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8.3.5 Indigent Circumstances

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Last amended: 17 April 2012

Definition of indigent circumstances

There are two definitions of indigent circumstances depending on whether the deceased was a veteran with a partner, or either a single veteran or dependant of a deceased veteran/member. The table below illustrates the different definitions.

If the person who died was a...

And the value of their estate

Then...

Partnered veteran

After deducting all liabilities including funeral expenses totals $5,000 or more

They are not considered to have died in indigent circumstances    

Partnered veteran

After deducting all liabilities including funeral expenses totals less than $5,000

They are considered to have died in indigent circumstances    

Single veteran or a dependant of a deceased veteran/member

Covers all liabilities including funeral expenses

They are not considered to have died in indigent circumstances    

Single veteran or a dependant of a deceased veteran/member

Is not sufficient to cover all liabilities including funeral expenses

They are considered to have died in indigent circumstances    

Certain assets excluded from partnered veteran's estate when determining indigent circumstances

When calculating the value of a partnered veterans estate, the value of the family home and family car are not included. For the purposes of determining indigent circumstances, these assets are not taken as forming part of the estate, rather they are regarded as being passed directly onto the surviving partner. This applies regardless of whether the veteran and his/her partner are living in residential aged care and their former home is regarded as an assessable asset for pension purposes.

The home in which the person formerly resided and their car are included when determining whether a single veteran, or a dependant of a deceased veteran/member died in indigent circumstances.

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Indigent means needy or poor. The term 'indigent circumstances' is used in the VEA in relation to eligibility for a bereavement payment under section 98AA and funeral benefit under sections 99 or 100.

For both funeral benefit and bereavement payment purposes, indigency means that the estate of a deceased person without dependants has insufficient funds to pay for all liabilities including the funeral. A similar test applies where a [glossary:veteran:DEF/Veteran] is survived by a dependant except that certain assets are excluded from the value of the estate such as the family home, the family car and up to $5,000 in cash.

A detailed table of eligibility based on indigency is at CLIK Policy at Section 8.3.5

 

 

For the purposes of Part VI of the VEA, a reference to a veteran is taken to be a reference to:

  • a veteran as defined in subsection 5C(1) of the VEA;
  • a member of the Forces as defined in subsection 68(1) of the VEA; or
  • a member of a Peacekeeping Force as defined in subsection 68(1) of the VEA.

For the purposes of Part VII of the VEA, according to subsection 5C(1), veteran means a person (including a deceased person):

  • who is taken to have rendered eligible war service, or
  • in respect of whom a pension is, or pensions are, payable under subsection 13(6) and
  • in Part III and Part VIIC of the VEA includes a person who is:

 

 

A person's 'partner' is someone who is a member of a couple with that person.