Citation Nr: 23047294 Decision Date: 08/25/23 Archive Date: 08/25/23 DOCKET NO. 20-04 315 DATE: August 25, 2023 ORDER For the entire appeal period, an award of additional compensation benefits based upon recognition of the Veteran's mother, M., as his dependent parent for Department of Veterans Affairs (VA) purposes is granted. FINDING OF FACT The Veteran's mother, M., is dependent on the Veteran for her reasonable maintenance. CONCLUSION OF LAW The criteria for additional compensation based upon recognition of the Veteran's mother, M., as his dependent parent for VA purposes are met. 38 U.S.C. §§ 102, 5107; 38 C.F.R. §§ 3.250, 3.262, 3.263. REASONS AND BASES FOR FINDING AND CONCLUSION The Veteran, who is the Appellant in this case, had active service in the U.S. Marine Corps from August 1996 to August 2000, and from March 2001 to March 2005. This matter comes before the Board of Veterans' Appeals (BVA or Board) from a November 2018 decision by a Department of Veterans Affairs (VA) Regional Office (RO). The Veteran in this case asserts that he is eligible for additional dependency benefits for M., his mother. A veteran who is in receipt of disability compensation of 30 percent or more is entitled to an additional allowance for each dependent. 38 U.S.C. § 1115. The Board notes that the Veteran in this case has been in receipt of a disability rating of at least 30 percent since April 21, 2010. See June 1, 2011, Rating Decision. The provisions of 38 C.F.R. § 3.250 govern whether a parent can be classified as a dependent parent. This regulation provides that conclusive dependency of a parent (other than one who is residing in a foreign country) will be held to exist where the monthly income does not exceed, in pertinent part, $400 (U.S. dollars) for a mother and father not living together. 38 C.F.R. § 3.250(a)(1). Further, where the income exceeds the monthly amounts stated in paragraph (a)(1) of 38 C.F.R. § 3.250, dependency will be determined on the facts in the individual case under the principles outlined in paragraph (b) of 38 C.F.R. § 3.250. If an appellant's parent's income is found to exceed the monthly amounts stated 38 C.F.R. § 3.250(a)(1), dependency be determined on the facts of the case under the principles outlined in 38 C.F.R. § 3.250(b). Dependency of a parent will be held to exist if the parent does not have an income sufficient to provide for his or her reasonable maintenance. "Reasonable maintenance" includes housing, food, clothing, medical care, as well as items beyond the bare necessities. "Reasonable maintenance" also includes other requirements reasonably necessary to provide those conveniences and comforts of living suitable to and consistent with the parents' reasonable mode of life. Retirement benefits, including an annuity or endowment, paid under a Federal, State, municipal, or private business or industrial plan are considered income. Where the payments received consist of part principal and part interest, interest will not be counted separately. In determining dependency of a parent for compensation purposes, all payments will be considered income as received. 38 C.F.R. § 3.262(e). Old age and survivor's insurance and disability insurance under title II of the Social Security Act will be considered income as a retirement benefit under the rules as described in 38 C.F.R. § 3.262(e). There is no specific dollar limitation on net worth (as opposed to income) that bars an otherwise eligible parent from being classified as a dependent parent. To the extent that the Veteran's parent has a net worth or estate, and some part of such assets may be relevant to the analysis of whether the parent has sufficient income to provide for their own reasonable maintenance, the Board looked to 38 C.F.R. §§ 3.262-3.263 for guidance. 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 and personal effects. 38 C.F.R. § 3.263(b). In determining whether some part of the parent's estate should be consumed for his or her maintenance, consideration will be given to the amount of the parent'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 a member of the family; and potential rate of depletion, including unusual medical expenses. See, generally, 38 C.F.R. § 3.263(d). At the outset, the Board notes that the RO has denied this claim because it stated that the Veteran did not provide a birth certificate demonstrating that M. was his mother. In this regard, the Board observes that in an October 1, 2018, letter, VA requested that the Veteran submit his birth certificate, advising him that a decision may be made on his claim for dependency benefits in 30 days. On November 4, 2018, the Veteran submitted a copy of his birth certificate. Despite this, in the November 13, 2018, decision on appeal, VA denied the claim for dependency benefits on the inaccurate basis that the Veteran had failed to provide the requested birth certificate. The Board thus finds that the Veteran timely provided the information requested of him by VA. Turning to the evidence in this case, in August 2018, the Veteran submitted VA Form 21P-509, Statement of Dependency of Parent(s). The Veteran reported that M. lives in a home with present market value of $241,255.00, with an encumbrance on the property in the amount of $312,835.00. Her monthly income included approximately $800 from Social Security. The Veteran reported his mother's monthly expenses as follows: $310 for utilities (gas, power, water); $300 for groceries; $40 for telephone; and $191.47 for property tax. The Veteran indicated that he assisted with his mother's expenses as needed. Based on the information provided in the August 2018 Form 21P-509, M.'s total monthly expenses were $841.47, more than her monthly income of $800. The Board notes that the Veteran provided the same address for himself and M. Subsequently, in January 2020, the Veteran submitted an updated VA Form 21P-509. He stated that M. owns a home with a value of $365,000 and an encumbrance on the property of $359,000. Her monthly income included $829.00 from Social Security and $39.00 from a retirement fund. The Veteran reported his mother's monthly expenses as follows: $208.33 in property taxes; $76.67 for home insurance; $300 in credit card bills; $30 for electricity; $80 for water; and $48 for a cell phone. The Veteran indicated that he provided supplemental income for his mother's expenses. Based on the information provided in the January 2020 VA Form 21P-509, M.'s total monthly expenses were $743.00, slightly less than her monthly income of $868. While there is some variance in the income and expense information provided in the VA Forms 21P-509 submitted in August 2018 versus January 2020, the Board notes that there is no evidence of a substantial change in M.'s financial circumstances during the period on appeal. Resolving reasonable doubt in favor of the Veteran, the Board finds that the August 2018 VA Form 21P-509 is the most probative evidence of record regarding M.'s monthly income and expenses. Since the Veteran's mother's income exceeds the monthly amounts stated 38 C.F.R. § 3.250(a)(1), dependency will be determined on the facts in the individual case under the principles outlined in 38 C.F.R. § 3.250(b). Based on the evidence of record, to include the Veteran's August 2018 statements concerning his mother's dependency and related living expenses, the Board finds that his mother meets the criteria for recognition as the Veteran's dependent parent pursuant to 38 C.F.R. § 3.250. As noted above, as of August 2018, the Veteran's mother's total monthly expenses exceeded her monthly income. The Board finds that the reported expenses fall within the category of reasonable maintenance, as defined by 38 C.F.R. § 3.250(b). Moreover, although the Veteran's mother appears to own a home (valued at $241,255.00 in 2018), a single-family unit (including a reasonable lot area and personal effects suitable to and consistent with a reasonable mode of life) are not considered part of the "corpus of estate" or "net worth" of a claimant. See 38 C.F.R. § 3.275(b). Furthermore, the Board finds that housing is an essential part of "reasonable maintenance," and costs of housing must be included in determining her expenses. Thus, it is clear that the Veteran's mother, M., is dependent on the Veteran to provide her with financial support and reasonable maintenance. For these reasons, the Board finds that the probative evidence of record supports a finding that the Veteran's mother's monthly expenses for "reasonable maintenance" significantly exceed her monthly income. See 38 C.F.R. § 3.250(b). As such, the appeal is granted. Cynthia M. Bruce Veterans Law Judge Board of Veterans' Appeals Attorney for the Board T. Sherrard, Counsel The Board's decision in this case is binding only with respect to the instant matter decided. This decision is not precedential and does not establish VA policies or interpretations of general applicability. 38 C.F.R. § 20.1303.