VA Accrued Benefits: What They Are and How to Qualify

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Understanding VA benefits can be challenging, especially when it comes to accrued VA benefits, which are often misunderstood or overlooked.

Whether you’re a surviving spouse, child, or dependent parent of a veteran, knowing your rights and how to navigate the VA claims process is crucial for ensuring you receive the benefits you’re entitled to.

In this article, we’ll break down the essentials of VA accrued benefits, explaining what they are, who qualifies, and how to apply.

We’ll also cover important timelines and documentation requirements to help you confidently navigate the process and avoid common pitfalls.

Let’s go!

Summary of Key Points

• Accrued VA Benefits Overview: Accrued benefits are payments due to a Veteran or beneficiary at the time of their death but were not paid before they passed away. These include unpaid compensation, pension, or other entitlements based on ratings, decisions, or evidence already in the Veteran’s file.

• Basic Eligibility Criteria: Accrued benefits are distributed in order of priority, starting with the surviving spouse, then children, and dependent parents. If no eligible family members exist, the benefits can be paid to the person responsible for the Veteran’s last illness or burial expenses.

• Application Process and Required Documents: To claim accrued benefits, eligible survivors must submit the appropriate VA forms along with supporting documents such as the Veteran’s DD214, death certificate, and any relevant billing statements. Claims must generally be filed within one year of the Veteran’s death.

• Special Circumstances and Appeals: If there’s no surviving spouse, child, or dependent parent, benefits may be paid to the person who paid for the Veteran’s final expenses. Claimants can appeal a denial of accrued benefits within one year of the decision.

What Are Accrued Benefits VA?

VA accrued benefits are benefits that were due to a Veteran or other beneficiary at the time of their death but were not paid before they passed away.

These benefits are often related to pending claims or appeals where all the necessary evidence was in VA’s possession but the decision wasn’t made or the payment wasn’t issued before the beneficiary’s death.

Accrued VA benefits can be one of the following:

• Pending Claim or Appeal: If a Veteran or other beneficiary had a claim or appeal for a recurring benefit (such as disability compensation or pension) that was still pending at the time of their death, and all evidence needed for a favorable decision was already in the VA’s possession.

• Approved But Unpaid Benefits: If the VA had approved a recurring benefit but the beneficiary passed away before the payment was made.

• Unnegotiated Payments: If the beneficiary passed away before one or more benefit checks were deposited or cashed.

Who Is Eligible to Receive Accrued Benefits From the VA?

Accrued benefits are distributed based on the claimant’s relationship to the deceased Veteran or beneficiary.

The line of succession for accrued benefits is established by law and must be followed strictly.

If a preferred beneficiary does not file a claim, payment cannot be made to a person of equal or lower preference.

Here’s how the eligibility is determined:

• Surviving Spouse: The full amount is payable to the surviving spouse.

• Children: Accrued benefits are divided equally among the Veteran’s children, including those between the ages of 18 and 23 who are attending school and those found helpless.

• Dependent Parents: If both parents were dependent on the Veteran at the time of death, they share the accrued benefits equally. If only one parent was dependent, they receive the full amount.

• Reimbursement: If there is no eligible person based on relationship, the VA may reimburse the person who paid for or is responsible for the Veteran’s last illness and burial expenses.

Here’s a simplified explanation of how accrued VA benefits are distributed, prioritized to the first eligible person from the chart below:

Relationship to the Deceased Veteran	Accrued VA Benefit
Surviving spouse	Full amount to surviving spouse
Dependent children, including those between the ages of 18 and 23 who are attending school and those who are found helpless	Equal shares among children
Parents (both)	Equal shares if parents are dependent at time of Veteran’s death
Sole surviving parent	Full amount to surviving parent, if dependent at the time of Veteran’s death

Special Rules for Different Scenarios

• Death of a Surviving Spouse: If the accrued benefit is due to the Veteran’s surviving spouse, it is payable to the Veteran’s children. However, accrued Dependent’s Educational Assistance (DEA) is payable only as reimbursement for the last illness and burial expenses.

• Death of a Child Beneficiary: If a child who was receiving benefits dies, the accrued benefits may be payable to the Veteran’s other children. If the deceased child was receiving death pension, compensation, or DIC, a remaining child who has elected DEA benefits is entitled only to the unpaid benefits due before the start of DEA benefits.

How to Qualify for Accrued Benefits

To qualify for accrued benefits, the evidence must show two things:

• Unpaid Benefits Owed: The VA owed the deceased claimant payments based on existing ratings, decisions, or evidence in the VA’s possession, but these payments were not made before the claimant died.

• Eligible Relationship: The claimant must be the surviving spouse, child, or dependent parent of the deceased Veteran, or someone who has paid for the Veteran’s last illness and burial expenses.

Required Documents to Apply

When applying for accrued benefits, you will need to submit the following documents to the VA:

• Veteran’s DD 214 or Other Separation Documents: These documents confirm the Veteran’s service and eligibility.

• Death Certificate: A copy of the Veteran’s death certificate showing the cause of death.

• Letters of Administration/Testamentary (if applicable): If there is an appointed representative of the beneficiary’s estate, a certified copy of the letters of administration or testamentary with the signature and seal of the appointing court is needed.

• Billing Statements for Reimbursement Claims: If you are submitting a reimbursement claim for last illness and burial expenses, provide billing and account statements showing the dates, nature, and costs of services, as well as proof of payment.

Filing a Claim for Accrued Benefits

To file a claim for accrued benefits, use the appropriate form based on your relationship to the deceased:

• VA Form 21P-601: Use this form if you are filing for general accrued benefits as a representative of the deceased’s estate or for reimbursement of last illness and burial expenses.

• VA Form 21P-534EZ: Use this form if you are a surviving spouse or child applying for Dependency and Indemnity Compensation (DIC), death pension, or accrued benefits.

• VA Form 21P-535: Use this form if you are a parent applying for DIC or accrued benefits due to the death of a veteran.

• VA Form 21P-0847: Use this form if you are requesting substitution as a claimant upon the death of the original claimant to continue a pending claim or appeal.

Time Limits for Filing an Accrued VA Benefits Claim

• Accrued Benefits: According to 38 U.S. Code § 5121, payment of certain accrued benefits upon death of a beneficiary, you must file a claim within one year of the beneficiary’s death or the date of notification to the beneficiary.

• Substitution Claim: You must file within one year of the original claimant’s death. If the substitute dies, the next substitute has one year from the original substitute’s death to file a claim.

Conclusion & Wrap-Up

VA accrued benefits are designed to ensure that payments owed to a deceased Veteran or beneficiary are not lost.

If you believe you qualify, make sure to gather all necessary documents and submit your claim promptly.

Understanding the eligibility criteria and filing requirements can help you secure the benefits you are entitled to as a surviving dependent or representative.

For further assistance or more information, contact the VA at 1-800-827-1000 or visit their Accrued Benefits page.

Accrued Benefits VA: Frequently Asked Questions (FAQs)

What Are Accrued Benefits?

Accrued benefits are payments that were due to a Veteran or other beneficiary at the time of their death but were not paid before they passed away. These benefits can include any unpaid compensation, pension, or other entitlements based on ratings, decisions, or evidence already in the Veteran’s file. These benefits are typically paid to eligible survivors, such as a spouse, children, or dependent parents. If no eligible family members are available, accrued benefits may be paid to the person who covered the Veteran’s last illness or burial expenses.

Who Is Eligible to Receive Accrued Benefits?

Accrued benefits are paid in the following order of preference:

• Surviving Spouse: Receives the full amount of accrued benefits.
• Dependent Children: Includes children between the ages of 18 and 23 who are attending school or children deemed helpless. The benefits are divided equally among eligible children.
• Dependent Parents: If both parents are dependent at the time of the Veteran’s death, they share equally. If there is only one surviving dependent parent, they receive the full amount. If none of these relatives are alive, the benefits may be paid based on reimbursement for last illness or burial expenses.

What Counts as Accrued Benefits?

Accrued benefits include any compensation, pension, or other payments that were due but not yet paid at the time of the Veteran’s death. This can be based on:

• An existing VA rating or decision.
• Evidence in the Veteran’s file at the time of their death that had not yet been finalized or processed for payment.
• A pending claim or appeal that had sufficient evidence for a favorable decision before the Veteran’s death.

How Are Accrued Benefits Paid Out?

Accrued benefits are paid first to the surviving spouse, then to children, then to dependent parents. If none of these are eligible or alive, the benefits can be used to reimburse individuals who paid for the Veteran’s last illness and burial expenses. The reimbursement is limited to the actual expenses incurred and cannot exceed the accrued benefits available.

What Happens If There’s a Pending Claim at the Time of Death?

If the Veteran had a claim or appeal pending at the time of their death, eligible survivors can continue the claim or file a new one for accrued benefits. This allows the survivor to complete the claim and potentially receive any benefits that would have been due to the Veteran.

How to Apply for Accrued Benefits?

To apply for accrued benefits, eligible claimants should submit VA Form 21P-601 (Application for Accrued Amounts Due a Deceased Beneficiary) along with required documents such as the Veteran’s death certificate, proof of relationship, and any other necessary evidence. For substitution, VA Form 21P-0847 should be used.

What Documents Are Needed to Support an Accrued Benefits Claim?

You will need:

• The Veteran’s DD214 or other separation documents.
• A copy of the Veteran’s death certificate showing cause of death.
• Letters of administration or testamentary with the signature and seal of the appointing court if a representative of the estate has been assigned.

If you are claiming reimbursement for last illness and burial expenses, provide all billing and account statements related to these expenses, showing the nature, dates, and costs of services provided, as well as proof of payment.

Who Can File for Reimbursement of Last Illness and Burial Expenses?

If no eligible family members are alive, anyone who paid for the Veteran’s last illness and burial expenses can file a claim for reimbursement. They must provide receipts and proof of payment along with VA Form 21P-601.

What Are the Time Limits for Filing a Claim?

Claims for accrued benefits must be filed within one year of the Veteran’s death or the date of notification to the beneficiary. Substitution claims must also be filed within one year of the original claimant’s death.

What is Substitution and How Does It Work?

Substitution allows a person eligible for accrued benefits to replace a deceased Veteran in a pending claim or appeal. The substitute claimant may submit additional evidence to support the pending claim or appeal, which could affect the amount of accrued benefits payable.

What Are the Rules for Reimbursement Claims?

Reimbursement claims can be filed by the person who paid for the last illness and burial expenses or by the executor or administrator of the deceased beneficiary’s estate if there are no eligible beneficiaries. Reimbursement is limited to actual expenses paid.

Are Lump Sum Payments Available for Accrued Benefits?

Yes, lump sum payments can be made for withheld benefits due to hospitalization or other reasons if the Veteran was entitled to them at the time of death. Accrued lump sum benefits are payable under the same rules as other accrued benefits.

What If the Veteran’s Disability Rating Changes?

If the Veteran’s disability rating changes before death, withheld amounts based on previous ratings are payable as accrued benefits. If the rating was erroneous due to fraud or lack of legal basis, those benefits are not payable.

Can You Receive Accrued Benefits If the Veteran Received Military Retired Pay?

If the Veteran received Military Retired Pay (MRP), the amount of accrued benefits depends on their eligibility for Concurrent Retirement Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC). The claims processor must assess whether the Veteran met these eligibility criteria to determine the accrued compensation.

How Are Non-Negotiated Benefits Handled?

Non-negotiated benefits are payments made to a beneficiary but not cashed before their death. They can be paid as accrued benefits but are not subject to retroactive limitations. If not claimable based on relationship, they may be paid to the deceased beneficiary’s estate unless the funds revert to the state.

What Are PFOP Accounts, and How Are They Managed?

Personal Funds of Patients (PFOP) accounts are managed by the VA for incompetent Veterans. These accounts hold funds deposited by VA, and accrued benefits are payable to eligible survivors or the Veteran’s estate upon their death.

What Is the Order of Preference for Accrued Lump Sum Benefits?

Accrued lump sum benefits are payable to the same individuals eligible for accrued benefits under 38 CFR 3.1000, including surviving spouses, children, and dependent parents.

How Is the Amount of Accrued Lump Sum Benefits Calculated?

The amount is based on prior awards in the Veteran’s file and includes any amounts that would have been payable to the Veteran as a lump sum for withheld benefits due to hospitalization or other circumstances.

Are Retroactive Increases Allowed for Accrued Lump Sum Benefits?

No, retroactive increases are not allowed. Benefits are payable only for periods covered by an award in effect at the date of death. The amount payable is limited to what was withheld based on awards in the Veteran’s claims folder.

What Happens If There Is No Surviving Spouse, Child, or Dependent Parent?

If there are no eligible family members (surviving spouse, children, or dependent parents), accrued benefits may be paid to the person who paid for the veteran’s last illness or burial expenses. This person must submit a claim for reimbursement with proof of payment.

Can I Appeal a Denial of Accrued Benefits?

Yes, if your claim for accrued benefits is denied, you have the right to appeal the decision. You must submit a Notice of Disagreement (NOD) to the VA within one year from the date of the denial letter.

What Happens If Multiple Claims for Accrued Benefits Are Filed?

If multiple eligible claimants file for accrued benefits, the VA will determine who has the highest priority according to the legal order of preference. Benefits are then paid out to the eligible claimant with the highest priority.

Are There Any Benefits That Do Not Qualify as Accrued Benefits?

Yes, insurance benefits, servicemen’s indemnity, and special allowances under 38 U.S.C. 1312(a) do not qualify as accrued benefits and cannot be paid out as such.

How Long Does the VA Take to Process an Accrued Benefits Claim?

The processing time for accrued benefits claims can vary, but typically, it may take several months to receive a decision. The VA will review the veteran’s file and any evidence submitted to make a determination.

What If I Need Help Filing an Accrued Benefits Claim?

You can get assistance from a VA-accredited representative, attorney, or claims agent. They can help you understand the process, gather necessary documents, and submit the claim on your behalf.

Can Accrued Benefits Be Paid to an Estate?

Yes, if no eligible person is living, accrued benefits may be payable to the deceased beneficiary’s estate, but only for reimbursement of last illness or burial expenses. The executor or administrator of the estate must file the claim.

Are Accrued Benefits Taxable?

Accrued benefits are generally not considered taxable income. However, specific circumstances or changes in tax laws could alter this, so it’s advisable to consult a tax professional.

Can a Surviving Spouse Waive Their Right to Accrued Benefits?

Yes, a surviving spouse can choose to waive their right to accrued benefits. However, this does not allow another person with equal or lower preference to claim those benefits.

What Is the Difference Between Accrued Benefits and Survivor Benefits?

Accrued benefits are payments due to a veteran at the time of their death. Survivor benefits, such as Dependency and Indemnity Compensation (DIC), are ongoing monthly payments made to surviving spouses, children, or parents based on the veteran’s service-connected death or disability.

Can I Reopen an Accrued Benefits Claim?

Generally, once a claim for accrued benefits is denied and not appealed within the allowable timeframe, it cannot be reopened. However, new and material evidence related to the claim could potentially allow for reopening.

What If the Veteran’s Cause of Death Was Not Service-Connected?

If the veteran’s death was not due to a service-connected condition, the eligible survivors may still receive accrued benefits if the veteran had unpaid benefits due to a non-service-connected condition.

How Are Claims for Accrued Benefits Different from Claims for Substitution?

Accrued benefits claims are based on the veteran’s pending claims or decisions at the time of death, while substitution allows an eligible person to take over the veteran’s pending claim and submit new evidence.

Can an Executor of an Estate File for Accrued Benefits?

Yes, an executor or administrator of the deceased veteran’s estate can file for accrued benefits to cover the veteran’s last illness and burial expenses if no other eligible beneficiaries are available.

How Are Benefits Divided Among Dependent Children?

If there are multiple dependent children eligible for accrued benefits, the benefits are divided equally among them. This includes children between 18 and 23 attending school and those deemed helpless.

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