Veterans' Compensation and Benefits Improvement Act of 1987

Veterans' Compensation and Benefits Improvement Act of 1987 - Title I: Disability Compensation and Dependency and Indemnity Compensation Rate Increases - Increases veterans' disability compensation, dependency and indemnity compensation, and the clothing allowance for certain disabled veterans, effective on December 1 annually, by a certain percentage change which is based on the Consumer Price Index. Requires the Administrator of Veterans Affairs to publish such increases in the Federal Register as soon as practicable. Authorizes the Administrator to administratively adjust disability compensation for certain disabled veterans not otherwise in receipt of service-connected disability benefits.

Title II: Adopted Child and Income Exclusion Amendments - Expands the definition of "child" (for purposes of eligibility for veterans' survivors' benefits) to include children orphaned by the death of both parents and properly recommended for adoption by a government-operated child welfare or child placement agency.

Revises the definition of "income" (for purposes of eligibility for veterans' benefits) to exclude from income reimbursement of any kind for any casualty loss.

Title III: Miscellaneous Amendments - Amends the Further Continuing Appropriations Act, 1983 to revise provisions concerning the payment of certain benefits to the surviving spouse and children of veterans who die as a result of in-service or service-connected incidents.

Authorizes the Administrator of Veterans Affairs to request from the Secretary of the military department concerned that such Secretary collect any portion of an indebtedness of a veteran that results from overpayment to such veteran by the Veterans Administration of any veterans' benefit. Outlines administrative provisions concerning the collection of such overpayments.

Requires mandatory disclosure of claimants' and dependents' social security numbers in all claims for disability and survivors' benefits.