True or False: After a finding of incompetency, the VA will not release retroactive payment unless hardship is shown.

The correct statement is that after a finding of incompetency, the VA will not release retroactive payment unless hardship is shown. This means that if a veteran is deemed incompetent to manage their finances, the Department of Veterans Affairs withholds retroactive benefits to ensure that these funds are not mismanaged or squandered. The requirement to demonstrate hardship acts as a safeguard, allowing funds to be released only when it is clear that the veteran is in dire need and would benefit from receiving those payments.

This policy is put in place to protect veterans and ensure that they only receive their benefits when there is a legitimate financial need. It highlights the VA's commitment to responsible financial management for those who are deemed incompetent, ensuring funds are used in a manner that supports the veteran's wellbeing.

Other options, such as suggesting that payments could be released under other circumstances without demonstrating hardship or implying a case-by-case assessment across the board, do not accurately reflect the strict guidelines surrounding the release of payments for those found incompetent.