M21-1 Manual / Part XII, Subpart i, Chapter 3, Section C
Awarding Dependency and Indemnity Compensation (DIC) to Children Based on the Determination of Surviving Spouse Entitlement
M21-1, Part XII, Subpart i, Chapter 3, Section C
Overview
In This Section | This section contains the following topics: | Topic | Topic Name |
|---|
| 1 | Paying DIC to a Child(ren) When a Surviving Spouse DIC Claim Is Pending | | 2 | Potential Surviving Spouse DIC Entitlement and a Child(ren)'s DIC Award |
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1. Paying DIC to a Child(ren) When a Surviving Spouse DIC Claim Is Pending
Introduction | | This topic contains general information on paying DIC to a child(ren) when a surviving spouse claim is pending, including- awarding DIC benefits to a child(ren) before a determination of surviving spouse entitlement
- benefits when all children are in the custody of a potential surviving spouse
- benefits for a child(ren) not in the custody of a potential surviving spouse, and
- example of apportioning an award when not all children are in a potential surviving spouse’s custody.
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Change Date | | February 9, 2026 |
XII.i.3.C.1.a. Awarding DIC Benefits to a Child(ren) Before a Determination of Surviving Spouse Entitlement | | If determination of a potential surviving spouse’s Dependency and Indemnity Compensation (DIC) entitlement will be unduly delayed in a claim involving children, award DIC benefits to the child or children if and when entitlement can be established. Reference: For more information on rates, see the current DIC rate charts. |
XII.i.3.C.1.b. Benefits When All Children Are in the Custody of a Potential Surviving Spouse | | If all children are in the custody of a potential surviving spouse- award the benefits to the child under the appropriate payee code with the surviving spouse claimant as the custodian on the child(ren) award(s) under 38 U.S.C. 5502, and
- make the payment at the children-only rates.
Reference: For more information on the recognition of a custodian under 38 U.S.C. 5502, see M21-1, Part X, Subpart ii, 6.E.4. |
XII.i.3.C.1.c. Benefits for a Child(ren) Not in Custody of a Potential Surviving Spouse | | Do not delay payment to one or more of the children, not in the custody of the potential surviving spouse before a final DIC determination is made as to the potential surviving spouse’s entitlement.If benefits will be awarded to child(ren) ensure that the appropriate payee code and custodian are selected from the child(ren)’s application. Then take the following actions:- prepare VA Form 21-592, Request for Appointment of a Fiduciary,Custodian or Guardian and note on the form
- any awards to children will be made pending a DIC determination of the potential surviving spouse’s entitlement, and
- benefits awarded may be subject to adjustment, and
- determine the rate payable from the DIC rate chart for children as if the potential surviving spouse were entitled.
Reference: For more information on processing the award action, see the Veterans Benefits Management System Awards (VBMS) User Guide. |
XII.i.3.C.1.d. Example: Apportioning an Award When Not All Children Are in a Potential Surviving Spouse’s Custody | | Situation: - The Veteran died on April 15, 2021.
- A potential surviving spouse’s entitlement is pending.
- One child is in the custody of the potential surviving spouse.
- One child is not in the custody of the potential surviving spouse.
Result: Pay each child separately under the appropriate payee code. |
2. Potential Surviving Spouse DIC Entitlement and a Child(ren)’s DIC Award
Introduction | | This topic contains information on a potential surviving spouse’s DIC entitlement and a child(ren)’s DIC award, including- actions to take when
- a potential surviving spouse fails to file a claim for DIC, and
- a surviving spouse claim is denied
- adjusting the child(ren)’s award when a surviving spouse claim is denied, and
- actions to take when a surviving spouse establishes entitlement to DIC.
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XII.i.3.C.2.a. Actions to Take When a Potential Surviving Spouse Fails to File a Claim for DIC | | If a potential surviving spouse fails to file a claim for DIC and at least one child(ren) is entitled to DIC, follow the if/then table below.| If ... | Then ... | | at least one year has passed since the Veteran’s death | pay the child(ren)-only rates. | | less than one year has passed since the Veteran’s death | - establish a future diary code under reason code 30 for receipt of a claim that could potentially establish retro-active entitlement
- invite the potential surviving spouse to file a claim for DIC, and
- annotate the award that a diary code has been established and the reason for it.
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Reference: For more information on awards where not all dependents apply, see 38 CFR 3.107. |
XII.i.3.C.2.b. Actions to Take When a Surviving Spouse Claim Is Denied | | If a surviving spouse claim is denied- prepare a denial and include notice of
- reasons the claim could not be granted
- action taken on any child(ren)’s claim in the custody of the denied claimant, and
- awards to, or for, any child(ren) in the custody of the denied claimant, and
- take appropriate action on the child(ren)’s awards as described in M21-1, Part XII, Subpart i, 3.C.2.c.
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XII.i.3.C.2.c. Adjusting a Child(ren)’s Awards When a Surviving Spouse Claim Is Denied | | When a potential surviving spouse’s claim is denied, pay any child(ren) the applicable child-only rate. Reference: For more information on rates, see the current DIC rate charts. |
XII.i.3.C.2.d. Actions to Take When a Surviving Spouse Establishes Entitlement to DIC | | Use the table below to determine the action to take if- an award has been made for a child(ren), and
- the surviving spouse’s entitlement is subsequently established.
| If … | Then … |
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| a child(ren) is/are in the surviving spouse’s custody | - terminate the child(ren)’s award as of the date in the LAST PAID DATE field as shown in VBMS and/or Share
- pay the available balance under a payee 10 award, and
- adjust the payee 10 award the date shown in the LAST PAID DATE in VBMS and/or Share to remove the withholding.
| | no child(ren) is/are in the custody of the surviving spouse | - review the child(ren)’s award(s) to ensure they are receiving proper payment, and
- prepare a payee 10 award to pay the surviving spouse.
| | there is a child(ren) both in and out of custody of the surviving spouse | - review the out of custody child(ren)’s award(s) to ensure they are receiving proper payment
- terminate the award for the child(ren) in custody as of the date in the LAST PAID DATE field shown in VBMS and/or Share, and
- prepare a payee 10 award from the date of entitlement, with appropriate withholding for prior payments adjusted as of the date in the LAST PAID DATE field shown in VBMS and/or Share.
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Reference: For more information on VBMS, see the VBMS User Guide. |
Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part XII, Subpart i, Chapter 3, Section C (U.S. government work, reproduced for reference). Browse all sections →