**§3.275 Criteria for evaluating net worth.**

\(a\) *General*. The following rules are for application in determining
the corpus of estate or net worth of a veteran, surviving spouse or
child under §3.274.

\(b\) *Definition*. The terms "corpus of estate" and "net worth" mean
the market value, less mortgages or other encumbrances, of all real and
personal property owned by the claimant, except the claimant's dwelling
(single family unit), including a reasonable lot area, and personal
effects suitable to and consistent with the claimant's reasonable mode
of life.

\(c\) *Ownership*. See §3.271(d).

\(d\) *Evaluation*. In determining whether some part of the claimant's
estate (or combined estates under §3.274(a) and (e)) should be consumed
for the claimant's maintenance, consideration will be given to the
amount of the claimant's income together with the following: Whether the
property can be readily converted into cash at no substantial sacrifice;
life expectancy; number of dependents who meet the definition of "member
of the family" (the definition contained in §3.250(b)(2) is applicable
to the improved pension program); potential rate of depletion, including
unusual medical expenses under the principles outlined in §3.272(g) for
the claimant and the claimant's dependents.

\(e\) *Educational expenses*. There shall be excluded from the corpus of
estate or net worth of a child reasonable amounts for actual or
prospective educational or vocational expenses. The amount so excluded
shall not be such as to provide for education or training beyond age 23.
(Authority: 38 U.S.C. 501(a))

\(f\) *Agent Orange settlement payments*. There shall be excluded from
the corpus of the estate or net worth of a claimant any payment made
from the Agent Orange Settlement Fund or any other fund established
pursuant to the settlement in the *In re Agent Orange product liability
litigation*, M.D.L. No. 381 (E.D.N.Y.). (January 1, 1989) (Authority:
Pub. L. 101-201, 103 Stat. 1795)

\(g\) *Restitution to individuals of Japanese ancestry*. There shall be
excluded from the corpus of estate or net worth of a claimant any
payment made as restitution under Public Law 100-383 to individuals of
Japanese ancestry who were interned, evacuated, or relocated during the
period December 7, 1941, through June 30, 1946, pursuant to any law,
Executive order, Presidential proclamation, directive, or other official
action respecting these individuals. (August 10, 1988) (Authority: Sec.
105, Pub. L. 100-383; 102 Stat. 905)

\(h\) *Radiation Exposure Compensation Act*. There shall be excluded
from the corpus of estate or net worth of a claimant any payment made
under Section 6 of the Radiation Exposure Compensation Act of 1990.
(Authority: 42 U.S.C. 2210 note)

\(i\) *Monetary allowance under 38 U.S.C. chapter 18 for certain
individuals who are children of Vietnam veterans*. There shall be
excluded from the corpus of estate or net worth of a claimant any
allowance paid under the provisions of 38 U.S.C. chapter 18 to or for an
individual who is a child of a Vietnam veteran. (Authority: 38 U.S.C.
1823(c))

\(j\) *Victims of Crime Act*. There shall be excluded from the corpus of
estate or net worth of a claimant any amounts received as compensation
under the Victims of Crime Act of 1984 unless the total amount of
assistance received from all federally funded programs is sufficient to
fully compensate the claimant for losses suffered as a result of the
crime. (Authority: 42 U.S.C. 10602(c))

\[44 FR 45936, Aug. 6, 1979, as amended at 57 FR 59300, Dec. 15, 1992;
60 FR 2523, Jan. 10, 1995; 62 FR 51279, Sept. 30, 1997; 67 FR 49587,
July 31, 2002; 68 FR 60852, Oct. 24, 2003\]

**Supplement *Highlights* references**: 6(2), 14(4), 31(1), 54(2),
61(1).