Gloria J. Greer v. Denis McDonough

CourtUnited States Court of Appeals for Veterans Claims
DecidedJune 12, 2023
Docket20-3047
StatusPublished

This text of Gloria J. Greer v. Denis McDonough (Gloria J. Greer v. Denis McDonough) is published on Counsel Stack Legal Research, covering United States Court of Appeals for Veterans Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gloria J. Greer v. Denis McDonough, (Cal. 2023).

Opinion

UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

No. 20-3047

GLORIA J. GREER, APPELLANT,

V.

DENIS MCDONOUGH, SECRETARY OF VETERANS AFFAIRS, APPELLEE.

On Appeal from the Board of Veterans' Appeals

(Argued November 1, 2022 Decided June 12, 2023)

Kenneth M. Carpenter, of Topeka, Kansas, for the appellant.

Shanthala Raj, with whom Richard J. Hipolit, Deputy General Counsel; Mary Ann Flynn, Chief Counsel; and Sarah W. Fusina, Deputy Chief Counsel, were on the brief, all of Washington, D.C., for the appellee.

Before BARTLEY, Chief Judge, and TOTH and JAQUITH, Judges.

TOTH, Judge: Gloria Greer, the daughter and substitute in this appeal of Army veteran Walter Brinkman, challenges a January 2020 Board decision that denied her father entitlement to non-service-connected pension benefits. The Board determined that the veteran's net worth, which included a family trust, rendered him ineligible for those benefits. This appeal concerns two issues of first impression. First, whether the Board must provide notice of its decision that complies with the requirements of 38 U.S.C. § 5104(b) as amended by the Veterans Appeals Improvement and Modernization Act of 2017, which has come to be referred to as the "AMA." Second, whether the Board must obtain an expert legal opinion when interpreting a purportedly complex document such as the trust agreement in this case. We answer both questions in the negative. But we nevertheless remand for the Board to cure inadequacies conceded by the Secretary in its statement of reasons or bases.

I. BACKGROUND Mr. Brinkman served in the Army from 1951 until 1953. In July 2018, he established the Brinkman Family Wealth Defender Trust (Trust). The following month, he applied for non- service-connected pension. VA requested additional information from the veteran regarding the disparity between the income he reported on his application and the amount the IRS reported to VA for 2017 and that the veteran submit VA Form 21-8049, Request for Details of Expenses. Mr. Brinkman responded but did not submit the requested form. In March 2019, VA informed him that, although it did not receive the requested form, intervening changes in the pension regulations required the veteran to submit a different form containing asset and property transfer information. Mr. Brinkman completed and submitted the new form, and the claim progressed. Prior to the initial decision, VA requested more information about the Trust. Mr. Brinkman reported the value of the Trust assets as $191,169.06 and provided a copy of the Trust agreement. After reviewing all the information of record, the VA Pension Management Center (PMC) denied the veteran's claim in a June 2019 decision because it found that his net worth was a bar to pension. That is, that the corpus of his estate comprising the Trust assets and other property was sufficient to meet his basic needs without VA assistance. (VA uses the terms "corpus of the estate" and "net worth" as synonyms.) Mr. Brinkman sought higher-level review under the AMA, asserting that VA did not explain its determination that the Trust assets were accessible to him and therefore countable as part of his net worth. When the Agency adhered to its prior determinations he appealed to the Board, reiterating that he did not have access to the Trust assets. The Board then issued the decision on appeal. It first determined that the October 2018 change in pension regulations—which established a bona fide net worth limit of $123,600 for pension eligibility—did not apply to Mr. Brinkman because his claim was received in August 2018. Accordingly, the Board assessed his net worth under the prior regulations, which did not include a specific net worth cap. Rather, these regulations required the Board to determine whether the corpus of the estate of the Veteran (and that of any spouse), is such that under all the circumstances, including consideration of the annual income of the Veteran, his spouse, and any cohabitating children, it is reasonable that some part of the corpus of such estate be consumed for the Veteran's maintenance. R. at 7 (citing 38 U.S.C. §§ 1521, 1522; 38 C.F.R. § 3.274 (2018)); see also 38 C.F.R. § 3.263 (2018) (Corpus of estate; net worth). Net worth is determined by ascertaining "the market value, less mortgages or other encumbrances, of all real and personal property owned by the Veteran except the Veteran's dwelling and personal effects." Id.; see 38 C.F.R. § 3.275(b) (2018). And whether it is reasonable that some part of a veteran's estate should be consumed for his maintenance includes consideration of the veteran's income, the feasibility of converting property into cash without substantial sacrifice, the veteran's life expectancy, the number of dependents, and the rate

2 of depletion of the veteran's estate. 38 C.F.R. § 3.275(d). Summarizing these provisions, the Board stated: "Essentially, pension entitlement is based on need and that need does not exist if the Veteran's estate is of such size that he could use it for living expenses." R. at 8. The Board listed the PMC's findings and noted the veteran's contrary argument that the Trust assets should not be included in net worth calculations because he could not access them. After independently reviewing the terms of the Trust agreement, the Board rejected that argument, finding that the Trust's purpose is "to provide financial assistance to the Veteran during his lifetime, and to maximize government and public assistance for the Veteran while preserving the estate for his children." Id. The Board identified two aspects of the Trust agreement to support this reading. First, the Trust was to be liquidated at the veteran's death and distributed to named beneficiaries. Second, the Trust established a "Supplemental Needs Trust" under the laws of Indiana for an unnamed "Beneficiary"—i.e., the veteran—for the purpose of providing for that Beneficiary's care and maintenance where "such is not provided for 'by any public agency, office or department of any state or the United States.'" R. at 9 (quoting R. at 88). Further, the trustee of the Supplemental Needs Trust is specifically directed to maximize benefits from government or private assistance programs on the Beneficiary's behalf; not use Trust funds where it may "supplant, impair or diminish any governmental benefits or assistance for which Beneficiary may be eligible or . . . may be receiving"; and to shut down the Supplemental Needs Trust where its existence would "result in a reduction or loss of Beneficiary's entitlement program benefits." Id. (quoting R. at 87). Based on this reading, the Board considered the Trust value along with the veteran's other assets and determined he was not eligible for pension on the ground that his net worth was too high. Mr. Brinkman appealed to this Court but, unfortunately, passed away while his case was pending. The Court then granted Ms. Greer's unopposed motion to substitute as the appellant.

II. ANALYSIS Ms. Greer's appeal does not reach the merits of the Board's analysis. Instead, she raises two preliminary allegations of error.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell v. New Jersey
461 U.S. 773 (Supreme Court, 1983)
Robinson v. Shell Oil Co.
519 U.S. 337 (Supreme Court, 1997)
Hibbs v. Winn
542 U.S. 88 (Supreme Court, 2004)
Davidson v. SHINSEKI
581 F.3d 1313 (Federal Circuit, 2009)
Nicholas Ribaudo v. R. James Nicholson
21 Vet. App. 137 (Veterans Claims, 2007)
Angel S. Nieves-Rodriguez v. James B. Peake
22 Vet. App. 295 (Veterans Claims, 2008)
Rick K. Kahana v. Eric K. Shinseki
24 Vet. App. 428 (Veterans Claims, 2011)
Malachowski v. Bank One, Indianapolis
590 N.E.2d 559 (Indiana Supreme Court, 1992)
King v. Burwell
135 S. Ct. 2480 (Supreme Court, 2015)
Bank Markazi v. Peterson
578 U.S. 212 (Supreme Court, 2016)
Sneed v. McDonald
819 F.3d 1347 (Federal Circuit, 2016)
Taylor Energy Company LLC v. United States
975 F.3d 1303 (Federal Circuit, 2020)

Cite This Page — Counsel Stack

Bluebook (online)
Gloria J. Greer v. Denis McDonough, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gloria-j-greer-v-denis-mcdonough-cavc-2023.