What You Need to Know About Veterans Disability Settlement
The VA program compensates for disability on the basis of loss of earning capacity. This system is different from the workers' compensation programs.
Jim received a $100,000 lump sum settlement. The VA will annualize the lump sum for a year. This will offset his Pension benefit. He will only be eligible 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 in case of injuries sustained while serving in the military. These benefits can be either the form of a disability or pension. There are some important aspects to consider when considering a personal injury lawsuit, or settlement for disabled veterans.
For instance in the event that the disabled veteran receives an award in their lawsuit against the at-fault person who caused their injuries and they also have an VA disability compensation claim and the amount of the settlement or jury award may be garnished from their VA payments. This type of garnishment comes with some restrictions. First the court petition must be filed for the apportionment. Then, only a fraction that is usually between 20 and 50% of the monthly pay may be garnished.
It is also important to note that compensation is not based on the actual earnings of a veteran however, on the percentage. The higher a veteran's disability rating, the greater compensation they'll receive. The spouses and dependent children of a deceased veteran due to injury or illness caused by service can be eligible for a special compensation called Dependency Indemnity Compensation.
There are many misconceptions regarding the impact of
Veterans disability law firms' pension benefits and disability benefits, as well as other compensations from the Department of Veterans Affairs on finances during divorce. These misconceptions can cause divorces to be even more difficult for both veterans and their families.
Pensions
Veterans Disability Pension is a tax free monetary benefit that is granted to veterans who have disabilities that they suffered or aggravated through military service. The benefit is also available to spouses who have survived as well as children who have dependents. The pension rate is set by Congress and is based on amount of disability, the level of disability, and if there are dependents. The VA has specific regulations on the way assets are calculated to determine eligibility for the Pension benefit. The VA will not consider the veteran's vehicle, home and personal possessions. However the remaining non-exempt assets owned by the veteran must be less than $80.000 to demonstrate financial need.
It is common knowledge that courts can garnish VA disability payments to pay court-ordered child support or maintenance obligations for spouses. It is important to know that this isn't the case.
The courts are only able to garnish the pension of a veteran if they have waived their military retired pay to be compensated for disability. 38 U.S.C. The SS5301 (a) is the law that governs this.
It is important to understand that this doesn't apply to CRSC or TDSC pay, as these programs are specifically designed to provide a higher percentage of income for disabled veterans. It is important to know, too, that a personal injury settlement could reduce their eligibility for aid and attendance.
SSI
Veterans with a permanent disability but have no income might be eligible for Supplemental Security Intake (SSI). This program is based upon need. SSI is only available to those with low incomes and assets. Some can also receive a monthly pension payment from the VA. The amount is determined by the length of service, wartime period and disability rating.
The majority of veterans aren't qualified to receive both a Pension and Compensation benefit at the same time. If someone receives an amount for disability and pension benefits from the VA but it does not pay them a Supplemental Security income benefit.
The VA is required to provide your monthly military retirement, CRDP or CRSC to the Social Security Administration (SSA). This will nearly always increase your SSI benefit. SSA can also make use of the VA waiver of benefits to calculate your SSI income.
If a judge directs that a veteran pay support as ordered by the court the court can send the order directly to the VA and have the military retirement funds seized for that reason. This is a possibility in divorce situations where the retiree is required to waive their retirement benefits as a military retiree in exchange for their VA disability payments. The U.S. Supreme Court recently decided in the case of Howell that this practice was in violation of federal law.
Medicaid
A veteran who has a service-connected disability may qualify for Medicare and Medicaid benefits. He must prove that he been able to meet the five year look-back period. The applicant must also provide documents to show his citizenship. He is not able to transfer assets without an amount that is fair market value but he can keep his primary residence and one vehicle. He is allowed to keep up to $1500 in cash or the face value of a life-insurance policy.
In divorce proceedings, the judge could decide that the veteran's VA disability benefits can be considered income in the context of calculating post-divorce child support and maintenance. The reason for this is that numerous court cases have confirmed the legality of family courts in using these payments to calculate support. These include decisions from Florida (Allen v. Allen), Mississippi (Steiner v. Steiner), and Wisconsin (In Re the marriage of Wojcik).
The VA disability compensation is based on the severity of the condition. It is based upon a formula that assesses the severity of the condition. It could range from 10 percent to 100 percent and higher ratings bringing the most money. Veterans may also be eligible for additional compensation to cover the cost of aid and attendance costs, or a specific monthly payment that is not based on a specific schedule however, but on the severity of their disability.