Part VI, Subpart iv, Chapter 2, Section CApportionment Maintenance and Adjustment

death of the primary beneficiary

M21-1, Part VI, Subpart iv, 2.C.3.a.

death of the apportionee

• M21-1, Part VI, Subpart iv, 2.C.3
• M21-1, Part VII, Subpart i, 1.C.4
• 38 CFR 3.1000(b)(1), and
• 38 CFR 3.500(g).

divorce (or annulment of marriage) of the spouse-apportionee

• M21-1, Part VI, Subpart iv, 2.C.2
• M21-1, Part VII, Subpart i, 1.C.4, and
• 38 CFR 3.501(d).

incarceration of the apportionee

M21-1, Part VI, Subpart iv, 1.B.6.

discontinuation of a child-apportionee's entitlement

• M21-1, Part VII, Subpart i, 1.C.4
• M21-1, Part VI, Subpart iv, 2.C.4 or 6, and
• M21-1, Part VI, Subpart iv, 2.D.3.

marriage of a child-apportionee

• M21-1, Part VII, Subpart i, 1.C.4.g
• M21-1, Part VI, Subpart iv, 2.C.6
• M21-1, Part VI, Subpart iv, 2.D.3, and
• 38 CFR 3.500(n).

discontinuation of a child-apportionee's school attendance

• M21-1, Part VI, Subpart iv, 2.C.6
  • M21-1, Part VI, Subpart iv, 2.D.3, and
  • 38 CFR 3.667(c).

election of

• Dependents’ Educational Assistance, or

• education benefits under 38 U.S.C. 3311 (Fry Scholarship)

• M21-1, Part VI, Subpart iv, 2.A.1.g

• M21-1, Part VII, Subpart ii, 1.B.2 and 3

• 38 U.S.C 3322(f), and

• 38 CFR 21.3023(a).

cessation of the dependency of a parent

• M21-1, Part VII, Subpart i, 4.B.7, and
• 38 CFR 3.660(a)(2).

residency of the apportionee with the primary beneficiary (for legacy apportionments only)

M21-1, Part VI, Subpart iv, 2.D.3.c.

unknown whereabouts of the apportionee

• M21-1, Part VI, Subpart iv, 2.C.1.g, and

• 38 CFR 3.500(t).

• unknown whereabouts of a primary beneficiary that resides in a Treasury Department-listed country, or

• apportionee’s residence in a Treasury Department-listed country

M21-1, Part X, Subpart i, 3.B.

commencement of a primary beneficiary’s payment of child support for a child-apportionee (for legacy apportionments only)

M21-1, Part VI, Subpart iv, 2.D.3.g and h.

surviving child’s election to receive benefits in a two Veteran-parent case

M21-1, Part VII, Subpart i, 3.D.

surviving spouse’s

• loss of entitlement to Section 306 or Old-Law Pension, or
• election of current-law survivors pension over Section 306 or Old-Law Pension

M21-1, Part IX, Subpart iii, 2.C.

surviving spouse’s remarriage

M21-1, Part VII, Subpart i, 2.E.4.

incarceration of the surviving spouse, who has been receiving pension

M21-1, Part VI, Subpart iv, 1.B.2.g-i.

primary beneficiary

only the primary beneficiary’s status has changed Example: A Veteran reports income that exceeds the maximum annual pension rate.

• adjust the awards of the primary beneficiary and apportionee(s), and
• provide contemporaneous notice of the action taken to both parties.

primary beneficiary

the apportionee’s status has reportedly changed

remove the apportionee from the primary beneficiary’s award but do not discontinue the apportionment without

• sending a notice of proposed adverse action to the apportionee, and
• allowing the apportionee 65 days to respond.

apportionee

the overall effect of discontinuing the apportionment and removing the apportionee from the primary beneficiary’s award will reduce the primary beneficiary’s award

• discontinue the apportionment
• send a notice of proposed adverse action to the primary beneficiary, and
• adjust or discontinue (whichever applies) the primary beneficiary’s award after giving 65 days to respond.

apportionee

the overall effect of discontinuing the apportionment and removing the apportionee from the primary beneficiary’s award will increase the primary beneficiary’s award

• discontinue the apportionment, and
  • provide contemporaneous notice of the action taken to both parties.

Note: The requirements of 38 CFR 3.31 do not apply to the “increase” referenced in this row.

a third party

only the primary beneficiary’s status has reportedly changed

• send a notice of proposed adverse action to the primary beneficiary
• send a letter to the apportionee(s) explaining that the Department of Veterans Affairs (VA) may
  • reduce or discontinue the primary beneficiary’s award on a given date, and
  • make corresponding adjustments to the apportionee award(s), and
• adjust the awards to the primary beneficiary and apportionee(s), if necessary, after giving the primary beneficiary 65 days to respond.

a third party

the apportionee’s status has reportedly changed

• send a notice of proposed adverse action to the apportionee
• send a notice of proposed adverse action to the primary beneficiary only if the overall effect of discontinuing the apportionment and removing the apportionee from the primary beneficiary’s award will reduce the primary beneficiary’s award, and
• adjust the awards to the primary beneficiary and apportionee(s), if necessary, after giving them 65 days to respond.

Will the combined effect of removing the dependent and discontinuing the apportionment decrease the benefits payable to the beneficiary?

• If yes , go to Step 3.
• If no , go to the next step.

• Remove the dependent from the beneficiary’s award (without issuing a notice of proposed adverse action) effective the date VA last paid the beneficiary (the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS).
  • Disregard the remaining steps in this table.

Note: Take the actions described in this step concurrent with actions to discontinue the apportionment to the dependent.

Establish an end product (EP) 600, using the current date as the date of claim.

Prepare a notice of proposed adverse action. In the notice,

• inform the beneficiary that VA must remove the dependent from the award because the dependent’s whereabouts are unknown, and
  • ask the beneficiary to provide to VA
    • the dependent’s current address (physical or mailing), or
    • evidence that the beneficiary is contributing to the dependent’s support.

Reference: For more information on issuing a notice of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.

Did the beneficiary respond to the notice of proposed adverse action within 65 days?

• If yes , go to Step 8.
  • If no , go to the next step.

Note: If the beneficiary requests a hearing in response to the notice of proposed adverse action, follow the instructions in M21-1, Part X, Subpart ii, 3.B.3.

Remove the dependent from the beneficiary’s award (under the pending EP 600) effective the date VA last paid the beneficiary (the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS).Note : Take the actions described in this step concurrent with actions to discontinue the apportionment to the dependent.

• Notify the beneficiary of the action taken.
• Disregard the remaining steps in this table.

Did the beneficiary provide the dependent’s current address or evidence that the beneficiary is contributing to the dependent’s support?

• If yes , go to the next step.
• If no , return to Step 6.

Notify the beneficiary that VA will not remove the dependent from the award. Notes:

• If the beneficiary provides the dependent’s current address, do not resume the apportionment without a request for resumption from the apportionee.
• Follow the instructions in M21-1, Part VI, Subpart iv, 2.C.1.i, following receipt of a request for resumption of the apportionment.

Clear the pending EP 600.

VA has not yet discontinued the apportionment (it is still in suspense)

resume the apportionment under EP 130 and release to the apportionee any proceeds in the account.

VA has discontinued the apportionment

• ask the apportionee to complete a new VA Form 21-0788, Information Regarding Apportionment of Beneficiary’s Award , (unless the apportionee submitted the form with the request), and
• consider any subsequently claimed apportionment in accordance with the regulations currently in effect.

Is documentary evidence of the divorce/annulment of record?

• If yes ,
  • disregard the remaining steps in this table, and
  • follow the instructions in M21-1, Part VI, Subpart iv, 2.C.2.e.
• If no , go to the next step.

Ask the Veteran to provide documentary evidence of the divorce/annulment. Allow the Veteran 30 days to provide the evidence.

Did the Veteran provide documentary evidence of the divorce/annulment within 30 days?

• If yes ,
  • disregard the remaining steps in this table, and
  • follow the instructions in M21-1, Part VI, Subpart iv, 2.C.2.e.
• If no , go to the next step.

Request a certified copy of documentary evidence of the divorce/annulment from the custodian of vital records in the state where the divorce/annulment reportedly took place. Reference: For addresses of where to send requests for vital records, see M21-1, Part III, Subpart i, 2.A.1.e.

• If the custodian is unable to locate the requested evidence, go to the next step.
• If the custodian provides the requested evidence,
  • disregard the remaining step in this table, and
  • follow the instructions in M21-1, Part VI, Subpart iv, 2.C.2.e.

• Notify the spouse-apportionee that apportionment of the Veteran’s benefits will continue.
• If the Veteran reported the divorce/annulment,
  • notify the Veteran that without documentary evidence of the divorce/annulment, VA must continue paying the apportionment, and
  • do not add the spouse back onto the Veteran’s award unless and until the Veteran asks VA to do so by submitting one of the forms listed in the bottom row of the table in M21-1, Part II, Subpart iii, 1.A.1.a.

Ask the primary beneficiary to provide a death certificate. Allow 30 days to respond.

Did the primary beneficiary provide a death certificate within the 30-day response period?

• If yes , go to Step 14.
• If no , go to the next step.

Request a certified copy of the death certificate from the custodian of vital records in the State where the apportionee reportedly died. Reference: For addresses of where to send requests for vital records, see M21-1, Part III, Subpart i, 2.A.1.e.

• If the custodian is unable to locate a death certificate, go to the next step.
  • If the custodian provides the death certificate, go to Step 14.

• Notify the primary beneficiary that without a death certificate, VA must continue the apportionment.
  • Disregard the remaining steps in this table.

Note: Do not add the apportionee back onto the primary beneficiary’s award unless and until the primary beneficiary asks VA to do so by submitting one of the forms listed in the bottom row of the table in M21-1, Part II, Subpart iii, 1.A.1.a.

Send a notice of proposed adverse action to the primary beneficiary that

• proposes to remove the apportionee from the award effective the first day following the month of death, and
• asks the primary beneficiary to provide a death certificate (if one is not already of record).

Did the primary beneficiary respond within 65 days of the date of the notice of proposed adverse action by stating the apportionee is still alive?

• If yes , go to the next step.
• If no ,
  • remove the deceased apportionee from the primary beneficiary’s award effective the first day following the month of death, and
  • return to Step 2.

Does the evidence of record include a death certificate for the apportionee?

• If yes , go to Step 13.
• If no ,
  • request a certified copy of the death certificate from the custodian of vital records in the state where the apportionee reportedly died, and
  • go to the next step.

Reference: For addresses of where to send requests for vital records, see M21-1, Part III, Subpart i, 2.A.1.e.

• If the custodian is unable to locate a death certificate, go to the next step.
  • If the custodian provides the death certificate, go to Step 13.

• Notify the primary beneficiary that VA will neither remove the apportionee from the beneficiary’s award nor discontinue the apportionment.
  • Disregard the remaining steps in this table.

Remove the deceased apportionee from the primary beneficiary’s award effective the first day following the month of death.

Is the award to the deceased apportionee still running?

• If yes , discontinue the deceased apportionee’s award effective the first day of the month of death.
• If no (including suspended awards), ensure the deceased apportionee’s award was discontinued effective the earlier of the following:
  • date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, or
  • first day of the month of death.

Reference: For more information on discontinuing an apportionee’s award, see the VBMS Awards User Guide.

Were other apportionees receiving an apportionment under the same award as the deceased apportionee?

Establish EP 130 under the primary beneficiary’s name.

Is additional evidence required to confirm the child-apportionee cannot be recognized as a child for VA purposes?

• If yes , go to the next step.
  • If no , go to Step 4.

Examples:

• Additional evidence might be required if the only evidence of record is a statement from a male Veteran that he did not father a child-apportionee.
• Additional evidence might not be required if the evidence of record includes the results of a paternity test.

Concurrent with the actions described in the next two steps , request additional evidence from the primary beneficiary.

Establish EP 600 under the child-apportionee’s name.

• Send the child-apportionee or the child-apportionee’s custodian (whichever applies) notice of VA’s proposal to discontinue the child’s apportionment effective the first of the month following the month in which the due process period ends. (The due process period ends 60 days following the date of the notice.)
• After 65 days (from the date of the notice) have passed, proceed to the next step.

Based on the evidence of record, may VA recognize the child-apportionee as a Veteran’s child under 38 CFR 3.57?

• If yes , go to the next step.
• If no , go to Step 9.

• Notify the primary beneficiary and the child-apportionee or child-apportionee’s custodian (whichever applies) that VA will not discontinue the apportionment.
• Notify the primary beneficiary that the child-apportionee will remain on the award.

• Clear the EP 130 and EP 600.
• Disregard the remaining steps in this table.

Establish an EP 130 under the apportionee’s name to discontinue the child-apportionee’s award by adding an entry in the ALLOTMENTS screen, effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.

Remove the child-apportionee from the primary beneficiary’s award by editing the DEPENDENCY screen under the EP 130 for the primary beneficiary, effective the same date the apportionment was discontinued.

• Notify the primary beneficiary and the child apportionee or child apportionee’s custodian (whichever applies) of the actions taken.
• Clear the EP 600.

Establish EP 130 under the child-apportionee’s name.

Is additional evidence required to confirm the child apportionee cannot be recognized as a child for VA purposes?

• If yes , go to the next step.
  • If no , go to Step 4.

Examples:

• Additional evidence might be required if the only evidence of record is a statement from the child-apportionee’s custodian, such as the one referenced in the example that precedes this table.
• Additional evidence might not be required if the evidence of record includes the results of a paternity test.

Concurrent with the action described in the next step , request additional evidence from the child-apportionee or the child-apportionee’s custodian (whichever applies).

Discontinue the child-apportionee’s award under the EP 130, effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.

Notify the child-apportionee or the child-apportionee’s custodian (whichever applies) of the action taken.

Establish EP 600 under the primary beneficiary’s name.

• Send the primary beneficiary notice of VA’s proposal to remove the child from the primary beneficiary’s award effective the same date the child-apportionee’s award was discontinued.
• Once 65 days (from the date of the notice) have passed, go to the next step.

Based on the evidence of record, may VA recognize the child-apportionee as a Veteran’s child under 38 CFR 3.57?

• If yes ,
  • leave the child on the primary beneficiary’s award, and
  • go to the next step.
• If no , go to Step 13.

Establish EP 130 under the child-apportionee’s name.

If the qualifications for apportionment exist under the regulations in effect at the time, resume payment of the apportionment under EP 130 from the date it was discontinued in Step 4.

• Notify the primary beneficiary and the child apportionee or child apportionee’s custodian (whichever applies) of the resumption of the apportionment.
• Notify the primary beneficiary that the child-apportionee will remain on the award.

• Clear the EP 600.
• Disregard the remaining steps in this table.

Remove the child from the primary beneficiary’s award under EP 600, effective the same date the child-apportionee’s award was discontinued.

Notify the primary beneficiary of the action taken.

• dies, and

  • is the only apportionee

  • discontinue the apportionment effective the first day of the month of death, per 38 CFR 3.500(g)(1), and

  • remove the child from the primary beneficiary’s award effective the first day of the month following death, per 38 CFR 3.500(g)(2)(ii).

  • marries, and

  • is the only apportionee

  • discontinue the apportionment effective the first day of the month of marriage, per 38 CFR 3.500(n)(1), and

  • remove the child from the primary beneficiary’s award effective the first day of the month following marriage, per 38 CFR 3.500(n)(2)(ii).

  • is given up for adoption, and

  • is the only apportionee

  • discontinue the apportionment effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, per 38 CFR 3.500(d)(1), and

  • follow the instructions in M21-1, Part VII, Subpart i, 3.B.5.a, for removing the child from the Veteran’s award.

Note: The instructions in this cell are applicable to all adoptions that occur on or after February 9, 2026. Historically, 38 CFR 3.210(c)(1)(ii) allowed for the payment of apportionment for certain situations of children adopted out of the family of Veterans in receipt of Veterans Pension.

• stops attending school, and
• is the only apportionee

discontinue the apportionment and remove the child from the primary beneficiary’s award effective the first day of the month following the date school attendance ended, per 38 CFR 3.667(c). Note: If an award has been made covering a vacation period, and the child fails to return to school at the end of that period, the effective date for the adjustments described above is the earlier of the following dates, per 38 CFR 3.667(b):

• date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, or

• first day of the month following the month the child was scheduled to return to school.

• marries, dies, or stops attending school, and

• is included as a dependent on a spouse-apportionee’s award

reduce the spouse-apportionee’s award effective the first day of the month following

• marriage under 38 CFR 3.500(n)(2)(ii)

• death under 38 CFR 3.500(g)(2)(ii), or

• the date the child stopped attending school under 38 CFR 3.667(b) or (c).

• is given up for adoption, and

• is included as a dependent on a spouse-apportionee’s award

reduce the spouse-apportionee’s award effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, per 38 CFR 3.500(d)(1).

1

Is the apportionee a former school child that lost status as a dependent because school attendance terminated?

• If yes , go to the next step.
• If no , go to Step 4.

2

Update the ALLOTMENT DECISION screen to discontinue the apportionment to the apportionee. Note: Use the same effective date in this step as that used in the next step.

3

• Complete the fields on the DEPENDENCY DECISION screen to remove the apportionee from the primary beneficiary’s award.
  • Go to Step 6.

Note: Follow the instructions in M21-1, Part VII, Subpart ii, 1.B.4.c, for choosing an effective date.

4

Update the ALLOTMENT DECISION screen to discontinue the apportionment to the apportionee that lost status as a dependent effective the first day of the month during which the event occurred that caused the apportionee to lose status.

5

Complete the fields on the DEPENDENCY DECISION screen to remove the apportionee from the primary beneficiary’s award. Note: Follow the instructions in M21-1, Part VII, Subpart i, 1.C.4.b.and c for selecting an effective date.

6

Use the table below to determine whether to adjust the remaining apportionee award(s). If the remaining apportionment was granted ... Then ...

as a legacy apportionment

the remaining apportionment(s) continue unchanged.

under the new regulatory guidance

• reallocate the benefits not otherwise payable to the primary beneficiary during incarceration or hospitalization, when warranted, to the remaining apportionees equally, and
• go to Step 7.

7

Update the ALLOTMENT DECISION screen with the new amount(s) allotted to the remaining apportionee(s).

8

• Generate an award and route for authorization.
• Notify the primary beneficiary and the apportionee(s) of the actions taken.