A surviving spouse can keep the Veteran's Disability Pension payment in the month of their death.

I found the following blurb on the U.S. Senate Committee on Veteran's Affairs website, http://veterans.senate.gov/issues-benefits.cfm

I thought it would be worth noting for those that may have been affected before the administration caught up with the rule changes. I am an accredited attorney with the VA Administration and our office provides information to our clients regarding Veterans Benefits that may be available which relate to funding long term care.

If you, your parent or your spouse (even if you are a widow) is a Veteran, then call us today for more information. 401-841-5700
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Surviving Spousal Benefits—Righting a Wrong:

In November, 2008, Chairman Akaka received a letter from the widow of a veteran regarding the Treasury Department’s seizure of funds from her bank account to reimburse the government for the VA compensation check issued to her late husband the month that he died. The widow had not been notified in advance of this action. Unaware that the funds were no longer in her account, she wrote several checks to honor obligations that she unknowingly could no longer cover. Her bank responded with financial penalties.

The Treasury Department was acting on flawed instructions from VA. Under a 1996 law, surviving spouses of a veteran may, in fact, keep a VA disability or pension check for the month in which the veteran dies. After Committee staff intervention, the widow was reimbursed for the amount at issue and the bank agreed to drop the overdraft fees.

Further examination revealed that the widow’s experience was not an isolated case of poor administration, but rather the result of VA’s failure to update its computer systems and policy in this area. Many other widows or widowers of service-connected veterans over the preceding twelve years may have experienced a similar hardship after suffering the loss of a spouse.
On December 5, 2008, Chairman Akaka contacted former VA Secretary Peake to alert him to the Committee staff findings and to request that he take corrective measures. In his December 11, 2008, response then-Secretary Peake agreed to remedy this error.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.