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Updated Nov 21, 2024
In This Section
This section contains the following topics:
Topic
Topic Name
1
2
3
4
5

1.  General Information on Eligibility Under 38 U.S.C. 5121

Introduction
This topic contains general information on eligibility to accrued benefits, including

Change Date
February 19, 2019

XI.ii.3.A.1.a.  Definition:  Accrued Benefits
Accrued benefits are benefits due to the beneficiary but not paid prior to death.
Reference:  For more information on entitlement to accrued benefits, see

XI.ii.3.A.1.b.  Basic Eligibility for Accrued Benefits
If death occurred on or after December 1, 1962, monetary benefits, other than insurance and servicemembers’s indemnity, may be authorized.
Payment may be made for benefits
  • to which a payee was entitled at the date of death under existing ratings or decisions, or
  • which are based on evidence in the file at the date of death and due and unpaid.
Important:  The evidence in the file at the date of death must be evidence related to a claim that has not been finally adjudicated.  To be considered “in file,” the evidence must be in the Department of Veterans Affairs’ (VA’s) possession.
Exception:  A claimant eligible for accrued benefits, upon a grant of a request to substitute, may continue the initial claim, supplemental claim, higher-level review (HLR), legacy appeal, or appeal on behalf of the deceased claimant for purposes of processing the initial claim, supplemental claim, HLR, legacy appeal, or appeal to completion.
References:  For more information on

2.  Pending Claims

Introduction
This topic contains general information on pending claims, including the definition of

Change Date
May 2, 2023

XI.ii.3.A.2.a.  Definition:  Claim Pending at the Date of Death
A claim pending at the date of death means a claim that had not been finally adjudicated on or before the date of death, including a deceased claimant’s
  • initial claim
  • informal claim received prior to March 24, 2015
  • supplemental claim
  • request for an HLR
  • claim to raise a clear and unmistakable error in a prior rating or decision
  • claim in which the period to file a review option has not yet expired, or
  • claim in which funds were withheld pending appointment of a fiduciary.
Note:  All withheld funds awaiting the appointment of a fiduciary not paid prior to claimant’s death may be paid as accrued benefits.
Reference:  For more information on the definition of claims pending at the date of death, see

XI.ii.3.A.2.b.  Definition:  Legacy Appeals Pending on the Date of Death
A legacy appeal pending at the date of death means a deceased claimant’s
  • pending notice of disagreement on a decision rendered before February 19, 2019
  • statement of the case in which the applicable decision review period has not expired and the appellant has not opted into the new modernized system, and
  • substantive appeals or administrative appeals pending at the time of death, including issues on appeal to the
    • Board of Veterans Appeals (Board), or
    • Court of Appeals for Veterans Claims (CAVC).
Notes:
  • If the Board issued a final decision prior to the claimant’s death, the appeal is not pending before VA, even if the 120-day period for appealing the Board’s decision to CAVC has not yet expired.
  • If the Board’s decision, whether favorable or unfavorable, was issued after death of the original claimant, it is a nullity.
References:  For more information on

3.  Elections and Automatic Increases Pending on the Date of Death

Introduction
This topic contains general information on elections and automatic increases pending on the date of death, including

Change Date
May 7, 2009

XI.ii.3.A.3.a.  Elections Not Acted Upon at Time of Death
Treat an election by the deceased beneficiary not acted on at the time of death as though the decedent was still living.
Note:  Pay any increase as accrued under 38 U.S.C. 5121.
Reference:  For more information on elections, see M21-1, Part VI, Subpart ii, 1.A.

XI.ii.3.A.3.b.  Election of Disability Compensation in Lieu of Retired Pay
If a Veteran was in receipt of retired pay from a service department on the date of their death and had either filed a claim for or formally elected to receive a greater rate of VA disability compensation, then accrued disability compensation may be payable.  The guidelines listed below should be followed in such cases.
  • Before preparing an award of accrued, request that the service department furnish the monthly rates paid and the periods for which they were paid, including payments to survivors of amounts of retired pay remaining unpaid at the time of the Veteran’s death.
  • Determine the amount payable by deducting the amount of retired pay paid from the amount of disability compensation payable over the same period of time.

XI.ii.3.A.3.c.  Automatic Increases Not Affected Prior to Death
Failure to make an automatic adjustment to authorize an increased rate payable on a Veteran’s award may be the basis for payment of accrued benefits.
When making the award of accrued benefits payable, authorize the increase as if the action had been timely taken, subject to the two-year limitation on the period concerned if death occurred prior to December 16, 2003.
The amount payable as accrued lump sum from funds withheld from a minor or incompetent beneficiary is not affected by an automatic increase, since the automatic increase is payable as accrued only under 38 U.S.C. 5121.
References:  For more information on

4.  Evidence in File

Introduction
This topic contains general information on the evidence in the file, including

Change Date
September 29, 2015

XI.ii.3.A.4.a.  General Policy Information
Do not request rating action for accrued purposes unless evidence was in the file at the date of death to establish entitlement.
The rating activity is responsible for determining if the medical evidence necessary for a rating determination was in the file at the date of death.
Authorization determines if all other evidence necessary to support an award was on file at the date of death.
Note: Evidence showing that the claimant is an eligible person to receive accrued benefits does not need to be in the file at the date of death.
References:  For more information on

XI.ii.3.A.4.b.  Definition:  Evidence in the File at the Date of Death
Evidence in the file at date of death means evidence in VA’s possession on or before the date of the beneficiary’s death, even if the evidence was not physically located in the VA claims folder on or before the date of death.

XI.ii.3.A.4.c.  Definition:  Evidence in VA’s Possession
Evidence in VA’s possession means evidence physically located at any VA facility, including, but not limited to
  • VA regional offices
  • VA insurance centers
  • VA medical centers
  • VA outpatient clinics
  • Vet Centers, and
  • the Records Management Center.
Note:  Evidence in VA’s possession does not include Federal court records.

5.  Entitlement on the Basis of Relationship

Introduction
This topic contains information on entitlement on the basis of relationship, including

Change Date
November 21, 2024

XI.ii.3.A.5.a.  Entitlement to Accrued Benefits
Entitlement to accrued benefits vests according to the line of succession established by law.  The fact that a preferred beneficiary fails to file or prosecute a claim does not permit payment of their share of accrued benefits to a person or persons having an equal or lower preference.  A waiver of right also does not permit such payment.
Reference:  For more information on the line of succession, see 38 CFR 3.1000(a).

XI.ii.3.A.5.b.  Entitlement Upon the Death of a Veteran
Upon the death of a Veteran, accrued benefits are payable to the living person first listed below.
When the person entitled is the …
The accrued is payable in …
surviving spouse
full to the surviving spouse.
Important:  Complete marital history must be of record or submitted with the accrued application when a potential surviving spouse (who has not been established on the Veteran’s award) is attempting to qualify for accrued benefits based on relationship status, and the claimant submitted VA Form 21P-601, Application for Accrued Amounts Due a Deceased Beneficiary or VA Form 21P-0847, Request for Substitution of Claimant Upon Death of Claimant.
If marital history is incomplete, follow the guidance in M21-1, Part XI, Subpart ii, 3.C.3.d to notify the claimant of the incomplete accrued claim.
Reference:  For more information on the definition of spouse, see 38 CFR 3.1000(d)(1).
Veteran’s children
equal shares.
References:  For more information on
parents (both)
equal shares, if dependent at the date of the Veteran’s death.
Reference:  For more information on the definition of dependent parent, see 38 CFR 1000(d)(3).
sole surviving parent
full to the sole surviving parent, if dependent at the date of the Veteran’s death.
Notes:
  • Although documentary evidence is always required to establish an individual as a Veteran’s parent, documentary evidence to establish spousal or child relationship for accrued purposes is only required in some situations.
  • Before a claims processor determines development is needed to establish relationship status for accrued entitlement, they must review the evidence of record to see if documentary evidence has already been submitted.  This includes evidence received as a result of prior verification done under M21-1, Part VII, Subpart i, 1.B.
References:  For more information on documentary evidence requirements for a

XI.ii.3.A.5.c.  Entitlement Upon the Death of a Surviving Spouse or Child
The table below lists the person(s) entitled to accrued benefits upon the death of a surviving spouse or child.
If the death is that of a … 
Then the accrued is payable to the …
surviving spouse
Veteran’s children.
Note:  Accrued Dependents’ Educational Assistance (DEA) of a spouse is payable only as reimbursement under 38 CFR 3.1000(f).
child
surviving child or children on the basis of relationship with the exceptions as listed below.
Notes:
  • If the deceased child was entitled to an apportioned share of the surviving spouse’s award, the accrued benefit is payable only as reimbursement under 38 CFR 3.1000(b)(3).
  • If the deceased child was in receipt of Survivors Pension, compensation, or Dependency and Indemnity Compensation, a remaining child who has elected DEA benefits is entitled only to the unpaid benefits which became due and payable to the deceased child for periods prior to the commencement of DEA benefits to the surviving child.
Reference:  For more information on the definition of child, see 38 CFR 3.1000(d)(2).

XI.ii.3.A.5.d.  Rights of Persons Having Lower Preference
When a person having preferred entitlement dies, forfeits entitlement, or otherwise becomes disqualified before receiving and negotiating the check for their share of the accrued benefit, pay the next person entitled based on relationship or reimbursement, if a claim is timely filed.
Reference:  For more information on forfeiture, see 38 CFR 3.669.

XI.ii.3.A.5.e.  Payment to the Estate of the Preferred Claimant
If a person having preferred title has filed a claim, established entitlement, and died before payment and no other person within a permitted class or relationship survived, the accrued amount becomes payable as reimbursement to that individual’s estate if they were the payer of the expenses of last illness and burial of the deceased beneficiary.
Reference:  For more information on claims for reimbursement, see M21-1, Part XI, Subpart ii, 3.E.11.

XI.ii.3.A.5.f.  Evidence Requirements
Evidence is required to disqualify persons who would have the same or higher status of preference as the current claimant only if the record indicates that the person(s) that would be disqualified survived the deceased beneficiary.  Otherwise, statements of record received by VA prior to the death of the Veteran or primary beneficiary are adequate.
Note:  Evidence received on or with an accrued benefits claim, such as a death certificate or information provided on VA Form 21P-601, may be used to disqualify persons who would have had the same or higher status of preference.
Reference:  For more information on the line of succession, see 38 CFR 3.1000(a).