Unlike the Montgomery GI Bill, there is as of Aug 1 2009 a new GI Bill available to all who were active duty Sept 11, 2001 called the Post 9/11 GI Bill.
There are many Post 911 GI Bill books & briefs out there and this subject is complicated to say the least. The Post 911 GI BILL is a great benefit.
Here is the deal: If you have served at least 90 days active duty since Sept 11, 2001 you yourself are eligible for the benefits. If you have served 6 years since Sept 11 2001, you are eligible to transfer the benefits and distribute them as you see fit to your wife/husband or kids (including stepchildren enrolled in DEERS) in any percentage as desired.
Once you are eligible to transfer and desire to transfer your benefits you are obligated to serve an obligated 4 years of incurred additional obligated service (UNLESS) you have 20 years of service and are retirement eligible. Then you will not be required to serve the additional commitment due to inner service policy of you being retirement eligible (20 yrs+). All branches of service are using the same transferability requirements as taken from the bill below.
As of May 1, you can go on the http://www.gibill.va.gov/ site and register for your own benefit eligibility. As of June you can go and delegate your benefits to your spouse/dependants. Not until Aug 1, 2009 is anything going to get paid or activated.
Example: A SgtMaj with 20+ years, active duty. He is eligible for the benefits because he was on active duty at least 90 days since Sept 11, 2001.
He is also eligible to transfer the benefits because he has 6 years of active duty or select reserve service since Sept 11, 2001. Now he can transfer the benefits to his spouse or dependant any way he wishers and can change that amount up until he is off active duty. Because he has over 20 years he is considered "retirement eligible" and does not have to fulfill the incurred additional obligated service (i.e. 4 years) because of the inner service policy. He must make the transfer percentage while he is on active duty and cannot change his election once off of active duty. His spouse may use the benefits immediately, his dependant must wait until they are 18yrs old and can only have the benefits delegated to them until they are 23 (after 23 you cant give them any
benefits) and finally your dependant must use the benefits before they turn 26. Benefits also include a stipend for your dependant (or whoever you delegate the benefits to (including yourself)) receiving a BAH while at school of that of a Sgt. All benefits are non taxable as well.
Here is the main website to help as well as educational material attached.
Main GI Bill Website: http://www.gibill.va.gov/
If you have questions, email Maj Pain & I will see what I can do to answer them at firstname.lastname@example.org