injury settlement

Discussion in 'Countable Income' started by jayencee, Oct 28, 2016.

  1. jayencee

    jayencee Newbie


    First, I really love the forum and the invaluable help you are providing. I used your guidance to have my father, a Vietnam era Vet, obtain partial A & A benefits 5 years ago. He has a debilitating spinal condition and I couldn't have done this alone.

    That being said, my father suffered an injury last year due to a hired caregiver's outright carelessness. The injury exacerbated his condition and was so egregious I had to sue the company employing her for improper training and negligence. In any event the case was mediated and settled.

    The settlement money just barely exceeds the VA asset limit of $80k for A & A. This money is for pain and suffering and is not considered taxable income by the IRS. We need this money in addition to A & A for what has now become full time care.

    Obviously, I am happy to settle the lawsuit but has this now disqualified him from A & A benefits? This doesn't seem right or fair.

    I am totally confused about what to do next and would appreciate your advice.


  2. Kaylin

    Kaylin Hero Member Staff Member

    Kim, I'm so glad your father was able to get the A&A benefit with's help.

    I am so sorry to hear of your father's situation. You do need to let the VA know he has been awarded this money since it increased his assets by quite a large amount. Use Statement in Support of Claim form 21-4138 in order to update them. Add any additional supporting documents you may need to show (like bank statements). It may put him over the level he needs to be to continue getting awarded the A&A benefit, but it should be temporary until he spends down the money from the settlement. Just update the VA again once he is below $80,000.

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