Before my husband died, he said that his VA pension was "untouchable". What did he mean? Does it mean that it cannot be garnished,or used to pay for a loss in a small claims court? Also, is it taxable?

Thanks.

Legally VA Compensation and Pensions and Social Security income is protected from garnishment. VA Pension and Compensation are not taxable. However, they do not absolve you of any legal debt you owe, and banks have been known to break this law. All income can be used by you to satisfy your debt. If he is dead, then you are not entitled to his pension. You may be entitled to Dependency Indemnity Compensation (DIC), but you have to file for it. If you are still receiving his pension, be aware that when the VA finds out he died, they will expect it repaid.

Please contact a VSO, a Veterans Service Officer for help. They provide these services for free. AMVETS, DAV, VFW are a few of the organizations.

Thanks for your quick reply. I should have clarified myself a little better about the Dependency Indemnity Compensation. I meant that instead of "pension." As for the money, I have no intention of making bills and not paying for them. I was just wondering.

Thanks

DIC has the same rules as C & P. Just the point that by law it is protected, but this has become an issue with banks violating the law.