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Part VII, Subpart i, Chapter 4, Section BEstablishing Parental Dependency

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Revised December 16, 2020

VII.i.4.B.1.aDefinition: Members of the Family

The term members of the family , for purposes of determining conclusive dependency in domestic cases, and for determining factual dependency in foreign and domestic cases, includes relatives

  • under age 21 who are supported by a parent under legal or moral obligation, and
  • over age 21 who are dependent on the parent because of physical or mental incapacity.

VII.i.4.B.1.bConsideration of Parental Relationship and Dependency

The issue of whether or not a Veteran’s parent is dependent is distinct from the issue of whether or not the parental relationship may be established.Disability and Death Compensation: Both the parental relationship and dependency of the parent must be established in order for the Department of Veterans Affairs (VA) to pay additional disability compensation for a parent or pay death compensation to a parent.Parents’ Dependency and Indemnity Compensation (DIC): Dependency is not an issue in Parents’ DIC claims, although entitlement to Parents’ DIC, as well as the rate that is payable, are both determined by the parents’ income for VA purposes.References: For more information on

VII.i.4.B.1.cEffective Date of Parental Dependency

It is not material whether the parent’s dependency arose before or after the Veteran’s death. The relevant question is whether or not the parent is dependent on the date of entitlement to benefits.

VII.i.4.B.1.dHow Marriage Affects Parental Dependency

A parent’s marriage has no bearing on the parent’s dependency, except to the extent that it changes the

  • parent’s financial situation, and
  • income limit for conclusive dependency.

References: For more information on

  • conclusive dependency, see M21-1, Part VII, Subpart i, 4.B.2, and
  • obtaining evidence pertaining to the marriage of a parent, see M21-1, Part VII, Subpart i, 4.B.1.g.

VII.i.4.B.1.eInitial Development to Determine Parental Dependency

If taking initial development action to determine the dependency of a parent, send the claimant VA Form 21P-509, Statement of Dependency of Parent(s).Exception: Do not send VA Form 21P-509 to a Veteran if the form used to claim additional disability compensation for a parent(s) is a September 2018 or later version of VA Form 21-686c, Application Request to Add and/or Remove Dependents. Such versions of the form specifically instruct Veterans to complete and submit VA Form 21P-509 with their claim. VA Form 21P-509

  • is also used to determine continued dependency if evidence is received that a dependent parent has married, and
  • may be mailed to the claimant by using the appropriate development letter.

Reference: For more information on a Veteran’s failure to submit a form that a September 2018 or later version of VA Form 21-686c specifically instructs the Veteran to provide with the claim, see M21-1, Part VII, Subpart i, 1.A.4.e.

VII.i.4.B.1.fAction to Take if Additional Information Is Required

If additional information is required to determine the dependency of a parent, develop by:

Exception: Do not take the actions described in this block if

  • a Veteran submits a claim for additional disability compensation for a parent using a September 2018 or later version of VA Form 21-686c, and
  • the “additional information” referenced in this block is information the VA Form 21-686c specifically asks the Veteran to provide.

Reference: For more information on September 2018 or later versions of VA Form 21-686c that are incomplete, see M21-1, Part VII, Subpart i, 1.A.4.e.

VII.i.4.B.1.gObtaining Evidence Pertaining to a Parent’s Marriage

If evidence is received showing a dependent parent has married, advise the beneficiary that VA Form 21P-509 must be completed to establish that continued dependency exists.If the beneficiary fails to respond to VA Form 21P-509, furnish a notice of proposed adverse action under 38 CFR 3.652.Reference: For more information on conclusive dependency, see M21-1, Part VII, Subpart i, 4.B.2.

VII.i.4.B.1.hEstablishing Dependency in Domestic and Foreign Cases

The table below shows when dependency may be established in domestic and foreign cases.

If the case is a …Then dependency may be established …
domestic case
  • when conclusive dependency is established, or
  • on a factual basis, if conclusive dependency cannot be established.
foreign case

on a factual basis only.Note: Conclusive dependency does not apply in foreign cases.

References: For more information on

  • conclusive dependency, see M21-1, Part VII, Subpart i, 4.B.2, and

  • factual dependency, see M21-1, Part VII, Subpart i, 4.B.3.

2Conclusive Dependency of a Parent – Domestic Cases Only

This topic contains information on conclusive dependency in domestic cases, including

  • income limits for parental dependency
  • effect of additional family members on income limits
  • income considerations for additional family members, and
  • effect of net worth on parental dependency.

Revised October 11, 2010

VII.i.4.B.2.aIncome Limits for Parental Dependency

Conclusive dependency of a parent, other than a parent who resides in a foreign country, exists when the monthly income of the parent(s) does not exceed

  • $400 for a mother or father living alone, or
  • $660 for a
    • mother and father, or
    • remarried parent and spouse living together.

Reference: For more information on the income limits for a parent and a parent’s spouse, see 38 CFR 3.250.

VII.i.4.B.2.bEffect of Additional Family Members on Income Limits

Add $185 to the conclusive dependency income limit for each additional member of the family who the parent is under a legal or moral obligation to support.

VII.i.4.B.2.cIncome Considerations for Additional Family Members

If $185 is added to the conclusive dependency income limit for an additional member of the family,

  • consider any income of the family member that is available to the parent for support of the family member, and
  • do not consider the family member’s net worth unless it is actually available to the parent.

VII.i.4.B.2.dEffect of Net Worth on Parental Dependency

If family income is within the income limits specified under 38 CFR 3.250, net worth is not a factor.If, however, the claimant reports substantial net worth, determine whether

  • the assets are the type that should be generating interest or dividends, and
  • all interest and dividends were reported.

3Factual Dependency–Foreign Cases and Domestic Cases

This topic contains information on factual dependency in foreign and domestic cases, including

  • standard to determine factual dependency
  • net worth considerations, and
  • dependency of one of two parents not established.

Revised October 11, 2010

VII.i.4.B.3.aStandard to Determine Factual Dependency

In all foreign cases and in those domestic cases where income exceeds the limits for conclusive dependency under 38 CFR 3.250, use the following standard to determine whether factual dependency exists: Does the parent have sufficient income and/or net worth to provide reasonable maintenance for self and for members of the family? If the answer is no , dependency exists.Note: There are no hard and fast rules for determining whether factual dependency exists. This is a discretionary determination that is made by development and/or authorization activity.

VII.i.4.B.3.bNet Worth Considerations

If conclusive dependency cannot be established, net worth must be considered. Evaluate a parent’s net worth separately even if the parents are living together.The table below describes considerations with regard to

  • net worth and
  • establishing factual dependency.
If …Then …

it is reasonable to expect the parent’s net worth may be consumed for the parent’s maintenance

deny factual dependency.

  • one parent is not considered dependent because of excessive net worth, and
  • the assets are
    • one parent’s separate property, and
    • not joint or community property

it is possible for one parent to be found dependent and the other not dependent, even though they live together in the same household.Note: Attribute half of all joint or community property to each parent.Reference: For more information, see M21-1, Part VII, Subpart i, 4.B.3.c.

  • a parent marries someone who is not the Veteran’s other parent, or
  • two parents live together but only one files for death compensation

only consider

  • the claimant’s individual net worth, and
  • half of any joint or community property.

Reference: For more information, see 38 CFR 3.263.

VII.i.4.B.3.cDependency of One of Two Parents Not Established

If one parent’s claim is denied because of non-dependency, but the other parent’s claim is awarded, the successful claimant is entitled to the single parent rate.

4Administrative Decisions–Dependency Determinations

Revised August 14, 2006

VII.i.4.B.4.aAdministrative Decisions

Use the table below to determine the appropriate actions to take when

  • factual dependency exists, or
  • dependency cannot be established.
If …Then …
  • factual, as opposed to conclusive, dependency exists, and
  • a parent’s estate is $80,000 or more

complete VA Form 21-5427, Corpus of Estate Determination.

a decision is made that factual dependency cannot be established

prepare a two-signature administrative decision using the format in M21-1, Part X, Subpart v, 1.C.2.Note: Prepare the decision on VA Form 21-5427 when the basis for denial or discontinuation is excessive net worth.

5Requests for Proof of Continued Dependency in Connection With Award Action

This topic contains information about proof of dependency, including

  • when to require proof of continued dependency, and
  • obtaining proof of continued dependency in death and disability cases.

Revised December 16, 2020

VII.i.4.B.5.aWhen to Require Proof of Continued Dependency

Proof of continued dependency is required for award action in disability and death compensation cases when the information on VA Form 21P-509 is over a year old. Example: Situations may arise in which a determination of entitlement has been delayed pending receipt of

  • service records, or
  • other evidence.

VII.i.4.B.5.bObtaining Proof of Continued Dependency in Death and Disability Cases

Follow the steps in the table below to request proof of continued dependency in death and disability cases when taking award action.

StepAction
1

Review the application and the claims folder.

2

Is there any evidence that indicates the dependency status has changed?

  • If yes , go to the next step.
  • If no , go to Step 5.
3

Send a letter asking the claimant to

4

Did the claimant return VA Form 21P-509 __ within 30 days?

  • If yes ,
    • take award action based on the evidence of record and information contained on VA Form 21P-509, and
    • go to Step 24.
  • If no , and the claim is for
    • death compensation,
      • deny the claim, and
      • go to Step 24, or
    • disability compensation,
      • process the award but deny the claim for additional benefits for the parent, and
      • go to Step 24.
5

Is the information on VA Form 21P-509 over a year old?

  • If yes , go to Step 8.
  • If no , go to the next step.
6

Is the claimant eligible for benefits as or for a parent during a period of time that precedes the 12-month period of time for which the claimant provided income and expenses on the VA Form 21P-509 __ of record?

  • If yes ,
    • award benefits effective the first of the month following the earliest month for which income and expenses were provided on the form,
    • leave the end product (EP) associated with the award pending, and
    • ask the beneficiary (in the corresponding decision notice) to complete and return within 30 days another VA Form 21P-509 for each 12-month period that precedes the 12-month period the VA Form 21P-509 of record covers.
  • If no ,
    • process the award, and
    • go to Step 24.
7

Did the beneficiary return the VA Form(s)21P-509 within 30 days?

  • If yes ,
    • award benefits effective the first of the month following the earliest date on which eligibility exists and dependency is demonstrated, and
    • go to Step 24.
  • If no ,
    • clear the pending EP, and
    • take no further action.
8

If the claim is for

  • death compensation, go to the next step, or
  • disability compensation, go to Step 10.
9
  • Process the award.
  • Send the parent VA Form 21P-509 with the decision notice.
  • Advise the parent that failure to return the completed form within 30 days will result in discontinuation of their benefits.
  • Go to Step 11.
10
  • Process the award.
  • Send the Veteran VA Form 21P-509 with the decision notice.
  • Advise the Veteran in the decision notice that failure to return the completed form within 30 days will result in discontinuation of the additional benefits for the parent.
11

Establish a diary under diary code 22, Verify Income or Dependency , that will expire in 30 days.

12

Did the beneficiary return VA Form 21P-509 __ within 30 days?

  • If yes ,
    • clear the diary established in the preceding step (if it is still pending), and
    • go to the next step.
  • If no , go to Step 16.
13

Does the _VA Form 21P-509 _contain information that necessitates an award adjustment?

  • If yes ,
    • establish EP 130, using the date VA received the form as the date of claim, and
    • go to the next step.
  • If no ,
    • clear an EP 692, and
    • disregard the remaining steps in this table.
14

Will the award adjustment create an overpayment?

  • If yes ,
    • add Potential Under/Overpayment as a special issue under the EP 130, and
    • go to the next step.
  • If no ,
    • make the award adjustment under the pending EP 130, and
    • go to Step 24.
15

Make the award adjustment under the pending EP 130 and go to Step 24.

16
  • Clear the 810 work item that was automatically generated when the diary established in Step 11 expired.
    • Establish EP 130.
      • Use the date of the 810 work item as the date of claim.
      • Add Potential Under/Overpayment as a special issue.

Reference: For more information on 800 series work items, see M21-4, Appendix B.

17

Under the pending EP 130, suspend payments to the parent or discontinue the payment of additional benefits for the parent effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in the Veterans Benefits Management System (VBMS).

18

Establish EP 600 and add Potential Under/Overpayment as a special issue.

19

Send a notice of proposed adverse action that

  • proposes to discontinue benefits VA paid to or for the parent effective the same date VA first paid them
  • contains the elements in M21-1, Part X, Subpart ii, 3.A.2, and
  • instructs the beneficiary to return _VA Form 21P-509 _within 60 days.
20

Did the beneficiary return VA Form 21P-509 within 65 days?

  • If yes , go to the next step.
  • If no ,
    • take the action proposed in the notice of proposed adverse action, and
    • go to Step 24.
21

Is an award adjustment necessary based on information contained on VA Form 21P-509?

  • If yes , go to the next step.
  • If no , go to Step 23.
22

Adjust the award under the pending EP 600 and go to Step 24.

23

Clear the EP 600.

24

Prepare a decision notice and send it to the claimant/beneficiary.Important: When notifying a claimant of the denial referenced in Step 4 of this table, instruct the claimant in the decision notice to complete VA Form 20-0995, Decision Review Request: Supplemental Claim, and return it with the VA Form 21P-509 referenced in Step 3. Reference: For more information about preparing decision notices, see M21-1, Part VI, Subpart i, 1.B.1.

6Follow-Ups to Determine Whether Dependency Has Ceased

This topic contains information about conducting follow-ups to determine whether dependency has ceased, including

  • follow-ups on dependency status
  • corporate record control of dependency issues
  • duration of control for dependency follow-up, and
  • parent responsible for minor children.

Revised July 11, 2015

VII.i.4.B.6.aFollow-Ups on Dependency Status

Under certain circumstances, an award may be made for a parent whose present economic status warrants a determination of dependency, but whose financial situation may reasonably be expected to improve in the future.Examples: This situation may exist in cases in which

  • the parent is comparatively young and has been unemployed because of poor health, or
  • the award is predicated on the parent’s financial responsibility with regard to minor children.

VII.i.4.B.6.bCorporate Record Control of Dependency Issues

If an award is made and there is a reasonable expectation that the parent’s financial situation may improve, establish a diary under reason code 22, Verify Income or Dependency, for a follow-up at an appropriate date to determine whether dependency has ceased.Reference: For more information for establishing a diary in Share, see the Share User Guide.

VII.i.4.B.6.cDuration of Control for Dependency Follow-Up

If it appears probable that the parent’s financial situation may improve by reason of recovery of employability or similar circumstances, where a future date cannot be definitely estimated, establish the control for one to two years.

VII.i.4.B.6.dParent Responsible for Minor Children

If the parent’s dependency is based on financial responsibility for a minor child or children, establish

  • a diary for release of the follow-up letter approximately 30 days prior to the date when the child (oldest child if more than one child is involved) will attain age 18, then
  • a 30-day suspense period for receipt of the required evidence/information.

7Changes in Marital and Dependency Status of Parents in Disability and Death Compensation Cases

This topic contains information about changes in the marital and dependency status of parents in disability and death compensation cases, including

  • when to reevaluate dependency
  • handling cessation of dependency
  • reducing or discontinuing awards, and
  • award adjustment when the dependency of one parent, on a two-parent award, ceases.

Revised December 16, 2020

VII.i.4.B.7.aWhen to Reevaluate Dependency

Reevaluation of a parent’s dependency is required when there is any

  • change in a parent’s marital status, or
  • significant change in a parent’s income or net worth.

VII.i.4.B.7.bHandling Cessation of Dependency

If it is determined that a parent is no longer dependent because of a change in economic status, provide a notice of proposed adverse action.Exceptions: There is no need to prepare and issue a notice of proposed adverse action if a

  • Veteran in receipt of additional disability compensation for a parent notifies VA the parent is no longer financially dependent on the Veteran, or
  • parent in receipt of death compensation reports a change in economic status that renders the parent ineligible for death compensation.

VII.i.4.B.7.cReducing or Discontinuing Awards

Reduce a disability compensation award or discontinue a death compensation award effective the first day of the calendar year following the calendar year during which dependency ceased.References: For more information on

VII.i.4.B.7.dAward Adjustment When the Dependency of One Parent, on a Two-Parent Award, Ceases

Follow the steps in the table below if it is determined that one of two parents receiving death compensation is no longer dependent, but the other parent continues to be dependent.

StepAction
1

Provide a notice of proposed adverse action to the parent who is no longer dependent and instruct the parent to reply within 60 days.

2

Was evidence received within 65 days showing the parent in question remains dependent?

  • If yes , continue the award and notify the parent of the decision.
  • If no ,
    • discontinue the award of the parent in question
    • increase the rate for the remaining parent to that payable under dependency code 50 or 60 (whichever is appropriate), effective the date of discontinuation of the other parent’s award,
    • and notify each parent of the actions taken.

Reference: For more information on award adjustment when the dependency of one parent, on a two-parent award, ceases, see 38 CFR 3.651.

8Death of One of Two Dependent Parents

This topic contains information on the death of one of two dependent parents, including

  • action taken on the death of one of two parents
  • automatic rate adjustment for remaining parent, and
  • handling VA’s failure to make a rate adjustment due to an administrative error.

Revised October 11, 2010

VII.i.4.B.8.aAction Taken on the Death of One of Two Parents

The table below describes the action taken in cases where one of two dependent parents dies.

Type of BenefitActionAdditional Information

death compensation

  • Discontinue the deceased parent’s award effective the first day of the month of death.
  • Increase the remaining parent’s benefits to the rate payable under dependency code 50 or 60 (whichever is appropriate),effective the date of discontinuation of the other parent’s award.

For more information on how the death of one of two dependent parents affects death compensation benefits, see

disability compensation

Reduce the Veteran’s award to the rate for a Veteran with one dependent parent effective the first of the month after the month of the parent’s death.Note: If the parent died before October 1, 1982, the reduction is effective the first of the year after the year of the parent’s death.

For more information on how the death of one of two dependent parents affects disability compensation benefits, see 38 CFR 3.500(g)(2).

parents’ DIC

---

For more information on how the death of one of two dependent parents affects Parents’ DIC, see M21-1, Part IX, Subpart iii, 1.D.6.

VII.i.4.B.8.bAutomatic Rate Adjustment for Remaining Parent

When one parent is removed from a two-parent death compensation award because of death or cessation of dependency, VA automatically increases the rate payable to the remaining parent. A specific claim for increased benefits from the remaining parent is not required.Reference: For more information on increasing the death compensation rate payable to a remaining parent, see 38 CFR 3.651(a).

VII.i.4.B.8.cHandling VA’s Failure to Make a Rate Adjustment Due to an Administrative Error

If VA fails to increase the rate payable to the surviving (or remaining) parent due to an administrative error, there is no time limit for making the adjustment.Example:

  • 1981: A father in receipt of death compensation dies. The father’s award is stopped in a timely manner, but VA fails to increase the mother’s award (who is also in receipt of death compensation) to the single parent rate.
  • 1990: The oversight is discovered. The mother is entitled to the single parent rate effective the first of the month of the father’s death.

9Reestablishment of Parental Dependency

This topic contains information about reestablishment of parental dependency, including

  • when to resume payments for a dependent parent
  • example of dependency reestablished and payments resumed
  • award adjustment for adding a parent back onto a two-parent award, and
  • example of dependency reestablished and award adjusted.

Revised March 19, 2018

VII.i.4.B.9.aWhen to Resume Payments for a Dependent Parent

If payments of death compensation are discontinued or additional disability compensation payments are reduced because a parent was determined not to be dependent, resume payments effective the date dependency again arises. Important: Satisfactory evidence must be received within one year from the date of notice of the discontinuation or reduction. Otherwise, the effective date is determined by the date of claim subject to 38 CFR 3.31.

VII.i.4.B.9.bExample: Dependency Reestablished and Payments Resumed

Scenario:

  • On October 15, 2001, VA receives notification from a parent in receipt of death compensation that the parent
    • accepted a job that pays $60,000 per year, and
    • received the first paycheck on September 29, 2001.
  • On October 20, 2001, VA
    • determines the parent is no longer entitled to death compensation (because dependency has ceased), and
    • discontinues the parent’s benefits effective January 1, 2002, per 38 CFR 3.660(a)(2).
  • On February 13, 2002, VA receives the parent’s application for death compensation which showed the parent quit the job and received the last paycheck on January 26, 2002.

Result: The effective date of entitlement to death compensation is January 27, 2002. The effective date of payment (after the application of 38 CFR 3.31) is February 1, 2002. Note: Had the parent received the last paycheck before December 31, 2001, benefits would have continued uninterrupted since VA could not discontinue benefits from an effective date earlier than January 1, 2002.

VII.i.4.B.9.cAward Adjustment for Adding a Parent Back Onto a Two-Parent Award

If, because dependency has ceased, one parent is removed from a two-parent award of death compensation, and the parent whose award was stopped subsequently submits new evidence reestablishing entitlement, follow the instructions in the table below. Note: The instructions in the table below are for application whether the parents are living together or apart from one another.

StepAction
1

Furnish a notice of proposed adverse action to the parent who is still receiving death compensation (Parent A).

2

Establish a 65-day control.

3

At the end of the control period,

  • pay to the parent whose award was stopped (Parent B)
    • the full amount of benefits to which Parent B is entitled, effective the first of the month following the month for which VA last paid Parent A, and
    • the difference between the two-parent rate and the single-parent rate that was paid to Parent A for any period of entitlement that precedes the first of the month following the month for which VA last paid Parent A, and
  • reduce Parent A’s award to the two-parent rate effective the first of the month following the month for which VA last paid that parent.

Important: Do not create an overpayment in the other parent’s account.

VII.i.4.B.9.dExample: Dependency Reestablished and Award Adjusted

Scenario:

  • On October 28, 2001, VA determines one of two parents (the mother) in receipt of death compensation is no longer dependent. Effective January 1, 2002, VA
    • discontinues the mother’s award, and
    • increases the father’s award to the single-parent rate of $75.00 per month.
  • On March 14, 2002, VA receives evidence that reestablishes the mother’s dependency from October 28, 2001.
  • On April 25, 2002, VA sends a notice of proposed adverse action to the father.
  • The father does not respond to the notice of proposed adverse action.
  • Action to process the pending EP 600 is taken on August 7, 2002. (August 1, 2002, represents the first day of the month following the month for which VA last paid death compensation to the father.)

Award Action/Adjustment:

  • Pay the mother $5.00 per month from January 1, 2002, to August 1, 2002.
  • Pay the mother the full monthly rate of $40.00 effective August 1, 2002.
  • Reduce the father’s monthly rate to $40.00 effective August 1, 2002.

End of Part VII, Subpart i, Chapter 4, Section B

This text is a rendering of Part VII, Subpart i, Chapter 4, Section B. The official version is the one that governs your claim.

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