Last Month Compensation Check After Decease

[jessejames]

FOR A SPOUSE OF A DECEASED VET'S WIFE I AM HELPING.

Do you intrepret this as I do, "that the spouse is entitled to the last month ofcompensation as if the veteran HAD NOT DIED". 38 CFR 3.20ff

38 § 3.20 Surviving spouse's benefit for month of veteran's death.

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(a) Where the veteran died on or after December 1, 1962, and before October 1, 1982, the rate of death pension or dependency and indemnity compensation otherwise payable for the surviving spouse for the month in which the death occurred shall be not less than the amount of pension or compensation which would have been payable to or for the veteran for that month but for his or her death.

(Authority: 38 U.S.C. 5310)

( Where the veteran dies on or after October 1, 1982, the surviving spouse may be paid death pension or dependency and indemnity compensation for the month in which the veteran died at a rate equal to the amount of compensation or pension which would have been payable to the veteran for that month had death not occurred, but only if such rate is equal to or greater than the monthly rate of death pension or dependency and indemnity compensation to which the surviving spouse is entitled. Otherwise, no payment of death pension or dependency and indemnity compensation may be made for the month in which the veteran died.

(Authority: 38 U.S.C. 5111©)

©(1) Where a veteran receiving compensation or pension dies after December 31, 1996, the surviving spouse, if not entitled to death compensation, dependency and indemnity compensation, or death pension for the month of death, shall be entitled to a benefit for that month in an amount equal to the amount of compensation or pension the veteran would have received for that month but for his or her death.

(2) A payment issued to a deceased veteran as compensation or pension for the month in which death occurred shall be treated as payable to that veteran's surviving spouse, if the surviving spouse is not entitled to death compensation, dependency and indemnity compensation or death pension for that month and, if negotiated or deposited, shall be considered to be the benefit to which the surviving spouse is entitled under paragraph ©(1) of this section. However, if such payment is in an amount less than the amount of the benefit under paragraph ©(1) of this section, the unpaid difference shall be treated in the same manner as an accrued benefit under §3.1000 of this part.

(Authority: 38 U.S.C. 5310(;))

[48 FR 34471, July 29, 1983, as amended at 62 FR 35422, July 1, 1997; 64 FR 30392, June 8, 1999]

ALSO THE DIC FOR $1295 PER MONTH WAS APPROVED PER LETTER FROM VA TODAY, TOOK APPROX 45 DAYS TOTAL, APPROVED AS DEATH WAS SERVICE-RELATED, SO $2,000 BURIAL BENEFIT SHOULD ALSO BE APPROVED SHORTLY. THEY PAID DIC BEGINNING FROM JUNE 1ST, 2007, HE DIED ON MAY 28 2007, SO I AM FILING FOR THE MAY COMPENSATIOPN HECK FOR HER.

[free_spirit_etc]

Hey! Congrats on getting them to move on the claim that quickly!

The month of death payment seems so tangled up and more confusing than it needs to be. The widow can get it IF she is not entitled to DIC or pension FOR THAT MONTH. But if DIC isn't granted until the MONTH AFTER the death -- then the widow would, byt their very rules NOT get DIC for the month OF death.

So it seems like - as far as DIC is concerned - it should be simple.

The widow gets the Vets check for the MONTH of DEATH, as she is not entitled to DIC for the MONTH OF Death.

There is NO REASON to hold it up - wait for the ruling on the DIC claim, etc. If they know that DIC won't cover the MONTH of DEATH even if it is granted.

If the widow doesn't get DIC -- she is also entitled to the Month of Death payment of the Vet.

I am not sure about how it plays with the Pension. I haven;t checked it out much because it doesn't affect me (I am not eligible for Pension).

The vets organizations recommend sending a letter in stating that the widow is not eligible for pension (for whatever reason they aren't --to much income, resources, etc) and therefore you are requesting the month of death check be granted to her.

The rules I read in regard to DIC pretty much said IF the widow applied for the Month of Death check ALONE -- they send it.

IF she applied for DIC and / or Pension at the SAME time she applies for the month of death check - then she won't be granted the Month of Death payment due the Vet until the decision on DIC or Pension is made.

But if a widow isn't eligible for DIC until the Month AFTER death - I don't understand why they would need to take so long to decide if she is entitled to the month of death check.

Has it ever occured to them that the widow might need the funds at the TIME - not a year down the road?

I am sure it has.

The VA still has a hold on my husband's Month of Death payment in my bank account.

First I was told they couldn't release the funds because there was no evidence in the file that I was the widow.

I RESENT the info to them -for the THIRD time --

When I was at the VA last week - it had a note in the file that I WAS entitled to the payment for the month of death as his widow.

However, they still have not taken the funds from my bank account OR released the hold on them.

They just sit there - unavailable to me. (I consider them to be TAKEN when they became unavailable to me - regardless of whether they are still sitting in my bank account).

Anyway. I sent the VA an IRIS - and told them as it was noted in my husband's file that I was ENTITLED to the month of death payment that I would like them to either:

1. Release the hold on my funds in my bank account - or

2. Reclaim the funds and send me a check for the amount.

The IRIS reply told me that they could not do either until a decision is made on my DIC claim.

Ack!

Free

[jessejames]

The DIC claim has already been awarded effective the 1st day of June, he died on May 28th. We will file for the May's check based on 3 CFR 20 today. There is another story and we are working on it, but 5 days after she notified them of his death, she had a self adressed envelope from the VA with a letter demanding a personal check be sent within 30 days for the month of May's check. She sent it to them that day and the check cleared her Bank on June 16th. She had not thought to check her Bank Account before sending the check and when she did, the VA had already reversed payment on the May's check on June 5th.......they do work fast when you owe them. Anyway, thus far we have NOT been able to get them to re-imburse her for the check she sent....we are calling a GOOD veteran's aide in my Congressman's Office today.

[free_spirit_etc]

I remember reading about that -(I think - did you post it before - or is there a whole bunch of widows going through the same thing on had it right now?)

I saw where you said the DIC was awarded.

I am beginning to think the Month of Death Payments often just get lost in the shuffle.

Here is their guidelines for processing such claims:

Veterans Benefits Administration M21-1, Part IV

Department of Veterans Affairs Change 216 Erratum

Washington, DC 20420 April 26, 2005

Veterans Benefits Manual M21-1, Part IV, “Authorization Procedures,” is changed as follows:

Pages 26-I-5 through 26-I-8: Remove these pages and substitute pages 26-I-5 through 26-I-8 attached.

Paragraph 26.01j is modified to include two additional examples of cases requiring a determination as to a surviving spouse’s entitlement to a deceased veteran’s benefit or rate of payment for the month of death.

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

April 26, 2005 M21-1, Part IV

Change 216 Erratum

month of death as a claim for this benefit. This includes a request over the phone or written notification.

Authority 38 U.S.C. 5101.

(a) Requests over the phone must be recorded on VA Form 119, “Report of Contact” and the caller

must provide oral verification satisfactory to the veteran’s service representative that the caller is the surviving spouse.

( If there is any question as to the validity of the surviving spouse status, appropriate development should be undertaken.

(a) If a request for the veteran’s rate for the month of death is accompanied by VA Form 21-534,

“Application for Dependency and Indemnity Compensation, Death Pension, and Accrued Benefits,” a merit determination for death benefits will be made prior to awarding benefits under 38 CFR 3.20©.

(2) Use a locally generated letter to send one of two possible messages, depending on whether TINQ

(Treasury Inquiry) shows that the veteran’s check or direct deposit has been returned, either:

(a) We will re-issue payment to you; or

(B) Since you are entitled to the veteran’s payment for the month of death, you are not required to

return the check or direct deposit.

(3) In either instance, send the claims folder to Finance with the following notation on OF 41:

“Surviving spouse entitled to 1-time payment of [amount of monthly compensation or pension received by the veteran at time of death] per 38 CFR 3.209©.” If payment has been returned, request Finance to re-issue the payment to the surviving spouse (06A transaction). If payment has not been returned, notify Finance that the overpayment should be removed (08E transaction). Input of the 08E transaction must be accomplished within 45 days of the debt being established. The finance activity must notify the Debt Management Center (DMC) of the action so that they can stop the reclamation process. If the debt has been in the system for 60 days, DMC cannot stop the reclamation process when the finance activity inputs the 08E transaction.

Note: If a surviving spouse files a claim for Dependency and Indemnity Compensation (DIC) more than one year after the veteran’s death, or death pension more than 45 days after the veteran’s death and establishes entitlement, the claimant is still eligible for the veteran’s rate for the month of death under 38 CFR 3.20©.

Note 2: Payment as described under 38 CFR 3.20© should not be confused with payment of the veteran’s rate for the month of death under 38 CFR 3.20(:D. Under 38 CFR 3.20(B), payment should be made to the surviving spouse for the month of death on the original death award (see 36.01(a)).

(4) If, after payment under 38 CFR 3.20©, the surviving spouse subsequently becomes entitled to death

benefits from the date of the veteran’s death at a rate higher than the amount paid under 38 CFR 3.20©, an offset should be established (38 CFR 3.20(B) and 3.31). Create the offset for recovery of the veteran’s rate for the month of death prior to the original award of DIC or death pension.

(a) Withhold all benefits under Type 1 withholding from the date of entitlement. Suppress the

award letter. After the award showing total withholding has been authorized, route the claims folder to Finance for action to establish the offset. Deliver these folders to Finance daily.

(B) When the folder is returned from Finance, ensure the offset appears on the M01 screen. Process an amended award. Remove the withholding (show “0” entry under Type Withholding) and pay full benefits to which the surviving spouse is entitled.

j. Four Types of Cases Requiring a Determination as to a Surviving Spouse’s Entitlement to a Deceased Veteran’s Benefit or Rate of Payment for the Month of Death. If the veteran was in receipt of benefits at the time of

26-I-5

M21-1, Part IV April 26, 2005

Change 216 Erratum

death and a merit determination regarding the surviving spouse’s claim for improved death pension or Dependency and Indemnity Compensation (DIC) has been made, an additional determination must be made regarding the surviving spouse’s entitlement to the veteran’s benefit or rate of payment for the month of the veteran’s death.

(1) A surviving spouse’s entitlement to death benefits has been established. The claim was received more than one year after the veteran’s death. The surviving spouse is entitled to the veteran’s benefit for the month of death under 38 CFR 3.20©. Send OF 41 to Finance (see 26.01i(3)). The provisions of § 3.20(B) do not apply, since the surviving spouse was not entitled to death benefits for the month of the veteran’s death. Therefore, a comparison between the veteran’s rate of payment at the time of death and the surviving spouse’s rate of DIC/death pension is unnecessary.

(2) A surviving spouse’s entitlement to death benefits has been established. The claim was received within one year of the veteran’s death. The surviving spouse’s rate of payment is greater than the veteran’s rate for the month of death. Per 38 CFR 3.20(B), DIC may not be paid for the month in which the veteran died since the surviving spouse’s rate of DIC is greater. However, under the provisions of 38 CFR 3.20©, the surviving spouse is entitled to the benefit the veteran would have received that same month, but for his/her death.

(3) A surviving spouse’s entitlement to death benefits has been established. The claim was received within one year of the veteran’s death. The surviving spouse’s rate of payment is less than the veteran’s rate for the month of the veteran’s death. The surviving spouse is entitled to the veteran’s rate for the month of death under 38 CFR 3.20(B). Payment for the month of death is included in the original award to the surviving spouse.

(4) The surviving spouse’s entitlement to death benefits has been denied. The surviving spouse is entitled to the veteran’s benefit for the month of death under 38 CFR 3.20©(1). Send OF 41 to Finance (see 26.01i(3)).

The DIC claim has already been awarded effective the 1st day of June, he died on May 28th. We will file for the May's check based on 3 CFR 20 today. There is another story and we are working on it, but 5 days after she notified them of his death, she had a self adressed envelope from the VA with a letter demanding a personal check be sent within 30 days for the month of May's check. She sent it to them that day and the check cleared her Bank on June 16th. She had not thought to check her Bank Account before sending the check and when she did, the VA had already reversed payment on the May's check on June 5th.......they do work fast when you owe them. Anyway, thus far we have NOT been able to get them to re-imburse her for the check she sent....we are calling a GOOD veteran's aide in my Congressman's Office today.