What You Need to Know About Veterans Disability Settlement

The VA program pays compensation for disability based on 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 adjust the lump sum for one year. This will offset his Pension benefit. He is only able to apply after the annualized amount has been returned to him.

Compensation

Veterans and their families may be eligible for compensation from the government for injuries suffered during their military. These benefits could be in the form of a pension or disability payment. There are a few important things to keep in mind when considering a personal injury lawsuit or settlement for disabled veterans.

For example in the event that the disabled veteran receives an award in their legal case against the at-fault party who caused the damage and they also have a VA disability compensation claim The amount of the settlement or jury award can be withdrawn from VA payments. However, there are a few restrictions on this type of garnishment. First, the court must have filed a petition seeking apportionment of the disability pay. Only a small portion of between 20% and 50 percent of the monthly amount could be garnished.

Another thing to keep in mind is that the compensation is dependent on a percentage of a veteran's disabilities and not on actual earnings from the job. The higher a veteran's disability rating, the more money they'll get. Family members of survivors of a disabled veteran who died of a service-related illness injuries are eligible for a specific benefit known as Dependency Indemnity Compensation (DIC).

There are many misconceptions regarding the impact of veterans' pension benefits and disability benefits, as well as other compensations from the Department of Veterans Affairs on the financial aspects of divorce. These misconceptions can make a divorce even more difficult for veterans and their families.

Pensions

Veterans Disability Pension (VDP) is an income tax-free benefit given to veterans disability lawsuits with disabilities that were caused or worsened by their military service. It is also available to the surviving spouses and dependent children. The pension rate is determined by Congress and is determined by the amount of disability, the severity of disability, and if there are any dependents. The VA has regulations that outline how assets are calculated to determine eligibility for Pension benefits. The VA will not consider the veteran's vehicle, home and personal possessions. However the remaining non-exempt assets of the veteran must be less than $80.000 to prove financial need.

It is a common misconception that the courts are able to garnish VA disability payments to meet court-ordered child support or obligations to maintain spousal support. It is important to realize that this is not true.

The courts can only garnish the veteran's pension when they have waived their military retired pay to obtain compensation for disability. 38 U.S.C. Section SS5301 (a) is the law that governs this.

This is not the case with CRSC and TDSC These programs were specifically created to provide a higher level of income for disabled veterans. It is also important to know that a veteran's personal injury settlement may reduce their eligibility for aid and attendance.

SSI

If a veteran is not earning earned income and has permanent disabilities or permanent disability, they could be eligible for Supplemental Security Income (SSI). This program is based upon need. SSI is only available to those who have low incomes and assets. Some individuals may also be eligible for the VA monthly pension. The amount is determined by duration of service, the wartime period and disability rating.

Most veterans are not qualified for both a pension and Compensation benefit at the same time. If a person is a recipient of an existing pension and is receiving an income from the VA, 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 almost always increase your SSI benefit. SSA can also make use of the VA waiver of benefits to calculate your SSI income.

If a veteran is required to pay a support amount by an order of a court the court may send the order directly to VA to garnish the military retirement. This could be the case in divorce cases if the retiree waives his retirement benefits from the military to pay VA disability payments. The U.S. Supreme Court recently ruled in the case of Howell that this practice was in violation of federal law.

Medicaid

A veteran who has a disability resulting from service can qualify for Medicare and Medicaid benefits. He must prove that he has met the five-year look-back period. Additionally, he needs to provide proof to prove his citizenship. He cannot transfer assets without an appraisal of fair market value, however, he can keep his primary residence and one vehicle. He is able to keep up $1500 in cash or the face amount of a life-insurance policy.

In a divorce the judge could decide that the veteran's VA disability payments may be considered income in the context of the calculation of post-divorce child support and maintenance. The reason is that several court cases have confirmed the legality of family courts in using these payments to calculate support. These include rulings from Florida (Allen v. Allen), Mississippi (Steiner v. Steiner), and Wisconsin (In re Marriage of Wojcik).

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