How To Transfer Your Gi Bill Benefits To Family Members

October 09, 2017 October 09, 2017

In 2009 the benefits provided by the post 9/11 GI Bill became much more immense as servicemembers were presented with the option to transfer GI Bill benefits to their immediate family members in exchange for more time served in active duty. This was a welcome and unprecedented development: no other veteran benefit plan had the option of transferring military benefits to family members except posthumously. The request to transfer GI Bill benefits must be done while an individual is in active service to the armed forces. This piece will highlight the important steps to take in order to successfully carry out a GI Bill transfer to your family members.

ELIGIBILITY OF TRANSFERER AND TRANSFEREES

It’s important to note that not all members of the Armed Forces and their family members are eligible to participate. Qualifying military servicemembers must meet the following requirements in order to be eligible to transfer GI Bill benefits to a spouse or children:

• They must have served six years or more in the armed forces – that’s active duty or selected reserve - on the date in which the transference is approved and agree to serve for four more years from the date of election;
• Agree to serve for the maximum amount of years required by the policy;
• Transfer of GI Bill benefits request must be approved while he/she is still active in service.

Eligible Servicemembers may transfer all 36 months or the portion of unused Post-9/11 GI Bill benefits (unless DoD or the Department of Homeland Security has limited the number of transferable months). Servicemembers can exclusively transfer GI Bill benefits to spouse or children. Dependents that are receiving GI Bill benefits also need to meet certain requirements in order to be eligible for the transferred benefits.

• Dependent family member must be aged 18 years or over;
• Some benefits demand special registration, for instance, family members have to be enrolled in the Defence Eligibility Enrolment Reporting System (DEERS) to be eligible for TRICARE;
• Change in the marital status of a child does not affect his/her eligibility to educational benefits but an individual has the right to modify or revoke the transfer whenever they deem fit;
• In the possible event of a divorce, the individual’s spouse still remains eligible for educational benefits, however, an individual still retains the right to either retain or revoke the transfer anytime.

Use of the GI Bill educational benefits by a family member is subject to the rules outlined below:

CHILDREN:

• Allowed to begin using GI Bill benefits only after the servicemember making the transfer has served for at least 10 years in the armed forces;
• May use the benefit while the servicemember remains in the armed forces and also after separation from duty;
• May not use the benefit until he or she has attained a high school diploma or its equivalent;
• Is eligible to receive monthly housing allowance payments even whilst the eligible individual is on active duty;
• Cannot use the benefit once they turn 26.

SPOUSES:

• Can start using the benefits immediately;
• Can continue using the benefits even after the servicemember is separated from active duty;
• Are not eligible to receive the monthly housing allowance while the servicemember is still serving on active duty;
• Are allowed to use the benefits for up to 15 years after the servicemembers the last separation from active duty;
• Are still eligible to the benefits after the divorce but this is subject to the servicemember’s permission.

Once it has been determined that you and your immediate family members are eligible for the GI Bill benefits, it is important to begin the registration process. Please note that the payments of these benefits are made directly into the recipients' account via direct deposit. Outlined below are the few quick steps to take in order to transfer GI Bill benefits:

• While in the armed forces, transferors use the Transfer of Education Benefits (TEB) website to designate, modify, and revoke a Transfer of Entitlement (TOE) request.
• Upon approval, family members may apply to use transferred benefits by completing and mailing the VA Form 22-1990e to your VA Regional processing office of jurisdiction.

To change from one school or training program to another, individuals receiving benefits under the Post-9/11 GI Bill will need to submit a VA Form 22-1995 to the Regional Processing Office serving your state. Individuals receiving benefits under the Dependents Educational Assistance Program will need to submit VA Form 22-5495. The VA Form 22-5490 can be used to apply for Survivors' and Dependents' Educational Assistance Program. All forms can be submitted online.

Each student receiving benefits is mailed the 1098-T form, also referred to as the "Tuition Payment Statement". Since 2012 VA Benefits received under the Post 9/11 GI Bill are now reported as scholarships on the 1098-T form in Box 5. Although VA benefits are not considered a resource when need is calculated, the IRS has recently defined Box 5 to include payments received from governmental entities. There is no requirement for the 1098-T to be attached along with your tax return, it should be kept for your personal records.

Making sure you know all there is about the transfer of GI Bill benefits to children or your spouse is a sure way to secure your family's future. What are you waiting for?