Mark
There is a law 38 USCODE Section IV, Paragraph 5301 that is entitled NON ASSIGNABILITY OF VETERANS BENEFITS. The law specifies that the Veteran's benefits are not only untaxable, but unassignable by law by any authority other than the Veterans Administration. Click on the link below and type in 5301 in the search option and you will get 12 hits in the 38 USCODE.
http://www4.law.cornell.edu/uscode/html/uscode38/usc_sup_01_38.html
I will forward this information to firebase adrian .
Dave