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A death gratuity will be granted to eligible survivors of deceased veterans in the form of a one-time, non-taxable lump sum allotment of $100,000 to help the family deal with the financial hardships caused by the death of the veteran. Survivors are eligible for this benefit if the veteran’s death occurred under the following conditions:
Has been provisionally accepted for that duty; or
Has been selected for service in that armed force
If survivors are proven eligible to receive the veteran’s death gratuity, the following os the order of precedence used to distribute the funds:
If, however, there are none of the survivors listed above, the death gratuity will not be paid to any other person. Also, if the intended beneficiary dies before the gratuity is paid, the gratuity will go to the next person or persons in order on the above list. Claims for gratuity payment are made by submitting a completed DD Form 397, Claim Certification and Voucher for Death Gratuity Payment.
If the a retired veteran dies within 120 days after retiring from service and the VA determines that the death was caused by an illness or injury incurred while the retiree was on active duty, that veteran’s beneficiaries are entitled to a lump sum gratuity in the sum of $12,420. If the veteran retiree dies more than 120 days after retiring from service, beneficiaries are not eligible for this gratuity. Active duty as defined for the circumstance of determining eligibility for this gratuity includes: full-time active reserve personnel traveling directly en route to or from o participating in annual training, active duty training, initial duty training, active duty for special work, special active duty training or inactive duty training and National Guard personnel traveling directly en route to or from or participating in annual training, active duty training, full time national guard duty, temporary tour of active duty, initial active duty training, or inactive duty training. This gratuity is not required to be counted as gross income when reporting annual taxes and will be distributed to the veteran’s survivors in the following order:
If the gratuity is not paid to one of the above listed persons, it will not be paid to any other person. If the intended beneficiary dies before receiving the gratuity payment, the next eligible recipient according to the above list will be granted the funds.
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