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M21-1, Part IV, Subpart iii, Chapter 3, Section C – Awarding Dependency and Indemnity Compensation (DIC) to Children Based on the Determination of a Surviving Spouse’s Entitlement

Overview


In This Section

This section contains the following topics:

Topic
Topic Name
1
2

 

1.  Paying DIC to a Child(ren) When the Surviving Spouse’s DIC Award Is Pending


Introduction

This topic contains general information on paying DIC to a child(ren) when the surviving spouse’s award is pending, including

Change Date

August 6, 2018

IV.iii.3.C.1.aAwarding DIC Benefits to a Child(ren) Before a Determination of a Surviving Spouse’s Entitlement 

If determination of a surviving spouse’s DIC entitlement will be unduly delayed in a claim involving children, award DIC benefits to  the child or children if and when entitlement can be established.
Reference:  For more information about rates, see the current DIC rate charts.

IV.iii.3.C.1.b.  Benefits When All Children Are in the Custody of the Surviving Spouse

If all children are in the custody of the surviving spouse
  • award the benefits to the surviving spouse claimant under payee 11 as custodian under 38 CFR 3.850(c), and
  • make the payment at the children-only rates.
Reference:  For more information on the recognition of a custodian under 38 CFR 3.850(c), see M21-1, Part III, Subpart v, 9.C.5.

IV.iii.3.C.1.c.  Benefits for a Child(ren) Not in Custody of the Surviving Spouse

An apportionment is required if one or more of the children leaves the custody of the surviving spouse before a final determination is made as to the surviving spouse’s entitlement.
  • note on the form
    • any awards to children will be made pending a  DIC determination of the surviving spouse’s entitlement, and
    • benefits awarded may be subject to adjustment, and
  • determine the rate payable from the apportionment schedule for children as if the surviving spouse were entitled.

IV.iii.3.C.1.d.  Example: Apportioning an Award Due When not all Children Are in the Surviving Spouse’s Custody

Situation:
  • The Veteran died on April 15, 1998.
  • The surviving spouse’s entitlement is pending.
  • One child is in the custody of the surviving spouse.
  • Two children are not in the custody of the surviving spouse.
Result:  Pay each child separately under payee 12 and payee 13 awards.

2.  Surviving Spouse’s DIC Entitlement and a Child(ren)’s DIC Award


Introduction


Change Date
August 6, 2018

IV.iii.3.C.2.a.  Action to Take When the Surviving Spouse Fails to Provide Evidence to Establish Entitlement to DIC

If the surviving spouse fails to provide evidence to establish entitlement to DIC, take action to
  • pay child(ren)-only rates
  • correct the dependency codes
  • establish a future diary code under reason code 30 for receipt of the evidence required to establish entitlement within one year of the date requested
  • annotate the award that a diary code has been established and the reason, and
  • use a locally-generated letter to notify the surviving spouse of the decision.

IV.iii.3.C.2.b.  Action to Take When a Surviving Spouse’s Claim Is Denied

If the surviving spouse’s claim is denied
  • prepare a denial and include notice of
    • reasons his/her claim could not be granted
    • action taken on the child(ren)’s claim for entitlement, and
    • awards to, or for, the child(ren), and
  • take appropriate action on the child(ren)’s awards as described in the block below.

IV.iii.3.C.2.c.  Adjusting a Child(ren)’s Awards When a Surviving Spouse’s Claim Is Denied

Use the table below to determine the action to take on the child(ren)’s awards when a surviving spouse’s claim is denied.
If all child(ren) is/are …
Then …
in the custody of the surviving spouse
take no action to adjust the child(ren)’s award.
  • not in the custody of the surviving spouse, or
  • both in and out of the custody of the surviving spouse
  • take action as of the date of entitlement to authorize payment at the child(ren)-only rate with appropriate withholding through the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share, when the award will be adjusted to zero out the withholding, and
  • change the dependency codes to show the codes for a child(ren)-only award.

IV.iii.3.C.2.d.  Action to When a Surviving Spouse Establishes Entitlement

Use the table below to determine the action to take if
  • an award has been made for a child(ren), and
  • the surviving spouse’s entitlement is subsequently established.
If …
Then …
a child(ren) is/are in the surviving spouse’s custody
  • terminate the child(ren)’s awards as of the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share
  • pay the available balance under a payee 10 award, and
  • adjust the payee 10 award the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share to remove the withholding.
no child(ren) is/are in the custody of the surviving spouse
  • take no action on the child(ren)’s awards, and
  • prepare a payee 10 award with proper withholding for the child(ren) out of custody.
there is a child(ren) both in and out of custody of the surviving spouse
  • take no action on the award for the child(ren) out of custody
  • terminate the award for the child(ren) in custody as of the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share, and
  • prepare a payee 10 award from the date of entitlement, with appropriate withholding for prior payments adjusted as of the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share.
Historical_M21-1IV_iii_3_SecE_03-10-2015.doc May 21, 2019 62 KB
Transmittal-Sheet-04_13_09.doc May 21, 2019 61 KB
8-6-18_Key-Changes_M21-1IV_iii_3_SecC.docx May 21, 2019 41 KB
Change-July-12-2015-Transmittal-Sheet-M21-1MRIV_iii_3_SecENewC_TS.doc May 21, 2019 61 KB
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