LIMITATION ON COMPENSATION BENEFITS FOR CERTAIN INCOMPETENT VETERANS.

SEC. 8001. LIMITATION ON COMPENSATION BENEFITS FOR CERTAIN INCOMPETENT VETERANS. (a) In General.—(1) Chapter 55 of title 38, United States Code, is amended by adding at the end the following new section:104 STAT. 1388–342 “§ 3205. Limitation on compensation payments for certain incompetent veterans “(a) In any case in which a veteran having neither spouse, child, nor dependent parent is rated by the Secretary in accordance with regulations as being incompetent and the value of the veteran’s estate (excluding the value of the veteran’s home) exceeds $25,000, further payment of compensation to which the veteran would other-wise be entitled may not be made until the value of such estate is reduced to less than $10,000. “(b)(1) Subject to paragraph (2) of this subsection, if a veteran denied payment of compensation pursuant to subsection (a) is subsequently rated as being competent, the Secretary shall pay to the veteran a lump sum equal to the total of the compensation which was denied the veteran pursuant to such paragraph. The Secretary shall make the lump-sum payment as soon as practicable after the end of the 90-day period beginning on the date of the competency rating. “(2) A lump-sum payment may not be made under paragraph (1) to a veteran who, within such 90-day period, dies or is again rated by the Secretary as being incompetent. “(3) The costs of administering this subsection shall be paid from amounts available to the Department of Veterans Affairs for the payment of compensation and pension. “(c) This section expires on September 30, 1992.”. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “3205. Limitation on compensation payments for certain incompetent veterans.” (b) Effective Date.—The amendment made by this section shall apply with respect to payment of compensation for months after October 1990.