What You Need to Know About Veterans Disability Settlement

The VA program pays compensation for disability based upon loss of earning capacity. This system is different from workers' compensation programs.

Jim received a lump sum settlement of $100,000. The VA will annually increase the lump sum over one year. This will reduce his Pension benefit. He will only be able to reapply for his Pension benefit after the annualized amount is returned to him.

Compensation

Veterans and their families could be entitled to compensation from the government for injuries sustained during their military service. These benefits can be in the form of a pension or disability payment. When you're 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 with disability is awarded a settlement or a jury award against the party who was at fault for their injuries and also has a VA disability claim, then the amount of the settlement or award may be garnished from their VA payments. This kind of garnishment comes with certain restrictions. First the court must have submitted a petition to apportionment of the disability compensation. Only a small portion that is usually between 20% and 50%, of the monthly compensation can be garnished.

Another thing to note is that the compensation is determined by a percentage of the veteran's disability and not on the actual earnings from the job. The higher the veteran's disability rating the more the compensation they'll receive. The spouses and dependent children of a deceased veteran from service-related illness or injury can be eligible for a special payment called Dependency Indemnity Compensation.

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

Pensions

Veterans Disability Pension (VDP) is an income tax-free benefit given to veterans disability attorney who have disabilities that developed or worsened through their military service. The benefit is also accessible to spouses of those who have survived as well as children who have dependents. The pension rates are set by Congress and based on the amount of disability, the severity of disability, as well as if there are dependents. The VA has specific rules regarding the way assets are calculated to determine eligibility for the pension benefit. Generally, the veteran's house as well as personal possessions and vehicle are excluded, whereas the remaining assets of the veteran that are not exempt must not exceed $80,000 to show financial need.

It is common knowledge that courts are able to garnish VA disability payments to satisfy court-ordered child support or obligations to maintain spousal support. It is important to know that this isn't the case.

The courts can only take a veteran's pension away if they have renounced their military retired pay in order to receive compensation for a disability. 38 U.S.C. Section SS5301 (a) is the law that governs this.

It is important to know that this is not applicable to CRSC or TDSC pay, Veterans Disability Settlement as these programs are specifically designed to provide higher levels of income to disabled veterans disability lawsuit. It is also important to keep in mind that an individual's personal injury settlement may reduce their eligibility for aid and attendance.

SSI

veterans disability law who have an ongoing disability and Veterans Disability Settlement have no income might be eligible for Supplemental Security Intake (SSI). This is a needs-based program. The applicant must have a low income and assets to be eligible for SSI. Some individuals can also receive pension benefits that are paid monthly by the VA. The amount they receive is contingent upon their service and war time period as well as disability rating.

Most veterans aren't eligible for both pension and compensation benefits simultaneously. If a person has a pension and is receiving a disability payment from the VA then the VA will not pay the Supplemental Security Income benefit to that person.

The VA is required to submit your monthly military retirement, CRDP or CRSC to the Social Security Administration (SSA). This will nearly always increase your SSI benefit. SSA can also take advantage of the VA waiver of benefits to calculate your SSI income.

If a veteran is required to pay support pursuant to a court order the court can go directly to VA to levy the military retirement. This can happen in divorce situations where the retiree is required to waive their military retired benefits in exchange for their VA disability benefits. The U.S. Supreme Court recently ruled in the case of Howell that this practice violated federal law.

Medicaid

A veteran with a disability that is related to service could be eligible for Medicare and Medicaid benefits. He must prove that he meets the look-back period of five years. Also, he must present documents to prove his citizenship. He is not able to transfer assets without an amount that is fair market value however, he can keep his primary residence and a vehicle. He can also keep up to $1,500 in cash or the face value of an insurance policy that covers life.

In divorce proceedings, a judge may decide to treat the veteran's VA Disability payments as income when formulating child support and maintenance following the divorce. The reason for this is that a number of court cases have confirmed the rights of family courts in using these payments to calculate support. These include rulings from Florida, Mississippi (Steiner v. Steiner), Wisconsin (In re Wojcik's Marriage) and other states.

The amount of the VA disability compensation varies based on the degree of the service-connected condition. It is based on a formula that assesses the severity of the condition. It can range from 10 percent to 100 percent, with higher ratings yielding the highest amount. Veterans may be eligible for additional compensation for aid and attendance costs, or a specific monthly payment, which is not based on a schedule however, but on the severity of their disability.