M21-1 Manual  /  Part XI, Subpart ii, Chapter 3, Section A

Entitlement to Accrued Benefits Under 38 U.S.C. 5121

M21-1, Part XI, Subpart ii, Chapter 3, Section A

Overview

In This Section

This section contains the following topics:
TopicTopic Name
1General Information on Eligibility Under 38 U.S.C. 5121
2Pending Claims
3Elections and Automatic Increases Pending on the Date of Death
4Evidence in File
5Entitlement on the Basis of Relationship
6Payment of Accrued Benefits as Reimbursement


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

Introduction

This topic contains general information on eligibility to accrued benefits, including
  • definition of accrued benefits, and
  • basic eligibility for accrued benefits.

Change Date

August 19, 2025

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’ 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.Exceptions:
  • 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.
  • A claimant seeking accrued benefits or substitution may only continue a claim for Dependency and Indemnity Compensation (DIC) reevaluation under Section 204 of Public Law (PL) 117-168, Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics (PACT) Act of 2022 if an election for reevaluation of a previously denied DIC claim was pending at the time of the original claimant’s death.
References: For more information on

2. Pending Claims

Introduction

This topic contains general information on pending claims, including the definition of
  • claim pending at the date of death, and
  • legacy appeals pending on the date of death.

Change Date

August 19, 2025

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
  • request for reevaluation of DIC under the PACT Act
  • 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 legacyappeal 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
  • substantive appeals, see M21-5, Chapter 7, Section E
  • administrative appeals, see M21-5, Chapter 7, Section A.1.o
  • continuing appellate action after the death of the appellant, see De Landicho and Oseo v. Brown, 7 Vet.App. 42 (1994), and
  • entitlement to accrued benefits, see 38 U.S.C. 5121.

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
  • elections not acted upon at time of death
  • election of disability compensation in lieu of retired pay, and
  • automatic increases not affected prior to death.

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
  • general policy information, and
  • definition of evidence in
    • the file at the date of death, and
    • VA’s possession.

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
  • entitlement to accrued benefits
  • entitlement upon the death of a
    • Veteran, and
    • surviving spouse or child
  • rights of persons having lower preference
  • payment to the estate of the preferred claimant, and
  • evidence requirements.

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 spousefull 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 childrenequal 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 parentfull 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 spouseVeteran’s children.Note: Accrued Dependents' Educational Assistance (DEA) of a spouse is payable only as reimbursement under 38 CFR 3.1000(f).
childsurviving 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 DIC, 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.A.6.c.

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).

6. Payment of Accrued Benefits as Reimbursement

Introduction

This topic contains information on the payment of accrued benefits as reimbursement, including
  • accrued benefits used to reimburse
  • definition of bore the expenses
  • claims for reimbursement
  • example of a claim for reimbursement
  • claims by a creditor
  • cases in which
    • the estate is the claimant
    • the estate closed prior to the approval of an award, and
    • no administrator or executor is appointed, and
  • claims not filed during lifetime.

Change Date

January 12, 2026

XI.ii.3.A.6.a. Accrued Benefits Used to Reimburse

Accrued benefits may be used to reimburse a person or person(s) who bore the expenses of the last illness and/or burial of a beneficiary, but only if there is no one in a permitted class entitled to the accrued benefit on the basis of relationship.Notes:
  • The amount of accrued payable as reimbursement is restricted to the amount of last illness or burial expenses paid up to the amount of accrued that is available.
  • The term “bore the expenses” is defined in M21-1, Part XI, Subpart ii, 3.A.6.b.
References: For more information on entitlement to accrued benefits

XI.ii.3.A.6.b. Definition: Bore the Expense

An individual who bore the expense is someone who was responsible for the financial burden of a beneficiary’s last illness or final expenses. This includes whatever circumstances created that financial burden.The phrase bore the expense can mean “paid the expense” but is not limited to “paid.” Bore can also mean “to accept”, “to assume”, “to loan”, or “to support”.Note: For accrued/substitution claims, an individual can claim they bore the expense of a claimant’s last illness or final expenses, even if the deceased beneficiary claimed those same funds as unreimbursed expenses to reduce their income for VA purposes on an income-based benefit program (i.e., Pension or Survivors’ Pension).References: For more information on bore the expense, see Helmick v. McDonough, 34 Vet.App. 141 (2021).

XI.ii.3.A.6.c. Claims for Reimbursement

Provide VA Form 21P-601, Application for Accrued Amounts Due a Deceased Beneficiary, to the person who
  • bore the expenses of the last illness and/or burial of the deceased beneficiary, or
  • is held responsible by the unpaid creditors for the payment of the deceased beneficiary’s bills for the last illness and/or burial.
References: For more information on

XI.ii.3.A.6.d. Example: Claim for Reimbursement

Situation: The Veteran’s adult descendant submitted VA Form 21P-601 on December 1, 2023, and requested reimbursement based on an indication that they paid for the Veteran’s last illness and burial expenses. There were no receipts provided with this claim. The Veteran did have a claim pending at the time of death, which occurred on November 12, 2023. The adult descendant is considered an eligible claimant for accrued benefits in this situation. A review of the Veteran's record shows a dependency allowance was paid for this accrued benefits claimant until their 23rd birthday, ceasing the allowance on October 9, 2020. There is no evidence of record indicating that the claimant is incapable of self-support and there is no record of any other eligible claimants. Result: While the VA established the relationship between the accrued benefit claimant and the Veteran prior to the Veteran’s death, additional evidence is required because the claimant is over 23 years of age. In order for VA to grant accrued benefits for reimbursement purposes, the claimant must submit verification showing they bore the expenses of the Veteran’s last illness and/or burial.VA must send a Section 5103 notice to request verification showing the claimant bore the claimed reimbursable expenses as outlined in M21-1, Part XI, Subpart ii, 3.C.2.a.

XI.ii.3.A.6.e.
Claims by a Creditor

A creditor may be paid accrued benefits as reimbursement, but must support the claim by a waiver of claims from
  • all other creditors, and
  • any person who
    • is shown to have an interest in the accrued benefits because of service rendered to the deceased beneficiary related to last illness or burial, and
    • holds the creditor responsible for the payment of their claim.

XI.ii.3.A.6.f. Cases in Which the Estate Is the Claimant

If one of the co-executors or co-administrators of an estate files a claim, any award to the estate must be payable to all of the co-executors or co-administrators as appointed by the court.A formal application on VA Form 21P-601 must be filed, supported by a certified copy of the letters of administration or letters testamentary bearing the signature and seal of the appointing court.Note: Consider the claimant the sole executor unless there is evidence that there are other executors.Reference: For more information on claims involving political subdivisions, see M21-1, Part XI, Subpart ii, 3.E.13.

XI.ii.3.A.6.g. Cases in Which the Estate Closed Prior to the Approval of an Award

Prior to the approval of an award, if VA is placed on notice that the estate is closed
  • obtain a certified copy of the discharge of the fiduciary, including the court order of distribution, and
  • authorize payment to the distributees shown.

XI.ii.3.A.6.h.
Cases in Which No Administrator or Executor Is Appointed

When there is no administrator or executor appointed for the estate of the deceased Veteran or beneficiary or of a claimant who died prior to receiving payment, a claim may be filed on VA Form 21P-601 by a person who assumed the informal distribution of the Veteran’s or beneficiary’s estate using assets of the estate for payment of the expenses. In such cases, follow the guidelines listed below.Note: When the personal funds of an individual are used to pay the expenses of the last illness or burial, that person is the proper claimant entitled to the accrued payable as reimbursement. That person is also the proper claimant if they paid the expenses of the last illness and burial of a claimant who died prior to receiving payment.

XI.ii.3.A.6.i. Claims Not Filed During Lifetime

When an individual whose personal funds are used to pay the expenses of the last illness and burial dies before filing a claim (formal or informal) for the accrued benefit, no payment is made as reimbursement.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part XI, Subpart ii, Chapter 3, Section A (U.S. government work, reproduced for reference). Browse all sections →