ACCRUED BENEFITS AND SUBSTITUTION

Disabilities determined by VA to be related to your military service can lead to monthly non-taxable compensation, enrollment in the 

VA health care system, a 10-point hiring preference for federal employment and other important benefits. Ask your VA 

representative or Veterans Service Organization representative about Disability Compensation, Pension, Health Care, Caregiver 

Program, Career Services, Educational Assistance, Home Loan Guaranty, Insurance and/or Dependents and Survivors’ Benefits.

What Are Accrued Benefits?

Accrued benefits are benefits that are due to the beneficiary based on an existing decision on a claim 

for benefits or evidence in the Veteran’s claim file at the date of death, but not paid prior to death.

Examples of accrued benefits include:

1. A claim or appeal for a recurring benefit was pending at the time of the beneficiary’s death and 

all of the evidence needed for a favorable decision was in the file on the date of death (evidence 

in file “means” the evidence was in VA’s possession, in a VA facility, even if it was not actually 

physically in the claims file), OR

2. A claim for a recurring benefit had not been allowed, but the beneficiary died before award 

action could be taken, OR

3. At the time of the beneficiary’s death, one or more benefit checks had not been deposited or 

negotiated.

Who is Eligible to Receive Accrued Benefits?

Generally, VA pays accrued benefits based on the claimant’s relationship to the deceased Veteran. If 

there is no living person eligible to claim accrued benefits, VA pays accrued benefits based on

reimbursement. 

Relationship:

If accrued benefits are payable, they are paid to the first living person listed below:

When the person entitled is the 

Veteran’s...

VA pays the accrued benefit in ...

Surviving spouse Full to the surviving spouse
Contact us: www.va.gov 1-800-827-1000 

October 2014

Veteran’s dependent children, including children 

between the ages of 18 and 23 and attending 

school or children found helpless. (If the child is 

not a dependent for VA purposes, he/she may 

receive accrued benefits based on reimbursement 

(see below)

Equal shares

Parents (both) Equal shares, if they are determined to be 

dependent parents at the date of the Veteran’s 

death

Sole surviving parent Full to the sole surviving parent, if he or she is 

determined to be a dependent parent at the 

date of the Veteran’s death

If the death is that of a... Then the accrued is payable to the ...

Surviving spouse Veteran's children.

Note: Accrued Dependent's Educational 

Assistance (DEA) is payable only as 

reimbursement on the expenses of last 

sickness and burial.

Child Surviving child(ren) of the Veteran who are 

entitled to death compensation, dependency 

and indemnity compensation, or death 

pension with the exceptions as listed below.

 If the deceased child was entitled to an 

apportioned share of the surviving 

spouse's award, the accrued benefit is 

payable only as reimbursement on the 

expenses of such deceased child's last 

sickness or burial.
Contact us: www.va.gov 1-800-827-1000 

October 2014

 If the deceased child was in receipt of 

death 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.

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 his/her 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.

Reimbursement: 

If there are no living persons who are entitled to accrued benefits on the basis of relationship, VA will 

pay accrued benefits to reimburse the person(s) who paid for or who are responsible to pay for the 

Veteran’s last illness and burial expenses. If the expenses were paid from funds of the deceased 

beneficiary’s estate, the claim should be filed by the executor of the estate. 

The amount of accrued benefits payable as reimbursement is limited to the actual amount of expenses 

paid, and the amount of accrued benefits available.

What is Substitution?

Substitution is a type of accrued benefit. If a Veteran or other claimant dies while his or her claim or 

appeal is pending, a person eligible to receive accrued benefits may substitute for the Veteran or other 

claimant to process the claim or appeal through to completion. 
Contact us: www.va.gov 1-800-827-1000 

October 2014

How and When Can a Person File a Claim for Accrued Benefits?

Use the following forms (any of which may be used to claim accrued benefits) based on the following; 

Relationship

 VA Form 21-601, Application for Accrued Amounts Due a Deceased Beneficiary

 VA Form 21-534, Application for Dependency and Indemnity Compensation, Death Pension 

and Accrued Benefits by a Surviving Spouse or Child

 VA Form 21-535, Application for Dependency and Indemnity Compensation by Parent(s) 

(Including Accrued Benefits and Death Compensation when Applicable)

 VA Form 21-0847, Request for Substitution of Claimant Upon Death of Claimant

Reimbursement

 VA Form 21-601, Application for Accrued Amounts Due A Deceased Beneficiary

VA must receive an accrued benefits claim within one year after the Veteran’s death, and/or within one 

year from the date of notification to the Veteran. 

VA must receive a substitution of claimant claim within one year of the original claimant’s death. If the 

substitute dies, the next successive substitute has one year following the substitute’s death to file a claim.