To amend title 38, United States Code, to allow for substitution of parties in the case of a claim for benefits provided by the Department of Veterans Affairs when the applicant for such benefits dies while the claim is pending, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Claims Continuation Act''.

SEC. 2. CONTINUATION OF CLAIM AND SUBSTITUTION OF PARTIES UPON DEATH OF 
              APPLICANT FOR BENEFITS.

    (a) In General.--Chapter 51 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 5127. Deaths of applicants for benefits: continuation of claims 
              and substitution of parties
    ``(a) In the case of a claim for monetary benefits (other than 
insurance and servicemember's indemnity) under laws administered by the 
Secretary that was submitted to the Secretary by a claimant who dies on 
or after the date of the enactment of the Veterans' Claims Continuation 
Act and before a decision on that claim becomes final in accordance 
with section 7291 of this title, the claim shall not be extinguished 
if, within one year of the claimant's death, an eligible person submits 
an application to the Secretary, or submits a motion to a court with 
jurisdiction over the claim, to be substituted as the claimant in order 
to continue prosecution of that claim. The Secretary or the court, as 
the case may be, shall approve any such application submitted by an 
eligible person.
    ``(b)(1) For purposes of this section and section 7270 of this 
title, subject to paragraph (2), the term `eligible person' means any 
of the following individuals:
            ``(A) The surviving spouse.
            ``(B) Surviving children who have attained the age of 21.
            ``(C) A surviving parent.
            ``(D) The executor, administrator or other legal 
        representative of the deceased claimant's estate.
            ``(E) The next of kin of the veteran.
    ``(2) In a case where more than one individual referred to in 
paragraph (1) submits an application or motion under subsection (a) to 
be substituted as a claimant, the eligible person shall be determined 
in the order listed in subparagraphs (A) through (E) of paragraph (1).
    ``(c) Upon being notified of the death of a claimant, the Secretary 
shall send a notice to the estate of the decedent at the decedent's 
last know address and to the authorized representative of the decedent, 
if any, informing the estate and the representative that the claim will 
be dismissed unless an application for substitution as the claimant is 
received by the Secretary within one year of the claimant's death. If 
the Secretary has actual knowledge of the name and last known address 
of the surviving spouse, surviving children, surviving parent, or the 
legal representative of the decedent's estate, a copy of such notice 
shall be mailed or delivered to each such person. An application under 
this section for substitution as the claimant on a claim must be filed 
within one year after the date of the claimant's death.
    ``(d) A person named as a substitute claimant under section (a) 
shall be accorded all the rights and responsibilities of the original 
claimant.
    ``(e) If benefits are payable as a result of a decision on a claim 
by a substituted claimant named under this section, such benefits shall 
be paid as follows:
            ``(1) If the deceased claimant was claiming benefits as a 
        veteran, to the living person first listed below:
                    ``(A) The veteran's spouse.
                    ``(B) The veteran's children (in equal shares).
                    ``(C) The veteran's dependent parents (in equal 
                shares).
            ``(2) If the deceased claimant was claiming benefits as the 
        surviving spouse of a veteran, to the surviving children of the 
        deceased veteran (in equal shares).
            ``(3) If the deceased claimant was claiming benefits under 
        chapter 18 of this title as the child of a veteran, to the 
        surviving parents of the child (in equal shares).
            ``(4) If there is no beneficiary who meets the criteria of 
        paragraphs (1), (2), and (3) and in all other cases, to the 
        decedent's estate, unless the estate will escheat.
    ``(f) No part of any benefit payable to a person as a result of 
being substituted as the claimant on a claim under this section shall 
be used to reimburse any political subdivision of the United States for 
expenses incurred in the last sickness or burial of the deceased 
claimant.
    ``(g) Upon the appointment of a substitute claimant, the Secretary 
shall notify the person substituted as the claimant as to the evidence 
or information necessary to substantiate the pending claim. If such 
information or evidence is not received within one year from the date 
of such notification, no benefits may be paid on the claim.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``5127. Deaths of applicants for benefits: continuation of claims and 
                            substitution of parties.''.

SEC. 3. PAYMENT OF ACCRUED BENEFITS APPLICABLE TO DEATHS BEFORE DATE OF 
              ENACTMENT.

    (a) In General.--Subsection (a) of section 5121 of title 38, United 
States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``periodic monetary benefits'' and all that follows through 
        ``be paid'' and inserting ``accrued benefits of a deceased 
        individual who died before the date of the enactment of the 
        Veterans' Claims Continuation Act that are due and unpaid for a 
        period not to exceed two years shall be paid''; and
            (2) in paragraph (5), by striking ``only so much'' and all 
        that follows through ``burial'' and inserting ``to the 
        decedent's estate, unless the estate will escheat''.
    (b) Definition of Accrued Benefits.--Such section is further 
amended by adding at the end the following new subsection:
    ``(d) For purposes of this section and section 5122 of this title, 
the term `accrued benefits', with respect to a deceased individual, 
means periodic monetary benefits (other than insurance and 
servicemember's indemnity) under laws administered by the Secretary to 
which the deceased individual was entitled at death under existing 
ratings or decisions or based on evidence in the file at date of 
death.''.

SEC. 4. SUBSTITUTION OF SURVIVOR IN CASES PENDING BEFORE A COURT.

    (a) In General.--(1) Subchapter II of chapter 72 of title 38, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 7270. Cases pending on death of claimant: substitution of 
              parties
    ``(a) If a claimant dies before filing an appeal under section 7266 
of this title, an eligible person may file an appeal as a substituted 
claimant for the decedent within the time period specified under 
section 7266 of this title. If an appellant or respondent dies while a 
claim is pending before a court and before a final decision is rendered 
under section 7291 of this title, an eligible person may move the court 
for substitution of claimant in the pending action. Any such appeal to 
the United States Court of Appeals for Veterans Claims or to the United 
States Court of Appeals for the Federal Circuit must be filed within 
the time period prescribed by sections 7266 and 7292 of this title, 
respectively, or within one year of the claimant's death, whichever is 
earlier.
    ``(b) In any case in which a final decision under section 7291 of 
this title has not been made, an eligible person may move a court to be 
substituted as the appellant (or respondent as the case may be) for an 
appellant or respondent who dies while an appeal is pending. The court 
shall, upon filing of a timely motion, appoint an eligible person to 
substitute as the claimant to continue prosecution or defense of that 
claim.
    ``(c) Nothing in this section shall require or authorize 
substitution for a deceased claimant if a final decision under section 
7291 of this title has been entered before the filing of a motion for 
substitution.
    ``(d) In this section, the term `eligible person' has the meaning 
given that term in section 5127(b) of this title.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``7270. Cases pending on death of claimant: substitution of parties.''.
    (b) Effective Date.--Section 7270 of title 38, United States Code, 
as added by subsection (a), shall apply with respect to deaths of 
claimants on or after the date of the enactment of this Act.

Summary: Veterans' Claims Continuation Act - Authorizes the substitution of any of the following parties in the case of a veteran's claim for benefits provided through the Department of Veterans Affairs when the original claimant dies while the claim is pending: (1) the surviving spouse; (2) any surviving child at least 21 years of age; (3) a surviving parent; (4) the legal representative of the deceased claimant's estate; or (5) the next of kin of the veteran. Requires: (1) the substituting party to file a substitution application or motion within one year of the original claimant's death; and (2) the Secretary of Veterans Affairs to notify the estate and legal representative of the deceased claimant that the claim will be dismissed if a substitute application or motion is not filed within such time period.Authorizes: (1) the payment of accrued benefits in the case of deaths occurring before the date of enactment of this Act; and (2) the substitution of the above eligible parties in cases pending before a U.S. Circuit Court or the U.S. Court of Appeals for Veterans Claims.