This bill establishes procedures for the Department of Veterans Affairs (VA) to issue a pension that was due but unpaid at the time of a veteran’s death. Specifically, if the VA issues a decision awarding entitlement to a pension to a veteran prior to the veteran’s death but issues the payment after the veteran dies, the pension must be paid to the first available recipient on the following list: (1) the veteran’s living spouse; (2) the veteran’s living children; (3) the veteran’s living dependent parents; or (4) the estate of the veteran, unless the estate will escheat (i.e., transfer to the state). To be eligible for such pension payments, a claimant of accrued benefits must file an application within one year after the veteran's death.
If no application for accrued benefits is filed within one year following the death of the veteran, the pension must be paid to the veteran’s estate unless the estate will escheat.