What You Need to Know About Veterans Disability Settlement

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

Jim received a $100,000 lump sum settlement. The VA will annually adjust the lump sum for a year. This will reduce his Pension benefit. He will be able to apply 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 sustained during military service. These benefits can be in the form of a disability or pension payment. There are some important points to be aware of when considering the possibility of a personal injury lawsuit or settlement for a disabled veteran.

For instance when disabled veterans receive an award in their lawsuit against the at-fault person who caused their injuries and also has an VA disability compensation claim and the amount of the settlement or jury award may be withdrawn from their VA payments. This kind of garnishment is subject to some restrictions. First you must file a court petition to be filed for the apportionment. Then only a portion typically between 20% and 50% of the monthly amount may be garnished.

It is important to note that compensation is not based on the actual earnings of a veteran, instead, it is based on a percentage. The higher a veteran's disability rating the more compensation they'll receive. The dependent children and spouses of a veteran who passed away from injury or illness related to service are eligible for a special compensation called Dependency Indemnity Compensation.

There are a myriad of misconceptions regarding the impact of veterans' pensions or disability payments, as well as other compensations offered by the Department of Veterans Affairs on money issues in divorce. These misconceptions can make a divorce even more difficult for veterans and their family members.

Pensions

Veterans Disability Pension is a tax-free benefit that is paid to veterans with disabilities that have been incurred or worsened during military service. It can also be accessed by surviving spouses and dependent children. The pension rate is established by Congress and is based on the amount of disability, the level of disability, and whether there are any dependents. The VA has regulations that specify how assets are calculated in order to determine eligibility for Pension benefits. In general, the veteran's home, personal affects and a vehicle are not considered. the remaining assets of the veteran that are not exempt must be less than $80,000 to prove financial need.

It is a common misconception that courts can garnish VA disability benefits to meet court-ordered child support or spousal maintenance obligations. But, veterans disability it is crucial to know that this isn't the situation.

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

This does not apply to CRSC and TDSC since these programs were specifically designed to provide a higher amount of income to disabled veterans. It is important to know, too, that a personal injury settlement may reduce their eligibility for aid and attendance.

SSI

Veterans with an irreparable disability and who have no income may be eligible for Supplemental Security Intake (SSI). This program is based upon need. SSI is only available to those who have low incomes and assets. Some people can also receive pension benefits that are paid monthly by the VA. The amount is determined based on the duration of service, wartime time and disability rating.

Most veterans do not qualify for both pension and compensation benefits at the same time. If a person has a pension and is receiving disability payments from the VA and is eligible for a disability payment, the VA will not pay the Supplemental Security Income benefit to that person.

The VA must report to the Social Security Administration your monthly military retirement, CRDP, or CRSC. This is almost always a cause for an increase in your SSI benefit. SSA can also use the VA waiver of benefits to determine your SSI income.

If a judge directs that a veteran pay support ordered by the court and the court has the authority to go directly to the VA and have the military retirement fund garnished for that purpose. This could be the case in divorce cases if the retired person waives his military retirement pay in exchange for VA disability benefits. The U.S. Supreme Court recently made a ruling in the case Howell that this practice was in violation of federal law.

Medicaid

A veteran suffering from a disability that is related to service could be eligible for Medicare and Medicaid benefits. He must prove that he has fulfilled the five-year lookback period. Additionally, he needs to provide proof to prove his citizenship. He is not able to transfer his assets without a fair market value, however, he is allowed to keep one car and his primary residence. You can also keep up to $1,500 cash or veterans disability the face value of an insurance policy that covers life.

In divorce, the judge may 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 is that numerous court decisions have confirmed the legality of family courts to use these payments to calculate support. These include rulings from Florida, Mississippi (Steiner v. Steiner), Wisconsin (In re Wojcik's marriage), and other states.

The VA disability compensation is determined by the severity of the condition. It is based upon a schedule that rates the severity of the condition. It can vary from 10 percent up to 100 percent with higher ratings earning the highest amount. It is also possible for a veteran to receive additional compensation for aid and attendance expenses, or for special monthly compensation that is not based upon a schedule but upon the severity of the disability.