have on divorce issues involving money. These misconceptions can cause a difficult divorce even more difficult for veterans and their family members.

Pensions

Veterans Disability Pension (VDP) is an income tax-free benefit paid to veterans disability lawsuits with disabilities that were incurred or worsened by their service in the military. It is also available to the surviving spouses and dependent children. Congress sets the pension rate and it is determined by the level of disability, the degree of disability, and dependents. The VA has specific rules regarding how assets are evaluated to determine the eligibility criteria for the Pension benefit. The VA will not consider the veteran's vehicle, home and personal effects. However the remaining non-exempt assets owned by the veteran must not exceed $80.000 to prove financial need.

A common misconception is that courts could garnish VA disability payments to accomplish court-ordered child or Veterans Disability spousal support obligations. It is important to know that this is not the case.

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

This is not the case with CRSC and TDSC since these programs were specifically designed to provide a higher level of income for disabled veterans. It is also important to keep in mind that the settlement of a personal injury claim for a veteran may reduce their eligibility for aid and attendance.

SSI

If a veteran is not earning earned income and suffers from a permanent disability they could be eligible for Supplemental Security Income (SSI). This program is based on need. SSI is only available to those with low incomes and assets. Some individuals may also be eligible to receive an VA monthly pension. The amount is determined by length of service, wartime time and disability rating.

Most veterans do not qualify to receive both Compensation and Pension benefits simultaneously. If a person is a recipient of an income pension and receives a disability payment from the VA and is eligible for a disability payment, the VA will not pay an income supplement to the person.

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

If a judge directs that a veteran pay court-ordered support, the court may go directly to the VA and have the military retirement garnished to pay for this purpose. This is a possibility in divorce situations where the retiree is required to waive their military retirement pay in exchange for VA disability benefits. The U.S. Supreme Court ruled in the recent case Howell that such a practice was against federal law.

Medicaid

veterans disability lawyer who have disabilities related to 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. Also, he must present documents that prove his citizenship. He is not able to transfer assets without an amount that is fair market value but he can still keep his primary residence and a vehicle. He can keep up to $1500 in cash or the face amount of a life-insurance policy.

In a divorce the judge can decide that the veteran's VA disability payments may be considered to be income for purposes of calculating post-divorce child support and maintenance. This is due to the numerous court decisions that have upheld the rights of family courts to utilize these payments as income in support calculations. These include rulings from Florida, Mississippi (Steiner v. Steiner), Wisconsin (In Re Wojcik's marriage), and other states.

The VA disability compensation is based on the severity of the condition. It is based on a schedule that ranks the severity the condition. It could range from 10 percent and 100 percent. Higher ratings will bring more money. Veterans may also be eligible for additional compensation to cover attendance and aid expenses or a monthly payment, which is based not on a calendar however, but on the severity of their disability.