--- title: "Part VI, Subpart iii, Chapter 3, Section C Authorizing and Notifying Claimants of a Decision on a Contested Claim" document: "M-21-1" section: "Part VI, Subpart iii, Chapter 3, Section C" canonical: "https://veteranai.co/va-regulations/m21-1/vi.iii.3.c-authorizing-and-notifying-claimants-of-a-decision-on-a" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179501/M21-1-Part-VI-Subpart-iii-Chapter-3-Section-C-Authorizing-and-Notifying-Claimants-of-a-Decision-on-a-Contested-Claim" updated: "2026-09-08T14:37:11.524397Z" --- March 9, 2026 ### VI.iii.3.C.1.a. When to Prepare an Administrative Decision Make an administrative decision after completely developing the facts associated with a contested claim. **Reference:** For more information on preparing an administrative decision, see [M21-1, Part X, Subpart v, 1.C.2](). ### VI.iii.3.C.1.b. Responsibility for Approving Administrative Decisions Veterans Service Center Managers and Pension Management Center Managers or their designated reviewers are responsible for approving all administrative decisions regarding a contested claim. ### VI.iii.3.C.1.c. Actions to Take When One Claimant Establishes Entitlement If one of the claimants in a contested claim establishes entitlement, * deny the claim of the other claimant(s), and * notify all claimants and other interested persons of the actions taken. **Note:** Attach [_VA Form 20-0998, Your Right to Seek Review of Our Decision_](), to the decision notice. 2. Deferring Award Action and Notifying Successful Claimants This topic contains information on * deferring award action on a contested claim, and * sending notice to a successful claimant. March 9, 2026 ### VI.iii.3.C.2.a. Deferring Award Action on a Contested Claim Defer award action for 60 days on a contested claim to allow an unsuccessful claimant an opportunity to initiate an appeal to the Board of Veterans’ Appeals (BVA), and to provide for due process procedures in cases of running awards. **Exception:** When an _apportionment_ claim is granted, release the apportioned benefits to the claimant without waiting for the 60-day appeal period to expire.**References:** For more information on * time limits for filing appeals to BVA in simultaneously contested claims, see [38 CFR 20.402](), and * processing apportionment claims, see [M21-1, Part VI, Subpart iv, 2.A-]()[D](). ### VI.iii.3.C.2.b. Sending Notice to a Successful Claimant Furnish notice containing the following paragraphs to the successful claimant in a contested claim._We have determined that you are entitled to_**[type of benefit]**_as the Veteran’s_**[relationship to the Veteran]**. **[relevant regulation(s)]**_We considered the following evidence in our decision: _**[evidence considered]**_.__We cannot release payments to you at this time because_**[name of other claimant]**_has also applied for this benefit and has the right to initiate an appeal by filing a notice of disagreement with our disallowance within 60 days from this date.__If notice of disagreement is not filed by_**[name of other claimant**]**_within 60 days, we will take appropriate award action. We will notify you if a notice of disagreement is filed_._The attached VA Form 20-0998 describes your right to appeal our decision._**Notes:** * Attach _[VA Form 20-0998]()_ to the decision notice. * BVA notifies the successful claimant if the unsuccessful claimant files a notice of disagreement. ## 3. Notifying Unsuccessful Claimants February 25, 2019 ### VI.iii.3.C.3.a. Notifying Unsuccessful Claimants Furnish a notice containing the following paragraphs to unsuccessful claimants in a contested claim._Your claim for_**[type of benefit]**_as the Veteran’s_**[relationship to the Veteran]**_has been denied because_**[reason(s) for the denial]**_. _**[relevant regulation(s)]**_We considered the following evidence in our decision: _**[evidence considered]**_.__We have determined that_**[name of successful claimant]**_is entitled to_**[type of benefit]**_. Payment will be withheld, however, for a period of 60 days from the date of this letter to provide you an opportunity to file a notice of disagreement with our decision.__The attached VA Form 20-0998 describes your right to appeal our decision._**Note:** Attach _[VA Form 20-0998]() _to the decision notice. ## 4. Actions to Take After Issuing Notice of a Decision on a Contested Claim This topic describes the actions to take after issuing notice of a decision on a contested claim, including * action to take if * an unsuccessful claimant fails to respond to the decision notice, and * the Department of Veterans Affairs (VA) is already paying benefits to a party in a contested claim, and * reducing or discontinuing a running award as a result of a contested claim. July 23, 2024 ### VI.iii.3.C.4.a. Action to Take if an Unsuccessful Claimant Fails to Respond to the Decision Notice If an unsuccessful claimant fails to submit a notice of disagreement within 60 days of the date of the notice described in M21-1, Part VI, Subpart iii, 3.C.3.a, pay benefits to the successful claimant. ### VI.iii.3.C.4.b. Action to Take if VA Is Already Paying Benefits to a Party in a Contested Claim In addition to the notices described in M21-1, Part VI, Subpart iii, 3.C.2 and 3, send notice of proposed adverse action to any current beneficiary whose benefits the Department of Veterans Affairs (VA) might adjust or discontinue as a result of a contested claim.If, within 30 days of the date of the notice of proposed adverse action, the beneficiary requests a personal hearing, VA may not make a final decision until it conducts the hearing or the beneficiary fails, without good cause, to appear.**Reference:** For more information about preparing a notice of proposed adverse action, see [M21-1, Part X, Subpart ii, 3.A](). ### VI.iii.3.C.4.c. Reducing or Discontinuing a Running Award as a Result of a Contested Claim If it becomes necessary to reduce or discontinue a running award based on the outcome of a contested claim, * reduce or discontinue the award effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in the Veterans Benefits Management System (VBMS), per [38 CFR 3.500(f)](), and * award benefits to the successful claimant effective the date of entitlement. Follow the instructions in [38 CFR 3.657]() if the outcome of a contested claim results in the reduction or discontinuation of a running award to an individual (as a Veteran’s surviving spouse) because another individual has been established as the legal surviving spouse of the same Veteran._**References**_ : For more information on * awarding benefits in a contested claim involving a deemed-valid marriage, see [VAOPGCPREC 1-1996](), and * stopping an award as a result of a contested claim, see the _VBMS Awards User Guide_. ## 5. Effect of an Insurance Interpleader on Death Claims July 5, 2015 ### VI.iii.3.C.5.a. Effect of an Insurance Interpleader on Death Claims If there is a dispute about the person(s) entitled to the payment of insurance benefits, refer the matter to Office of General Counsel (OGC). OGC may file suit in the nature of a bill of interpleader action, which may be brought by VA in the name of the United States against all persons having, or claiming to have, any interest in the insurance, in order to determine the rights of the parties to the insurance proceeds.**Note:** If an insurance matter has been submitted to OGC for a bill of interpleader, do not, as a general rule, delay a final determination on a claim for Survivors Pension, compensation, Dependency and Indemnity Compensation, or accrued benefits pending the outcome of the submission to OGC.