### Section J. Establishing Parental Dependency

#### Overview

+------------+---------------------------------------------------------+
| #          | > This section contains the following topics:           |
| #### In th |                                                         |
| is Section |                                                         |
+------------+---------------------------------------------------------+

  ----------- ---------------------------------------------- ------------
  Topic       Topic Name                                     See Page

  53          General Information on Establishing Parental   5-J-2
              Dependency                                     

  54          Conclusive Dependency--Domestic Cases Only     5-J-6

  55          Factual Dependency--Foreign Cases and Domestic 5-J-8
              Cases                                          

  56          Administrative Decisions--Dependency           5-J-10
              Determinations                                 

  57          Requests for Proof of Continued Dependency in  5-J-11
              Connection With Award Action                   

  58          Follow-Ups to Determine Whether Dependency Has 5-J-13
              Ceased                                         

  59          Changes in Marital and Dependency Status of    5-J-14
              Parents in Disability and Death Compensation   
              Cases                                          

  60          Death of One of Two Dependent Parents          5-J-16

  61          Reestablishment of Parental Dependency         5-J-19
  ----------- ---------------------------------------------- ------------

#### 53. General Information on Establishing Parental Dependency

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on                    |
| troduction |                                                         |
|            | -   the definition of ***members of the family***       |
|            |                                                         |
|            | -   determining when to establish parental relationship |
|            |     and dependency                                      |
|            |                                                         |
|            | -   the inception of dependency                         |
|            |                                                         |
|            | -   how the marriage of a parent affects dependency     |
|            |                                                         |
|            | -   initial development action to determine parental    |
|            |     dependency                                          |
|            |                                                         |
|            | -   the action to take when additional information is   |
|            |     required                                            |
|            |                                                         |
|            | -   obtaining evidence pertaining to the marriage of a  |
|            |     parent, and                                         |
|            |                                                         |
|            | -   establishing dependency in domestic and foreign     |
|            |     cases.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > The term ***members of the family,*** for purposes of |
| ### a. Def | > determining conclusive dependency in domestic cases,  |
| inition: M | > and for determining factual dependency in foreign and |
| embers of  | > domestic cases, includes relatives                    |
| the Family |                                                         |
|            | -   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.                   |
+------------+---------------------------------------------------------+

Continued on next page

53\. General Information on Establishing Parental Dependency, Continued

+------------+---------------------------------------------------------+
| ####       | > The issue of whether or not a veteran's parent is     |
| # b. Paren | > *dependent* is distinct from that of whether or not   |
| tal Relati | > the parental relationship may be established.         |
| onship and | >                                                       |
|  Dependenc | > ***Disability and Death Compensation***: Both the     |
| y Required | > parental relationship *and* dependency of the parent  |
|            | > must be established in order for 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 Department of Veterans     |
|            | > Affairs (VA) purposes.                                |
|            | >                                                       |
|            | > ***References***: For more information on             |
|            |                                                         |
|            | -   relationship versus dependency, see M21-1MR, Part   |
|            |     III, Subpart iii, 5.I.45.c, and                     |
|            |                                                         |
|            | -   Parents' DIC, see M21-1MR, Part V, Subpart i, 1.    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > It is not material whether the parent's dependency    |
| ### c. Inc | > arose before or after the veteran's death. The        |
| eption of  | > relevant question is whether or not the parent is     |
| Dependency | > dependent *on* the date of entitlement to benefits.   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > A parent's marriage has no bearing on the parent's    |
| d. How the | > dependency, except to the extent that it changes the  |
|  Marriage  |                                                         |
| of a Paren | -   parent's financial situation, and                   |
| t Affects  |                                                         |
| Dependency | -   income limit for conclusive dependency.             |
|            |                                                         |
|            | > ***References***: For more information on             |
|            |                                                         |
|            | -   conclusive dependency, see M21-1MR, Part III,       |
|            |     Subpart iii, 5.J.54, and                            |
|            |                                                         |
|            | -   obtaining evidence pertaining to the marriage of a  |
|            |     parent, see                                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   M21-1MR, Part III, Subpart iii, 5.J.53.g, and       |
|            |                                                         |
|            | -   M21-1MR, Part III, Subpart iii, 5.I.51.             |
+------------+---------------------------------------------------------+

Continued on next page

53\. General Information on Establishing Parental Dependency, Continued

+------------+---------------------------------------------------------+
| #          | If taking initial development action to determine the   |
| #### e. In | dependency of a parent, send the claimant *VA Form      |
| itial Deve | 21-509*, *Statement of Dependency of Parents*.          |
| lopment Ac |                                                         |
| tion to De | *VA Form 21-509*                                        |
| termine De |                                                         |
| pendency o | -   is also used to determine continued dependency if   |
| f a Parent |     evidence is received that a dependent parent has    |
|            |     married, and                                        |
|            |                                                         |
|            | -   may be mailed to the claimant by selecting the 509  |
|            |     field on the Benefits Delivery Network (BDN) 204    |
|            |     screen.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > If additional information is required                 |
| #### f. Ac |                                                         |
| tion to Ta | -   request the information, and                        |
| ke if Addi |                                                         |
| tional Inf | -   send the claimant *VA Form 21-4138*, *Statement in  |
| ormation I |     Support of Claim*.                                  |
| s Required |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If evidence is received that a dependent parent has   |
| g. Obtaini | > married, advise the beneficiary that *VA Form 21-509* |
| ng Evidenc | > must be completed to establish that continued         |
| e Pertaini | > dependency exists.                                    |
| ng to the  | >                                                       |
| Marriage o | > If the beneficiary fails to respond to *VA Form       |
| f a Parent | > 21-509*, furnish a notice of proposed adverse action  |
|            | > under [38 CFR                                         |
|            | > 3.652](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_652.DOC). |
|            | >                                                       |
|            | > ***Reference***: For more information on conclusive   |
|            | > dependency, see M21-1MR, Part III, Subpart iii,       |
|            | > 5.J.54.                                               |
+------------+---------------------------------------------------------+

Continued on next page

53\. General Information on Establishing Parental Dependency, Continued

+------------+---------------------------------------------------------+
| ##         | > The table below shows when dependency may be          |
| ### h. Est | > established in domestic and foreign cases.            |
| ablishing  |                                                         |
| Dependency |                                                         |
|  in Domest |                                                         |
| ic and For |                                                         |
| eign Cases |                                                         |
+------------+---------------------------------------------------------+

+---------------------------+------------------------------------------+
| If the case is ...        | Then dependency may be established ...   |
+---------------------------+------------------------------------------+
| a domestic case           | -   when conclusive dependency is        |
|                           |     established, or                      |
|                           |                                          |
|                           | -   on a factual basis, if conclusive    |
|                           |     dependency cannot be established.    |
|                           |                                          |
|                           | ***References***: For more information   |
|                           | on                                       |
|                           |                                          |
|                           | -   conclusive dependency, see M21-1MR,  |
|                           |     Part III, Subpart iii, 5.J.54, and   |
|                           |                                          |
|                           | -   factual dependency, see M21-1MR,     |
|                           |     Part III, Subpart iii, 5.J.55.       |
+---------------------------+------------------------------------------+
| a foreign case            | on a factual basis only.                 |
|                           |                                          |
|                           | ***Reference***: For more information,   |
|                           | see M21-1MR, Part III, Subpart iii,      |
|                           | 5.J.55.                                  |
|                           |                                          |
|                           | ***Note***: Conclusive dependency does   |
|                           | *not* apply in foreign cases.            |
+---------------------------+------------------------------------------+

#### 54. Conclusive Dependency--Domestic Cases Only

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on conclusive         |
| troduction | > dependency in domestic cases. It includes information |
|            | > on how                                                |
|            |                                                         |
|            | -   income is used to determine dependency              |
|            |                                                         |
|            | -   additional family members affect income limits, and |
|            |                                                         |
|            | -   net worth affects family income.                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Conclusive dependency of a parent, other than a       |
| ### a. Inc | > parent who resides in a foreign country, exists when  |
| ome Limits | > the monthly income of the parent(s) does *not* exceed |
|            |                                                         |
|            | -   \$400 for a mother or father living alone, or       |
|            |                                                         |
|            | -   \$660 for a                                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   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](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_250.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > Add \$185 to the conclusive dependency income limit   |
|  Effect of | > for each additional member of the family who the      |
|  Additiona | > parent is under a legal or moral obligation to        |
| l Members  | > support.                                              |
| of the Fam |                                                         |
| ily on Inc |                                                         |
| ome Limits |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c. I | > If \$185 is added to the conclusive dependency income |
| ncome Cons | > limit for an additional member of the family          |
| iderations |                                                         |
|  for Addit | -   consider any income of the family member that is    |
| ional Fami |     available to the parent for support of the family   |
| ly Members |     member, and                                         |
|            |                                                         |
|            | -   do *not* consider the family member's net worth     |
|            |     unless it is actually available to the parent.      |
+------------+---------------------------------------------------------+

Continued on next page

54\. Conclusive Dependency--Domestic Cases Only, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > If family income is within the income limits          |
|  Net Worth | > specified under [38 CFR                               |
|            | > 3.250](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_250.DOC), |
|            | > 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.           |
+------------+---------------------------------------------------------+

#### 55. Factual Dependency--Foreign Cases and Domestic Cases

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on factual dependency |
| troduction | > in foreign and domestic cases, including              |
|            |                                                         |
|            | -   the standard for determining whether factual        |
|            |     dependency exists                                   |
|            |                                                         |
|            | -   net worth considerations, and                       |
|            |                                                         |
|            | -   what to do when one parent's claim is denied        |
|            |     because of non-dependency.                          |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > In all foreign cases and in those domestic cases      |
| a. Factual | > where income exceeds the limits for conclusive        |
|  Dependenc | > dependency under [38 CFR                              |
| y Standard | > 3.250](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_250.DOC), |
|            | > 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 himself/herself and for    |
|            | > members of his/her 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 the  |
|            | > Veterans Service Representative (VSR).                |
+------------+---------------------------------------------------------+

Continued on next page

55\. Factual Dependency--Foreign Cases and Domestic Cases, Continued

+------------+---------------------------------------------------------+
| ###        | > If conclusive dependency *cannot* be established, net |
| ## b. Net  | > worth must be considered. Evaluate a parent's net     |
| Worth Cons | > worth separately even if the parents are living       |
| iderations | > together.                                             |
|            | >                                                       |
|            | > The table below describes considerations with regard  |
|            | > to                                                    |
|            |                                                         |
|            | -   net worth and                                       |
|            |                                                         |
|            | -   establishing factual dependency.                    |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If ...                           | Then ...                          |
+----------------------------------+-----------------------------------+
| it is reasonable to expect that  | deny factual dependency.          |
| the parent's net worth may be    |                                   |
| consumed for the parent's        |                                   |
| maintenance                      |                                   |
+----------------------------------+-----------------------------------+
| -   one parent is not considered | > it is possible for one parent   |
|     dependent because of         | > to be found dependent and the   |
|     excessive net worth, and     | > other not dependent, even       |
|                                  | > though they live together in    |
| -   the assets are               | > the same household.             |
|                                  | >                                 |
| ```{=html}                       | > ***Note***: Attribute half of   |
| <!-- -->                         | > all joint or community property |
| ```                              | > to each parent.                 |
| -   one parent's separate        | >                                 |
|     property, and                | > ***Reference***: For more       |
|                                  | > information, see M21-1MR, Part  |
| -   not joint or community       | > III, Subpart iii, 5.J.55.c.     |
|     property                     |                                   |
+----------------------------------+-----------------------------------+
| -   a parent marries someone who | > only consider                   |
|     is *not* the veteran's other |                                   |
|     parent, or                   | -   the claimant's individual net |
|                                  |     worth, and                    |
| -   two parents live together    |                                   |
|     but only one files for death | -   half of any joint or          |
|     compensation                 |     community property.           |
|                                  |                                   |
|                                  | ***Reference***: For more         |
|                                  | information, see [38 CFR          |
|                                  | 3.26                              |
|                                  | 3](http://www.warms.vba.va.gov/re |
|                                  | gs/38CFR/BOOKB/PART3/S3_263.DOC). |
+----------------------------------+-----------------------------------+

+------------+---------------------------------------------------------+
| #          | > If one parent's claim is denied because of            |
| #### c. On | > non-dependency, but the other parent's claim is       |
| e of Two P | > granted, the successful claimant is entitled to the   |
| arents Not | > single parent rate.                                   |
|  Dependent |                                                         |
+------------+---------------------------------------------------------+

#### 56. Administrative Decisions--Dependency Determinations

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > Use the table below to determine the appropriate      |
| ## a. Admi | > actions to take when                                  |
| nistrative |                                                         |
|  Decisions | -   factual dependency exists, or                       |
|            |                                                         |
|            | -   dependency cannot be established.                   |
+------------+---------------------------------------------------------+

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

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

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains                                   |
| troduction |                                                         |
|            | -   information on when to require proof of continued   |
|            |     dependency in connection with award action, and     |
|            |                                                         |
|            | -   the procedure for requesting proof of continued     |
|            |     dependency in death and disability cases.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. W | > Proof of continued dependency is required prior to    |
| hen to Req | > award action in disability and death compensation     |
| uire Proof | > cases when a claim involving a dependent parent has   |
|            | > been pending for an extended period of time.          |
|            | >                                                       |
|            | > ***Example***: Situations may arise in which a        |
|            | > determination of entitlement has been delayed pending |
|            | > receipt of                                            |
|            |                                                         |
|            | -   service records, or                                 |
|            |                                                         |
|            | -   other evidence.                                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > Follow the steps in the table below to request proof  |
|  Obtaining | > of continued dependency in death and disability cases |
|  Proof of  | > prior to award action.                                |
| Continued  |                                                         |
| Dependency |                                                         |
|  in Death  |                                                         |
| and Disabi |                                                         |
| lity Cases |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Review the application.                                      |
+-------+--------------------------------------------------------------+
| 2     | Process the award if there is information in the application |
|       | that                                                         |
|       |                                                              |
|       | -   establishes the parent was dependent when claim was      |
|       |     filed, and                                               |
|       |                                                              |
|       | -   indicates that the dependency status has *not* changed.  |
|       |                                                              |
|       | ***Note***: If it appears that the dependency status has     |
|       | changed                                                      |
|       |                                                              |
|       | -   send the parent *VA Form 21-509*, and                    |
|       |                                                              |
|       | -   defer processing the award pending its receipt.          |
+-------+--------------------------------------------------------------+

Continued on next page

57\. Requests for Proof of Continued Dependency in Connection With Award
Action, Continued

  -----------------------------------------------------------------------
  b\. Obtaining Proof of Continued Dependency in Death and Disability
  Cases (continued)

  -----------------------------------------------------------------------

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 3     | If the claim is related to                                   |
|       |                                                              |
|       | -   death compensation, go to Step 4.                        |
|       |                                                              |
|       | -   disability compensation, go to Step 5.                   |
+-------+--------------------------------------------------------------+
| 4     | -   Send the parent *VA Form 21-509*                         |
|       |                                                              |
|       | -   advise the parent that failure to return the completed   |
|       |     form within 60 days will result in termination of        |
|       |     payments, and                                            |
|       |                                                              |
|       | -   go to Step 6.                                            |
+-------+--------------------------------------------------------------+
| 5     | -   Send the veteran *VA Form 21-509*                        |
|       |                                                              |
|       | -   advise the veteran that failure to return the completed  |
|       |     form within 60 days will result in removal of the        |
|       |     additional amount for the dependent parent, and          |
|       |                                                              |
|       | -   go to Step 7.                                            |
+-------+--------------------------------------------------------------+
| 6     | -   Establish a 60-day computer control under diary reason   |
|       |     code 22, "verify income or dependency," and              |
|       |                                                              |
|       | -   go to Step 7.                                            |
+-------+--------------------------------------------------------------+
| 7     | If the required evidence has *not* been received at the end  |
|       | of the 60-day period                                         |
|       |                                                              |
|       | -   write to the beneficiary                                 |
|       |                                                              |
|       | -   propose to terminate benefits effective the date of      |
|       |     inception of the award                                   |
|       |                                                              |
|       | -   furnish a notice of proposed adverse action, and         |
|       |                                                              |
|       | -   establish a second 60-day control period.                |
+-------+--------------------------------------------------------------+
| 8     | If the required evidence has *not* been received within the  |
|       | second 60-day period                                         |
|       |                                                              |
|       | -   terminate the award (death benefit cases), or            |
|       |                                                              |
|       | -   remove the parent (disability compensation cases)        |
|       |     effective the date benefits to or for the parent were    |
|       |     first paid.                                              |
+-------+--------------------------------------------------------------+

#### 58. Follow-Ups to Determine Whether Dependency Has Ceased

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information about conducting      |
| troduction | > follow-ups to determine whether dependency has        |
|            | > ceased. It includes information on                    |
|            |                                                         |
|            | -   determining when follow-ups should be conducted     |
|            |                                                         |
|            | -   master record control                               |
|            |                                                         |
|            | -   the duration of the control, and                    |
|            |                                                         |
|            | -   establishing control when minor children are        |
|            |     involved.                                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Under certain circumstances, an award may be made for |
| # a. When  | > a parent whose present economic status warrants a     |
| Follow-Ups | > determination of dependency, but whose financial      |
|  Should Be | > situation may reasonably be expected to improve in    |
|  Conducted | > 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.       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b. M | > If an award is made and there is a reasonable         |
| aster Reco | > expectation that the parent's financial situation may |
| rd Control | > improve, establish a computer control under reason    |
|            | > code 22 for a follow-up at an appropriate date to     |
|            | > determine whether dependency has ceased.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c.   | > If it appears probable that the parent's financial    |
|  Duration  | > situation may improve by reason of recovery of        |
| of Control | > employability or similar circumstances, where a       |
|            | > future date cannot be definitely estimated, establish |
|            | > the control for one to two years.                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > If the parent's dependency is based on financial      |
| ### d. Min | > responsibility for a minor child or children,         |
| or Childre | > establish                                             |
| n Involved |                                                         |
|            | -   a control 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 60-day control for receipt of the required        |
|            |     evidence/information.                               |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information about changes in the  |
| troduction | > marital and dependency status of parents in           |
|            | > disability and death compensation cases, including    |
|            |                                                         |
|            | -   when to reevaluate dependency, and                  |
|            |                                                         |
|            | -   handling cessation of dependency                    |
|            |                                                         |
|            | -   reducing or terminating awards, and                 |
|            |                                                         |
|            | -   award adjustment when the dependency of one parent, |
|            |     on a two-parent award, ceases.                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Reevaluation of a parent's dependency is required     |
|  When to R | > when there is any                                     |
| eevaluate  |                                                         |
| Dependency | -   change in a parent's marital status, and            |
|            |                                                         |
|            | -   significant change in a parent's income or net      |
|            |     worth.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > If it is determined that a parent is no longer        |
| #### b. Ha | > dependent because of a change in economic status,     |
| ndling Ces | > provide a notice of proposed adverse action.          |
| sation of  |                                                         |
| Dependency |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c.   | > Reduce a disability compensation award or terminate a |
| Reducing o | > death compensation award effective the first day of   |
| r Terminat | > the calendar year following the calendar year during  |
| ing Awards | > which dependency ceased.                              |
|            | >                                                       |
|            | > ***Note***: Use reason code                           |
|            |                                                         |
|            | -   11 (Income Change or Termination) or 12 (Excessive  |
|            |     Net Worth) for termination of death compensation,   |
|            |     or                                                  |
|            |                                                         |
|            | -   56 (Dependent Removed) for amending disability      |
|            |     compensation awards.                                |
|            |                                                         |
|            | > ***References***: For                                 |
|            |                                                         |
|            | -   more information on reducing a disability           |
|            |     compensation award or terminating death             |
|            |     compensation, see [38 CFR 3.660(a)(1) and           |
|            |     (2)](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_660.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   information on how a change in marital status       |
|            |     affects payment of Parents' DIC, see M21-1MR, Part  |
|            |     V, Subpart iii, 1.D.26 (TBD) or [M21-1, Part IV,    |
|            |     16.18](htt                                          |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part4/ch16.doc). |
+------------+---------------------------------------------------------+

Continued on next page

59\. Changes in Marital and Dependency Status of Parents in Disability
and Death Compensation Cases, Continued

+------------+---------------------------------------------------------+
| ##### d. A | > If it is determined that one of two parents receiving |
| ward Adjus | > death compensation is no longer dependent, but that   |
| tment When | > the other parent continues to be dependent, provide a |
|  the Depen | > notice of proposed adverse action to the parent who   |
| dency of O | > is no longer dependent.                               |
| ne Parent, | >                                                       |
|  on a Two- | > If no evidence is received showing the parent remains |
| Parent Awa | > dependent, increase the rate for the remaining parent |
| rd, Ceases | > to that payable under dependency code 50 or 60        |
|            | > (whichever is appropriate), effective the date of     |
|            | > termination of the other parent's award.              |
|            | >                                                       |
|            | > ***Note***: Use reason code 56 on the award line that |
|            | > reflects the increased rate.                          |
|            | >                                                       |
|            | > ***References***: For more information on             |
|            |                                                         |
|            | -   award adjustment when the dependency of one parent, |
|            |     on a two-parent award, ceases, see [38 CFR          |
|            |     3.651](http://w                                     |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_651.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   the rate payable under dependency codes 50 and 60,  |
|            |     see [M21-1, Part I, Appendix                        |
|            |     B](http://www.warms.vba.va.gov/M21_1.html).         |
+------------+---------------------------------------------------------+

#### 60. Death of One of Two Dependent Parents

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the death of one   |
| troduction | > of two dependent parents. It includes information on  |
|            |                                                         |
|            | -   action taken on the death of one of two parents     |
|            |                                                         |
|            | -   automatic rate adjustment for the remaining parent, |
|            |     and                                                 |
|            |                                                         |
|            | -   handling VA's failure to make a rate adjustment due |
|            |     to an administrative error.                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The table below describes the action taken in cases   |
| a. Action  | > where one of two dependent parents dies.              |
| Taken on t |                                                         |
| he Death o |                                                         |
| f One of T |                                                         |
| wo Parents |                                                         |
+------------+---------------------------------------------------------+

+---------------+-----------------------------+-----------------------+
| Type of       | Action                      | Additional            |
| Benefit       |                             | Information           |
+---------------+-----------------------------+-----------------------+
| Death         | -   Terminate the deceased  | For more information  |
| Compensation  |     parent's award          | on                    |
|               |     effective the first day |                       |
|               |     of the month of death.  | -   dependency codes, |
|               |                             |     see [M21-1, Part  |
|               | -   Increase the remaining  |     I, Appendix       |
|               |     parent's benefits to    |     B                 |
|               |     the rate payable under  | ](http://www.warms.vb |
|               |     dependency code 50 or   | a.va.gov/M21_1.html), |
|               |     60 (whichever is        |     and               |
|               |     appropriate),effective  |                       |
|               |     the date of termination | -   how the death of  |
|               |     of the other parent's   |     one of two        |
|               |     award.                  |     dependent parents |
|               |                             |     affects death     |
|               | ***Note***: Use reason code |     compensation      |
|               | 56 on the award line that   |     benefits, see     |
|               | reflects the increased      |                       |
|               | rate.                       | ```{=html}            |
|               |                             | <!-- -->              |
|               |                             | ```                   |
|               |                             | -   [38 CFR           |
|               |                             |     3.500(g)(1)](     |
|               |                             | http://www.warms.vba. |
|               |                             | va.gov/regs/38CFR/BOO |
|               |                             | KB/PART3/S3_500.DOC), |
|               |                             |     and               |
|               |                             |                       |
|               |                             | -   [38 CFR           |
|               |                             |     3.651](           |
|               |                             | http://www.warms.vba. |
|               |                             | va.gov/regs/38CFR/BOO |
|               |                             | KB/PART3/S3_651.DOC). |
+---------------+-----------------------------+-----------------------+

Continued on next page

60\. Death of One of Two Dependent Parents, Continued

  -----------------------------------------------------------------------
  a\. Action Taken on the Death of One of Two Parents (continued)

  -----------------------------------------------------------------------

+---------------+-----------------------------+-----------------------+
| Type of       | Action                      | Additional            |
| Benefit       |                             | Information           |
+---------------+-----------------------------+-----------------------+
| Disability    | Reduce the veteran's award  | For more information  |
| Compensation  | to the rate for a veteran   | on how the death of   |
|               | with one dependent parent   | one of two dependent  |
|               | effective the first of the  | parents affects       |
|               | month after the month of    | disability            |
|               | the parent's death.         | compensation          |
|               |                             | benefits, see [38 CFR |
|               | ***Note***: If the parent   | 3.500(g)(2)](         |
|               | died before October 1,      | http://www.warms.vba. |
|               | 1982, the reduction is      | va.gov/regs/38CFR/BOO |
|               | effective the first of the  | KB/PART3/S3_500.DOC). |
|               | year after the year of the  |                       |
|               | parent's death.             |                       |
+---------------+-----------------------------+-----------------------+
| Parents' DIC  | \-\--                       | For more information  |
|               |                             | on                    |
|               |                             |                       |
|               |                             | how the death of one  |
|               |                             | of two dependent      |
|               |                             | parents affects       |
|               |                             | Parents' DIC, see     |
|               |                             | M21-1MR, Part V,      |
|               |                             | Subpart iii, 1.D.26   |
|               |                             | (TBD) or [M21-1, Part |
|               |                             | IV,                   |
|               |                             | 16                    |
|               |                             | .18](http://www.warms |
|               |                             | .vba.va.gov/admin21/m |
|               |                             | 21_1/part4/ch16.doc). |
+---------------+-----------------------------+-----------------------+

+------------+---------------------------------------------------------+
| #####      | > When one parent is removed from a two-parent death    |
|  b. Automa | > compensation award because of death or cessation of   |
| tic Rate A | > dependency, VA automatically increases the rate       |
| djustment  | > payable to the remaining parent. A specific claim for |
| for Remain | > increased benefits from the remaining parent is not   |
| ing Parent | > required.                                             |
|            | >                                                       |
|            | > ***Reference***: For more information on increasing   |
|            | > the death compensation rate payable to a remaining    |
|            | > parent, see [38 CFR                                   |
|            | > 3.651(a)](http://w                                    |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_651.DOC). |
+------------+---------------------------------------------------------+

Continued on next page

60\. Death of One of Two Dependent Parents, Continued

+------------+---------------------------------------------------------+
| ##### c    | > If VA fails to increase the rate payable to the       |
| . Handling | > surviving (or remaining) parent due to an             |
|  VA's Fail | > administrative error, there is no time limit for      |
| ure to Mak | > making the adjustment.                                |
| e a Rate A | >                                                       |
| djustment  | > ***Example***:                                        |
| Due to an  |                                                         |
| Administra | -   1981: A father in receipt of death compensation     |
| tive Error |     dies. The father's award is stopped in a timely     |
|            |     manner, 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.           |
+------------+---------------------------------------------------------+

#### 61. Reestablishment of Parental Dependency

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information about reestablishment |
| troduction | > of parental dependency, including                     |
|            |                                                         |
|            | -   when and how to                                     |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   resume payments, and                                |
|            |                                                         |
|            | -   adjust awards, and                                  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   an example of when                                  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   dependency is reestablished and payments resume,    |
|            |     and                                                 |
|            |                                                         |
|            | -   dependency is reestablished and an award adjusted.  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > If payments of death compensation are terminated or   |
| ### a. Whe | > additional disability compensation payments are       |
| n to Resum | > reduced because a parent was determined *not* to be   |
| e Payments | > 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 termination or reduction. Otherwise, the          |
|            | > effective date is determined by the date of claim     |
|            | > subject to [38 CFR                                    |
|            | > 3.31](http://                                         |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_31.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > ***Situation***: The table below describes the        |
| ### b. Exa | > situation.                                            |
| mple: Depe |                                                         |
| ndency Ree |                                                         |
| stablished |                                                         |
|  and Payme |                                                         |
| nts Resume |                                                         |
+------------+---------------------------------------------------------+

+---------------------+------------------------------------------------+
| Date                | Description                                    |
+---------------------+------------------------------------------------+
| September 29, 2001  | -   A parent in receipt of death compensation  |
|                     |     gets a job paying \$60,000 per year and    |
|                     |     the first paycheck is received.            |
|                     |                                                |
|                     | -   A determination is made that dependency    |
|                     |     has ceased to exist.                       |
+---------------------+------------------------------------------------+
| January 1, 2002     | The award is stopped under [38 CFR             |
|                     | 3.660(a)(2)](http://www.warms.                 |
|                     | vba.va.gov/regs/38CFR/BOOKB/PART3/S3_660.DOC). |
+---------------------+------------------------------------------------+

Continued on next page

61\. Reestablishment of Parental Dependency, Continued

  -----------------------------------------------------------------------
  b\. Example: Dependency Reestablished and Payments Resume (continued)

  -----------------------------------------------------------------------

+---------------------+------------------------------------------------+
| Date                | Description                                    |
+---------------------+------------------------------------------------+
| February 13, 2002   | -   The parent reports loss of the job and     |
|                     |     states that the last paycheck was received |
|                     |     on January 26, 2002.                       |
|                     |                                                |
|                     | -   The parent seeks to be restored to the     |
|                     |     death compensation rolls.                  |
+---------------------+------------------------------------------------+

+-----------------------------------------------------------------------+
| > ***Result***: The authorization activity determines that dependency |
| > arose again as of January 27, 2002. Payments may resume from        |
| > January 27, 2002 (February 1, 2002, after application of [38 CFR    |
| >                                                                     |
| 3.31](http://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_31.DOC)). |
| >                                                                     |
| > ***Note***: If the last death compensation check was received on    |
| > November 11, 2001, payments to the parent would continue without    |
| > interruption because termination would *not* be earlier than        |
| > January 1, 2002.                                                    |
+-----------------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > If, because dependency has ceased, one parent is      |
| ### c. Oth | > removed from a two-parent award of death              |
| er Award A | > compensation, and the parent whose award was stopped  |
| djustments | > subsequently submits new evidence reestablishing      |
|            | > entitlement, an award adjustment will be necessary.   |
|            | >                                                       |
|            | > ***Note***: If the parent whose award was stopped is  |
|            | > entitled to retroactive benefits, do *not* create an  |
|            | > overpayment on the other parent's award. Instead,     |
|            | > take the action described in the example shown in     |
|            | > M21-1MR, Part III, Subpart iii, 5.J.61d.              |
+------------+---------------------------------------------------------+

Continued on next page

61\. Reestablishment of Parental Dependency, Continued

+------------+---------------------------------------------------------+
| #          | > ***Situation***: The table below describes the        |
| #### d. Ex | > situation.                                            |
| ample: Dep |                                                         |
| endency Re |                                                         |
| establishe |                                                         |
| d and Awar |                                                         |
| d Adjusted |                                                         |
+------------+---------------------------------------------------------+

  --------------------- -------------------------------------------------
  Date                  Description

  \-\--                 Two parents are receiving death compensation.

  October 28, 2001      It is determined that the mother's dependency has
                        ceased.

  January 1, 2002       The mother's award is stopped and the father's
                        award is increased to \$75 per month (the single
                        parent rate).

  March 14, 2002        The mother submits evidence reestablishing
                        dependency from October 28, 2001.

  April 25, 2002        A letter is sent to the father notifying him of
                        the proposed reduction. He does not respond.

  August 7, 2002        The mother's benefits are resumed. Date of last
                        single parent payment to the father is August 1,
                        2002
  --------------------- -------------------------------------------------

+-----------------------------------------------------------------------+
| > ***Adjustments***:                                                  |
|                                                                       |
| -   Pay the mother \$5 per month from January 1, 2002, to August 1,   |
|     2002.                                                             |
|                                                                       |
| -   Pay the full \$40 per month rate effective August 1, 2002.        |
|                                                                       |
| -   Reduce the father to the \$40 rate effective August 1, 2002.      |
+-----------------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e.   | > Follow the steps in the table below to adjust an      |
| Procedure  | > award because entitlement to death compensation is    |
| for Adjust | > reestablished.                                        |
| ing Awards | >                                                       |
|            | > ***Note***: This procedure applies whether or not the |
|            | > parents are living together.                          |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Furnish a notice of proposed adverse action to the other     |
|       | parent.                                                      |
+-------+--------------------------------------------------------------+
| 2     | Establish a 60-day control.                                  |
+-------+--------------------------------------------------------------+
| 3     | At the end of the control period, pay                        |
|       |                                                              |
|       | -   full benefits to the parent whose award was stopped from |
|       |     the date of last payment (DLP), and                      |
|       |                                                              |
|       | -   the difference between the two-parent rate and the       |
|       |     single parent rate that was paid to the other parent for |
|       |     any periods prior to the DLP.                            |
+-------+--------------------------------------------------------------+