Last week, we discussed that there is a growing number of senior veterans in the United States. Senior veterans and their surviving spouses are typically in receipt of four VA cash income programs – Pension, Death Pension, Disability Compensation and Dependents Indemnity Compensation (“DIC”) – along with VA healthcare and burial benefits and state veterans’ benefits. Last week, we discussed Pension, Death Pension and Disability Compensation. This week, we will discuss the remainder of the programs.
Dependents Indemnity Compensation. DIC is payable to eligible survivors of a military service member who died on active duty or whose death after service resulted from a service-connected injury or disease. It is also available due to improper treatment of the deceased veteran from VA healthcare or rehabilitation services. DIC is automatically granted to a surviving spouse for a veteran who was permanently and totally disabled for 10 years or more. DIC pays $1,215 a month in 2013 to a surviving spouse. Additional amounts are available for certain dependent children.
If a veteran’s surviving spouse needs the aid and attendance of another person such as home care, assisted living or nursing home care, an additional $301 a month assistance benefit will be paid. This DIC with aid and attendance benefit is about $400 more a month than a surviving spouse can receive from Death Pension that we discussed last week. This additional benefit is not automatic and most individuals receiving DIC do not even know it is available. An additional monthly benefit for being housebound is also available. A surviving spouse cannot receive Death Pension and DIC at the same time. A choice must be made which benefit the beneficiary wants to receive.
Health Care Benefits. The VA health care system is the largest single provider of health care in the United States. After a checkered past, it is now recognized by numerous surveys as being one of the best providers of health care as well. Not all veterans can receive care in the system. Eligibility requires either service-connected disability, receipt of Pension, special service recognition such as prisoner of war or Purple Heart. Other veterans must meet the means test of low income and less than about $80,000 in assets.
For qualifying veterans, except certain ones who are means tested, all services are free and medications have a co-pay of $8.00 per month per medication. Certain means tested veterans must pay a co-pay for services. For qualifying veterans, there are no other out-of-pocket costs such as health care premiums. Help can also be provided with disability-required home renovation grants of $2,000 or $6,800, orthotics, prosthetics and in certain cases hearing aids. VA outpatient clinics are available in most communities. In St. Clair County, a VA clinic is located in Yale.
Burial Benefits. Money is available for burial costs for veterans who were service disabled, receiving Pension or died under VA care. If the death was a result of service-connected disability, $2,000 is available. If the death was non-service related, and the veteran was receiving Pension or Disability Compensation or was entitled to either of these, up to $700 is available for plot allowance and burial and funeral expenses.
Veterans may also receive free burial in State and Federal VA cemeteries. Under certain conditions, spouses and other family members can receive free burial in State and Federal VA cemeteries. In Michigan, there are two Federal cemeteries providing burials, in Holly and Augusta. There is a state veteran’s cemetery in Grand Rapids, but it is generally limited to veterans and their widows who were residents of the Grand Rapids Home for Veterans.
There is also a Federal VA cemetery in Port Huron, located at Lakeside Cemetery. However, it is not open for new burials. All veterans are eligible for a grave marker (or equivalent monetary allowance), a flag for the coffin, a graveside honor guard and a letter from the President of the United States.
State Veteran Benefits. All states offer various additional benefits to veterans. These benefits may include special recognition, property tax reduction, free hunting and fishing and state parks admission as well as a whole host of other benefits. Some states are more generous than others and in some states veterans can receive a one-time cash stipend. All states have at least one or more veterans homes that are available to various classes of veterans depending on the rules of the home. Federal rules require that at least 25% of all beds in state veterans homes be reserved for the spouses of veterans, if those beds are available.
In Michigan, there are veterans homes in Grand Rapids and in Marquette. For children of certain deceased or disabled veterans, annual undergraduate tuition grants may be available. Michigan also offers veterans a variety of employment services. Temporary assistance grants may be available to certain Michigan resident veterans and their families with financial emergencies or hardships. For more details of benefits for veterans in Michigan, see the Michigan Veterans Program Booklet, which can be found at http://www.michigan.gov/documents/dmva/VBS-Booklet_Instructions_190078_7.pdf. Explanations of veterans benefits are also available at www.seniorvets.org.
Free Veterans Claims Assistance. As we discussed last week, generally, under Federal statute, no individual or organization may charge a fee for help with filing an initial claim for VA benefits. Be wary of any outfit who charges a fee for some products or services and throws in the filing of the VA claim for “free”. It is reported that VA General Counsel treats all these financial arrangements similarly. As a general rule, anyone who would directly benefit financially from helping a veteran file a claim, whether a direct fee is charged or not, is in essence charging a fee, and violating Federal law.
Also be wary of establishments with names that sound like legitimate veterans organizations. Oftentimes these organizations were just set up to lure veterans to use their services, for a fee. Work only with VA accredited individuals.
For help with veterans benefits claims, it is oftentimes best to start with your local county veterans office. In St. Clair County, it is the St. Clair County Department of Veterans Affairs in Port Huron at 810-989-6945. They can either assist you themselves or refer you to accredited Veterans Service Officers from legitimate veterans organizations, such as the VFW or DAV. Protect yourself and your veterans’ benefits
By: Matthew M. Wallace, CPA, JD
Published edited April 21, 2013 in The Times Herald mewspaper, Port Huron, Michigan as: Dependents of veterans should know their benefits