If you’re a surviving spouse, child, or dependent parent of a deceased veteran, you may be entitled to VA accrued benefits.
Unfortunately, sometimes a veteran will die before their claim is finalized and the VA pays out their benefits. When this happens, eligible beneficiaries may be owed this unpaid compensation, known as accrued benefits. Accrued benefits can be confusing, but understanding how they work can help you get the compensation you are owed.
In this article, we discuss what VA accrued benefits are, who is eligible, and how to get them.
Let’s get started today
In this article about VA accrued benefits:
What are VA accrued benefits?
VA accrued benefits are benefits owed to a veteran that were not paid out before their death. When a veteran dies, those unpaid benefits may be owed to a beneficiary such as a surviving spouse, child, or dependent parent.
Accrued benefits refer to the compensation a veteran is owed based on evidence that is already on file with the VA. No additional evidence can be submitted to claim accrued benefits.
Examples of when accrued benefits may be owed include:
- A claim or appeal for VA benefits was pending at the time of the veteran’s death, but the VA had all the evidence needed for a favorable decision.
- A claim for VA benefits had been granted but the veteran died before receiving the award.
- One or more benefit checks had not been deposited or negotiated at the time of the veteran’s death.
Who is eligible to receive VA accrued benefits?
The VA pays accrued benefits based on the relationship of the claimant to the deceased veteran. A surviving spouse, should one exist, is first in line for payment. The hierarchy of VA accrued benefits and how payment is allocated is outlined below.
- Surviving spouse: Receives the full amount
- Dependent children: Equal shares divided among children including those between 18 and 23 years old who are attending school and those at any age who are unable to care for themselves
- Both dependent parents: Equal shares divided between both if parents are dependent at the time of the veteran’s death
- Sole dependent parent: Full amount awarded to the sole surviving parent if they are dependent at the time of the veteran’s death
If there is no eligible living person to receive accrued benefits, the VA pays based on reimbursement. Keep reading for more information on reimbursement.
Accrued benefits based on reimbursement
In some cases, there is no eligible living family member available to receive accrued benefits.
When this happens, a reimbursement payment may be made to the person responsible for the veteran’s burial. The compensation serves as reimbursement for burial costs and last illness expenses. The amount that can be reimbursed, however, is limited to the actual expenses and cannot exceed the available accrued benefits.
A VA claim for reimbursement must be submitted by the person whose funds covered the burial and last illness expenses. If the estate of the deceased beneficiary pays, an executor of the estate should submit the claim for reimbursement.
VA substitution of claimant and accrued benefits
Substitution is another way to claim accrued benefits. If a veteran dies while their claim is pending, a substitute claimant may be considered.
Substitution allows a person eligible for accrued benefits to substitute for the original, deceased veteran on a pending claim. With this option, the substitute may submit new evidence to support the claim for accrued benefits.
Perhaps one of the best parts about a substitution is that the claim can be transferred to another person instead of filing a new claim and starting the process all over again.
As VA disability lawyer Zack Evans puts it, “An accrued claim stops the race. You go back to the starting line, and you have to wait for the gun again. But a substitution is a simple hand off of the claim. It’s much faster, and a huge advantage of substitution claims is that you can submit new evidence.”
Substitution claims must be submitted to the VA within one year of the death of the original claimant. If the substitute dies, the next substitute has one year from the original substitute’s death to file a substitution claim.
How to get accrued benefits from the VA
In most cases, the VA must receive a claim for accrued benefits within one year of the veteran’s death.
To file a claim for VA accrued benefits, the eligible survivor(s) must submit the appropriate application and supporting documents. Each person claiming a portion of the benefits should submit a separate application.
Based on your relationship to the deceased veteran and your situation, you will need to complete one of the following applications:
- To file a claim for accrued benefits, use VA Form 21P-601: Application for Accrued Amounts Due a Deceased Beneficiary
- To request a substitution, use VA Form 21P-0847: Request for Substitution of Claimant Upon Death of Claimant
- For reimbursement, use VA Form 21P-601: Application for Accrued Amounts Due a Deceased Beneficiary
To support your claim, you will need submit the applicable documentation:
- Copy of the veteran’s DD214
- Copy of the veteran’s death certificate (unless they died in a VA medical facility)
- Proof of your relationship to the deceased veteran
- Certified copy of the letters of administration or letters testamentary bearing the signature and seal of the appointing court if an executor or administrator of the beneficiary’s estate has been assigned
- Documentation of all expenses incurred to cover last illness and/or burial if you’re claiming reimbursement
VA lump sum accrued benefits
If benefits were withheld from a competent veteran during a VA hospital, VA institutional, or VA domiciliary care, claimants may be eligible to receive accrued benefits in a lump sum.
To file a claim for VA lump sum accrued benefits, you must file within five years from the veteran’s date of death. The line of succession for payouts are the same as accrued benefits discussed above, starting with a surviving spouse.
How Woods & Woods can help
At Woods & Woods, we focus on helping non-working veterans with service-connected conditions get individual unemployability benefits and, in some cases, increased ratings. We also help survivors of veterans receive their DIC benefits. If you think we can help you with your claim, call us today for a free case evaluation. You won’t pay us unless we take and win your case.
Our team is ready to help
Frequently asked questions
VA accrued benefits are the benefits owed to a veteran that were not paid out before his or her death. Following the death of a veteran, those benefits may be owed to a beneficiary such as a surviving spouse, child, or dependent parent. Accrued benefits is the compensation owed to a veteran based on evidence that is already on file with the VA.
To file a claim for VA accrued benefits, the eligible survivor(s) should submit the appropriate application and supporting documents. Each person claiming a portion of the benefits should submit a separate application. Based on your relationship to the deceased veteran and your specific situation, submit 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.
Neil Woods
Neil Woods is a VA disability attorney and the owner and president of Woods & Woods. He received his law degree from Western Michigan University.
