M21-1 Manual / Part VII, Subpart i, Chapter 4, Section B

Establishing Parental Dependency

M21-1, Part VII, Subpart i, Chapter 4, Section B

Overview

In This Section

This section contains the following topics:

Topic	Topic Name
1	General Information on Establishing Parental Dependency
2	Conclusive Dependency of a Parent–Domestic Cases Only
3	Factual Dependency–Foreign Cases and Domestic Cases
4	Administrative Decisions–Dependency Determinations
5	Requests for Proof of Continued Dependency in Connection With Award Action
6	Follow-Ups to Determine Whether Dependency Has Ceased
7	Changes in Marital and Dependency Status of Parents in Disability and Death Compensation Cases
8	Death of One of Two Dependent Parents
9	Reestablishment of Parental Dependency

1. General Information on Establishing Parental Dependency

Introduction

This topic contains information on handling issues of parental dependency, including

definition of members of the family
consideration of parental relationship and dependency
effective date of parental dependency
how marriage affects parental dependency
initial development to determine parental dependency
action to take if additional information is required
obtaining evidence pertaining to a parent’s marriage, and
establishing dependency in domestic and foreign cases.

Change Date

December 16, 2020

VII.i.4.B.1.a. Definition: Members of the Family

The term members of the family, for purposes of determining conclusive dependency in domestic cases, and for determining factual dependency in foreign and domestic cases, includes relatives
under age 21 who are supported by a parent under legal or moral obligation, and
over age 21 who are dependent on the parent because of physical or mental incapacity.

VII.i.4.B.1.b. Consideration of Parental Relationship and Dependency

The issue of whether or not a Veteran’s parent is dependent is distinct from the issue of whether or not the parental relationship may be established.Disability and Death Compensation: Both the parental relationship and dependency of the parent must be established in order for the Department of Veterans Affairs (VA) to pay additional disability compensation for a parent or pay death compensation to a parent.Parents’ Dependency and Indemnity Compensation (DIC): Dependency is not an issue in Parents’ DIC claims, although entitlement to Parents’ DIC, as well as the rate that is payable, are both determined by the parents’ income for VA purposes.References: For more information on
relationship versus dependency, see M21-1, Part VII, Subpart i, 4.A.1.c, and
Parents’ DIC, see M21-1, Part IX, Subpart i, 1.A.4.

VII.i.4.B.1.c. Effective Date of Parental Dependency

It is not material whether the parent’s dependency arose before or after the Veteran’s death. The relevant question is whether or not the parent is dependent on the date of entitlement to benefits.

VII.i.4.B.1.d. How Marriage Affects Parental Dependency

A parent’s marriage has no bearing on the parent’s dependency, except to the extent that it changes the

parent’s financial situation, and
income limit for conclusive dependency.

References: For more information on
conclusive dependency, see M21-1, Part VII, Subpart i, 4.B.2, and
obtaining evidence pertaining to the marriage of a parent, see M21-1, Part VII, Subpart i, 4.B.1.g.

VII.i.4.B.1.e. Initial Development to Determine Parental Dependency

If taking initial development action to determine the dependency of a parent, send the claimant VA Form 21P-509, Statement of Dependency of Parent(s).Exception: Do not send VA Form 21P-509 to a Veteran if the form used to claim additional disability compensation for a parent(s) is a September 2018 or later version of VA Form 21-686c, Application Request to Add and/or Remove Dependents. Such versions of the form specifically instruct Veterans to complete and submit VA Form 21P-509 with their claim. VA Form 21P-509
is also used to determine continued dependency if evidence is received that a dependent parent has married, and
may be mailed to the claimant by using the appropriate development letter.
Reference: For more information on a Veteran’s failure to submit a form that a September 2018 or later version of VA Form 21-686c specifically instructs the Veteran to provide with the claim, see M21-1, Part VII, Subpart i, 1.A.4.e.

VII.i.4.B.1.f. Action to Take if Additional Information Is Required

If additional information is required to determine the dependency of a parent, develop by:

calling the claimant and documenting information obtained during the call on VA Form 27-0820, Report of General Information, or
sending a development letter to the claimant if telephone development is unsuccessful.

Exception: Do not take the actions described in this block if
a Veteran submits a claim for additional disability compensation for a parent using a September 2018 or later version of VA Form 21-686c, and
the “additional information” referenced in this block is information the VA Form 21-686c specifically asks the Veteran to provide.
Reference: For more information on September 2018 or later versions of VA Form 21-686c that are incomplete, see M21-1, Part VII, Subpart i, 1.A.4.e.

VII.i.4.B.1.g. Obtaining Evidence Pertaining to a Parent’s Marriage

If evidence is received showing a dependent parent has married, advise the beneficiary that VA Form 21P-509 must be completed to establish that continued dependency exists.If the beneficiary fails to respond to VA Form 21P-509, furnish a notice of proposed adverse action under 38 CFR 3.652.Reference: For more information on conclusive dependency, see M21-1, Part VII, Subpart i, 4.B.2.

VII.i.4.B.1.h. Establishing Dependency in Domestic and Foreign Cases

The table below shows when dependency may be established in domestic and foreign cases.

If the case is a …	Then dependency may be established …
domestic case	when conclusive dependency is established, or on a factual basis, if conclusive dependency cannot be established.
foreign case	on a factual basis only.Note: Conclusive dependency does not apply in foreign cases.

References: For more information on

conclusive dependency, see M21-1, Part VII, Subpart i, 4.B.2, and
factual dependency, see M21-1, Part VII, Subpart i, 4.B.3.

2. Conclusive Dependency of a Parent – Domestic Cases Only

Introduction

This topic contains information on conclusive dependency in domestic cases, including

income limits for parental dependency
effect of additional family members on income limits
income considerations for additional family members, and
effect of net worth on parental dependency.

Change Date

October 11, 2010

VII.i.4.B.2.a. Income Limits for Parental Dependency

Conclusive dependency of a parent, other than a parent who resides in a foreign country, exists when the monthly income of the parent(s) does notexceed
$400 for a mother or father living alone, or
$660 for a
mother and father, or
remarried parent and spouse living together.
Reference: For more information on the income limits for a parent and a parent’s spouse, see 38 CFR 3.250.

VII.i.4.B.2.b. Effect of Additional Family Members on Income Limits

Add $185 to the conclusive dependency income limit for each additional member of the family who the parent is under a legal or moral obligation to support.

VII.i.4.B.2.c. Income Considerations for Additional Family Members

If $185 is added to the conclusive dependency income limit for an additional member of the family,

consider any income of the family member that is available to the parent for support of the family member, and
do not consider the family member’s net worth unless it is actually available to the parent.

VII.i.4.B.2.d. Effect of Net Worth on Parental Dependency

If family income is within the income limits specified under 38 CFR 3.250, net worth is not a factor.If, however, the claimant reports substantial net worth, determine whether

the assets are the type that should be generating interest or dividends, and
all interest and dividends were reported.

3. Factual Dependency–Foreign Cases and Domestic Cases

Introduction

This topic contains information on factual dependency in foreign and domestic cases, including

standard to determine factual dependency
net worth considerations, and
dependency of one of two parents not established.

Change Date

October 11, 2010

VII.i.4.B.3.a. Standard to Determine Factual Dependency

In all foreign cases and in those domestic cases where income exceeds the limits for conclusive dependency under 38 CFR 3.250, use the following standard to determine whether factual dependency exists: Does the parent have sufficient income and/or net worth to provide reasonable maintenance for self and for members of the family?If the answer is no, dependency exists.Note: There are no hard and fast rules for determining whether factual dependency exists. This is a discretionary determination that is made by development and/or authorization activity.

VII.i.4.B.3.b. Net Worth Considerations

If conclusive dependency cannot be established, net worth must be considered. Evaluate a parent’s net worth separately even if the parents are living together.The table below describes considerations with regard to
net worth and
establishing factual dependency.
If … Then …
it is reasonable to expect the parent’s net worth may be consumed for the parent’s maintenance deny factual dependency.
one parent is not considered dependent because of excessive net worth, and
the assets are
one parent’s separate property, and
not joint or community property
it is possible for one parent to be found dependent and the other not dependent, even though they live together in the same household.Note: Attribute half of all joint or community property to each parent.Reference: For more information, see M21-1, Part VII, Subpart i, 4.B.3.c.
a parent marries someone who is not the Veteran’s other parent, or
two parents live together but only one files for death compensation
only consider
the claimant’s individual net worth, and
half of any joint or community property.
Reference: For more information, see 38 CFR 3.263.

VII.i.4.B.3.c. Dependency of One of Two Parents Not Established

If one parent’s claim is denied because of non-dependency, but the other parent’s claim is awarded, the successful claimant is entitled to the single parent rate.

4. Administrative Decisions–Dependency Determinations

Change Date

August 14, 2006

VII.i.4.B.4.a. Administrative Decisions

Use the table below to determine the appropriate actions to take when

factual dependency exists, or
dependency cannot be established.

If …	Then …
factual, as opposed to conclusive, dependency exists, and a parent’s estate is $80,000 or more	complete VA Form 21-5427, Corpus of Estate Determination.
a decision is made that factual dependency cannot be established	prepare a two-signature administrative decision using the format in M21-1, Part X, Subpart v, 1.C.2.Note: Prepare the decision on VA Form 21-5427 when the basis for denial or discontinuation is excessive net worth.

5. Requests for Proof of Continued Dependency in Connection With Award Action

Introduction

This topic contains information about proof of dependency, including

when to require proof of continued dependency, and
obtaining proof of continued dependency in death and disability cases.

Change Date

December 16, 2020

VII.i.4.B.5.a. When to Require Proof of Continued Dependency

Proof of continued dependency is required for award action in disability and death compensation cases when the information on VA Form 21P-509 is over a year old. Example: Situations may arise in which a determination of entitlement has been delayed pending receipt of
service records, or
other evidence.

VII.i.4.B.5.b. Obtaining Proof of Continued Dependency in Death and Disability Cases

Follow the steps in the table below to request proof of continued dependency in death and disability cases when taking award action.

Step	Action
1	Review the application and the claims folder.
2	Is there any evidence that indicates the dependency status has changed? If yes, go to the next step. If no, go to Step 5.
3	Send a letter asking the claimant to complete VA Form 21P-509, and return the form within 30 days.
4	Did the claimant return VA Form 21P-509within 30 days? If yes, take award action based on the evidence of record and information contained on VA Form 21P-509, and go to Step 24. If no, and the claim is for death compensation, deny the claim, and go to Step 24, or disability compensation, process the award but deny the claim for additional benefits for the parent, and go to Step 24.
5	Is the information on VA Form 21P-509 over a year old? If yes, go to Step 8. If no, go to the next step.
6	Is the claimant eligible for benefits as or for a parent during a period of time that precedes the 12-month period of time for which the claimant provided income and expenses on the VA Form 21P-509of record? If yes, award benefits effective the first of the month following the earliest month for which income and expenses were provided on the form, leave the end product (EP) associated with the award pending, and ask the beneficiary (in the corresponding decision notice) to complete and return within 30 days another VA Form 21P-509 for each 12-month period that precedes the 12-month period the VA Form 21P-509 of record covers. If no, process the award, and go to Step 24.
7	Did the beneficiary return the VA Form(s) 21P-509 within 30 days? If yes, award benefits effective the first of the month following the earliest date on which eligibility exists *and* dependency is demonstrated, and go to Step 24. If no, clear the pending EP, and take no further action.
8	If the claim is for death compensation, go to the next step, or disability compensation, go to Step 10.
9	Process the award. Send the parent VA Form 21P-509 with the decision notice. Advise the parent that failure to return the completed form within 30 days will result in discontinuation of their benefits. Go to Step 11.
10	Process the award. Send the Veteran VA Form 21P-509 with the decision notice. Advise the Veteran in the decision notice that failure to return the completed form within 30 days will result in discontinuation of the additional benefits for the parent.
11	Establish a diary under diary code 22, Verify Income or Dependency, that will expire in 30 days.
12	Did the beneficiary return VA Form 21P-509within 30 days? If yes, clear the diary established in the preceding step (if it is still pending), and go to the next step. If no, go to Step 16.
13	Does the VA Form 21P-509contain information that necessitates an award adjustment? If yes, establish EP 130, using the date VA received the form as the date of claim, and go to the next step. If no, clear an EP 692, and disregard the remaining steps in this table.
14	Will the award adjustment create an overpayment? If yes, add Potential Under/Overpayment as a special issue under the EP 130, and go to the next step. If no, make the award adjustment under the pending EP 130, and go to Step 24.
15	Make the award adjustment under the pending EP 130 and go to Step 24.
16	Clear the 810 work item that was automatically generated when the diary established in Step 11 expired. Establish EP 130. Use the date of the 810 work item as the date of claim. Add Potential Under/Overpayment as a special issue. *Reference*: For more information on 800 series work items, see M21-4, Appendix B.
17	Under the pending EP 130, suspend payments to the parent or discontinue the payment of additional benefits for the parent effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in the Veterans Benefits Management System (VBMS).
18	Establish EP 600 and add Potential Under/Overpayment as a special issue.
19	Send a notice of proposed adverse action that proposes to discontinue benefits VA paid to or for the parent effective the same date VA first paid them contains the elements in M21-1, Part X, Subpart ii, 3.A.2, and instructs the beneficiary to return VA Form 21P-509within 60 days.
20	Did the beneficiary return VA Form 21P-509 within 65 days? If yes, go to the next step. If no, take the action proposed in the notice of proposed adverse action, and go to Step 24.
21	Is an award adjustment necessary based on information contained on VA Form 21P-509? If yes, go to the next step. If no, go to Step 23.
22	Adjust the award under the pending EP 600 and go to Step 24.
23	Clear the EP 600.
24	Prepare a decision notice and send it to the claimant/beneficiary.Important: When notifying a claimant of the denial referenced in Step 4 of this table, instruct the claimant in the decision notice to complete VA Form 20-0995, Decision Review Request: Supplemental Claim, and return it with the VA Form 21P-509 referenced in Step 3. *Reference*: For more information about preparing decision notices, see M21-1, Part VI, Subpart i, 1.B.1.

6. Follow-Ups to Determine Whether Dependency Has Ceased

Introduction

This topic contains information about conducting follow-ups to determine whether dependency has ceased, including

follow-ups on dependency status
corporate record control of dependency issues
duration of control for dependency follow-up, and
parent responsible for minor children.

Change Date

July 11, 2015

VII.i.4.B.6.a. Follow-Ups on Dependency Status

Under certain circumstances, an award may be made for a parent whose present economic status warrants a determination of dependency, but whose financial situation may reasonably be expected to improve in the future.Examples: This situation may exist in cases in which
the parent is comparatively young and has been unemployed because of poor health, or
the award is predicated on the parent’s financial responsibility with regard to minor children.

VII.i.4.B.6.b. Corporate Record Control of Dependency Issues

If an award is made and there is a reasonable expectation that the parent’s financial situation may improve, establish a diary under reason code 22, Verify Income or Dependency, for a follow-up at an appropriate date to determine whether dependency has ceased.Reference: For more information for establishing a diary in Share, see the Share User Guide.

VII.i.4.B.6.c. Duration of Control for Dependency Follow-Up

If it appears probable that the parent’s financial situation may improve by reason of recovery of employability or similar circumstances, where a future date cannot be definitely estimated, establish the control for one to two years.

VII.i.4.B.6.d. Parent Responsible for Minor Children

If the parent’s dependency is based on financial responsibility for a minor child or children, establish

a diary for release of the follow-up letter approximately 30 days prior to the date when the child (oldest child if more than one child is involved) will attain age 18, then
a 30-day suspense period for receipt of the required evidence/information.

7. Changes in Marital and Dependency Status of Parents in Disability and Death Compensation Cases

Introduction

This topic contains information about changes in the marital and dependency status of parents in disability and death compensation cases, including

when to reevaluate dependency
handling cessation of dependency
reducing or discontinuing awards, and
award adjustment when the dependency of one parent, on a two-parent award, ceases.

Change Date

December 16, 2020

VII.i.4.B.7.a. When to Reevaluate Dependency

Reevaluation of a parent’s dependency is required when there is any

change in a parent’s marital status, or
significant change in a parent’s income or net worth.

VII.i.4.B.7.b. Handling Cessation of Dependency

If it is determined that a parent is no longer dependent because of a change in economic status, provide a notice of proposed adverse action.Exceptions: There is no need to prepare and issue a notice of proposed adverse action if a
Veteran in receipt of additional disability compensation for a parent notifies VA the parent is no longer financially dependent on the Veteran, or
parent in receipt of death compensation reports a change in economic status that renders the parent ineligible for death compensation.

VII.i.4.B.7.c. Reducing or Discontinuing Awards

Reduce a disability compensation award or discontinue a death compensation award effective the first day of the calendar year following the calendar year during which dependency ceased.References: For more information on
reducing a disability compensation award or discontinuing death compensation, see 38 CFR 3.660(a)(1) and (2)
how a change in marital status affects payment of Parents’ DIC, see M21-1, Part IX, Subpart iii, 1.D.6, and
reducing or discontinuing an award, see the VBMS Awards User Guide.

VII.i.4.B.7.d. Award Adjustment When the Dependency of One Parent, on a Two-Parent Award, Ceases

Follow the steps in the table below if it is determined that one of two parents receiving death compensation is no longer dependent, but the other parent continues to be dependent.

Step

Action

Provide a notice of proposed adverse action to the parent who is no longer dependent and instruct the parent to reply within 60 days.

Was evidence received within 65 days showing the parent in question remains dependent?

If yes, continue the award and notify the parent of the decision.
If no,
- discontinue the award of the parent in question
- increase the rate for the remaining parent to that payable under dependency code 50 or 60 (whichever is appropriate), effective the date of discontinuation of the other parent’s award,
- and notify each parent of the actions taken.

Reference: For more information on award adjustment when the dependency of one parent, on a two-parent award, ceases, see 38 CFR 3.651.

8. Death of One of Two Dependent Parents

Introduction

This topic contains information on the death of one of two dependent parents, including

action taken on the death of one of two parents
automatic rate adjustment for remaining parent, and
handling VA’s failure to make a rate adjustment due to an administrative error.

Change Date

October 11, 2010

VII.i.4.B.8.a. Action Taken on the Death of One of Two Parents

The table below describes the action taken in cases where one of two dependent parents dies.

Type of Benefit	Action	Additional Information
death compensation	Discontinue the deceased parent’s award effective the first day of the month of death. Increase the remaining parent’s benefits to the rate payable under dependency code 50 or 60 (whichever is appropriate),effective the date of discontinuation of the other parent’s award.	For more information on how the death of one of two dependent parents affects death compensation benefits, see 38 CFR 3.500(g)(1), and 38 CFR 3.651.
disability compensation	Reduce the Veteran’s award to the rate for a Veteran with one dependent parent effective the first of the month after the month of the parent’s death.Note: If the parent died before October 1, 1982, the reduction is effective the first of the year after the year of the parent’s death.	For more information on how the death of one of two dependent parents affects disability compensation benefits, see 38 CFR 3.500(g)(2).
parents’ DIC	---	For more information on how the death of one of two dependent parents affects Parents’ DIC, see M21-1, Part IX, Subpart iii, 1.D.6.

VII.i.4.B.8.b. Automatic Rate Adjustment for Remaining Parent

When one parent is removed from a two-parent death compensation award because of death or cessation of dependency, VA automatically increases the rate payable to the remaining parent. A specific claim for increased benefits from the remaining parent is not required.Reference: For more information on increasing the death compensation rate payable to a remaining parent, see 38 CFR 3.651(a).

VII.i.4.B.8.c. Handling VA’s Failure to Make a Rate Adjustment Due to an Administrative Error

If VA fails to increase the rate payable to the surviving (or remaining) parent due to an administrative error, there is no time limit for making the adjustment.Example:
1981: A father in receipt of death compensation dies. The father’s award is stopped in a timely manner, but VA fails to increase the mother’s award (who is also in receipt of death compensation) to the single parent rate.
1990: The oversight is discovered. The mother is entitled to the single parent rate effective the first of the month of the father’s death.

9. Reestablishment of Parental Dependency

Introduction

This topic contains information about reestablishment of parental dependency, including

when to resume payments for a dependent parent
example of dependency reestablished and payments resumed
award adjustment for adding a parent back onto a two-parent award, and
example of dependency reestablished and award adjusted.

Change Date

March 19, 2018

VII.i.4.B.9.a. When to Resume Payments for a Dependent Parent

If payments of death compensation are discontinued or additional disability compensation payments are reduced because a parent was determined not to be dependent, resume payments effective the date dependency again arises. Important: Satisfactory evidence must be received within one year from the date of notice of the discontinuation or reduction. Otherwise, the effective date is determined by the date of claim subject to 38 CFR 3.31.

VII.i.4.B.9.b. Example: Dependency Reestablished and Payments Resumed

Scenario:

On October 15, 2001, VA receives notification from a parent in receipt of death compensation that the parent
- accepted a job that pays $60,000 per year, and
- received the first paycheck on September 29, 2001.
- On October 20, 2001, VA
  - determines the parent is no longer entitled to death compensation (because dependency has ceased), and
  - discontinues the parent’s benefits effective January 1, 2002, per 38 CFR 3.660(a)(2).
- On February 13, 2002, VA receives the parent’s application for death compensation which showed the parent quit the job and received the last paycheck on January 26, 2002.
Result: The effective date of entitlement to death compensation is January 27, 2002. The effective date of payment (after the application of 38 CFR 3.31) is February 1, 2002. Note: Had the parent received the last paycheck before December 31, 2001, benefits would have continued uninterrupted since VA could not discontinue benefits from an effective date earlier than January 1, 2002.

VII.i.4.B.9.c. Award Adjustment for Adding a Parent Back Onto a Two-Parent Award

If, because dependency has ceased, one parent is removed from a two-parent award of death compensation, and the parent whose award was stopped subsequently submits new evidence reestablishing entitlement, follow the instructions in the table below. Note: The instructions in the table below are for application whether the parents are living together or apart from one another.
Step Action
1 Furnish a notice of proposed adverse action to the parent who is still receiving death compensation (Parent A).
2 Establish a 65-day control.
3 At the end of the control period,
pay to the parent whose award was stopped (Parent B)
the full amount of benefits to which Parent B is entitled, effective the first of the month following the month for which VA last paid Parent A, and
the difference between the two-parent rate and the single-parent rate that was paid to Parent A for any period of entitlement that precedes the first of the month following the month for which VA last paid Parent A, and
reduce Parent A’s award to the two-parent rate effective the first of the month following the month for which VA last paid that parent.
Important: Do not create an overpayment in the other parent’s account.

VII.i.4.B.9.d. Example: Dependency Reestablished and Award Adjusted

Scenario:
On October 28, 2001, VA determines one of two parents (the mother) in receipt of death compensation is no longer dependent. Effective January 1, 2002, VA
discontinues the mother’s award, and
increases the father’s award to the single-parent rate of $75.00 per month.
On March 14, 2002, VA receives evidence that reestablishes the mother’s dependency from October 28, 2001.
On April 25, 2002, VA sends a notice of proposed adverse action to the father.
The father does not respond to the notice of proposed adverse action.
Action to process the pending EP 600 is taken on August 7, 2002. (August 1, 2002, represents the first day of the month following the month for which VA last paid death compensation to the father.)
Award Action/Adjustment:
Pay the mother $5.00 per month from January 1, 2002, to August 1, 2002.
Pay the mother the full monthly rate of $40.00 effective August 1, 2002.
Reduce the father’s monthly rate to $40.00 effective August 1, 2002.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part VII, Subpart i, Chapter 4, Section B (U.S. government work, reproduced for reference). Browse all sections →