What Is Accrued Benefits
Accrued benefits are unpaid VA monthly payments owed to a veteran at the time of death. The VA calculates this amount from the effective date of the award through the last day of the month in which the veteran died. The VA then pays this lump sum to eligible survivors, typically the veteran's spouse or children.
This is distinct from ongoing survivor benefits like DIC or Survivors Pension, which continue monthly after the veteran's death. Accrued benefits are a one-time payment covering only the period through death.
How Accrued Benefits Are Calculated
The VA pays accrued benefits based on the veteran's rating at death. If a veteran had a 70% disability rating and received $3,737.85 monthly (the approximate 2024 rate for that level), and died on March 15th, the survivor would receive payment through March 31st. The exact amount depends on which day of the month the veteran died.
The payment order follows federal law. The surviving spouse receives the full accrued amount if there are no dependent children. If there are children under age 18 (or 23 if enrolled full-time in school), the payment is divided proportionally among the spouse and children.
Key Details About Accrued Benefits
- Timing matters: Only benefits earned through the date of death are included. Future month payments are not accrued.
- Rating changes: If the veteran had a pending rating increase when they died, accrued benefits reflect only the rating in effect at time of death, not the increase being appealed.
- No secondary claims: Survivors cannot file new disability claims based on accrued benefits. The payment is calculated on what the veteran already received.
- Tax treatment: Accrued benefits are non-taxable income, just like monthly disability payments.
- Processing time: The VA typically processes accrued benefit payments within 60 to 120 days after receiving notice of death, though it can take longer if dependent eligibility is unclear.
- VSO assistance: A Veterans Service Officer can help survivors file VA Form 21-0779 (Claim for Accrued Benefits) and ensure dependents are properly documented.
Accrued Benefits vs. Ongoing Survivor Benefits
Accrued benefits are a one-time lump sum. Survivors who qualify for DIC receive ongoing monthly payments, currently $1,747.34 per month for a surviving spouse (2024 rates). Similarly, Survivors Pension provides ongoing monthly income based on need. A survivor may receive accrued benefits plus qualify for ongoing benefits, but these are separate payment streams.
Common Questions
- Can I receive accrued benefits if I already get survivor benefits? Yes. Accrued benefits are paid as a one-time lump sum regardless of whether you receive DIC or Survivors Pension monthly. They cover only the period through the veteran's death.
- What if the veteran was appealing a rating increase when they died? Only the rating in effect at death determines accrued benefits. A successful appeal after the veteran's death does not increase accrued amounts owed, though it may affect eligibility for ongoing survivor benefits.
- How do I claim accrued benefits? File VA Form 21-0779 with the VA Regional Office that handled the veteran's claim. Provide a death certificate and documentation of dependent relationships. A VSO can assist with completion.
Related Concepts
- DIC , the monthly survivor benefit for spouses and children
- Survivors Pension , need-based ongoing income for survivors