Veterans' Benefits Programs Modification Act of 2001

Veterans' Benefits Programs Modification Act of 2001 - Amends Federal veterans' benefits provisions to: (1) exclude from annual income, for purposes of eligibility for veterans' pension, the proceeds of any life insurance policy or any other non-recurring income from any source; (2) repeal a provision providing an effective date for the award of death pension for which application is received within 45 days of such death; (3) provide an effective date for the reduction or discontinuance of compensation or pension by reason of a change in recurring income; (4) prohibit the payment of any benefit if information required of a claimant is not received by the Secretary of Veterans Affairs within one year; (5) prohibit veterans who are fugitive felons, or their dependents, from receiving any veterans' benefit during such fugitive period (requiring the Secretary to enter into a memorandum of understanding with State and local law enforcement agencies to furnish latest address information on such veteran); (6) prohibit payment of compensation to veterans remaining incarcerated for felonies committed before October 7, 1980; (7) revise, generally, the delimiting period for the use of educational assistance by a veteran with a total service-connected disability or by his or her survivors or dependents; (8) repeal the 500 per fiscal year limit on the number of veterans authorized to participate in programs of independent living services and assistance; and (9) increase from $50,750 to $63,175 the veterans home loan guaranty limit.