Optional death gratuity beneficiary designation Published May 19, 2008 By Teresa Perrin 355th Mission Support Squadron DAVIS-MONTHAN AIR FORCE BASE, Ariz. -- The military makes every effort to ensure families are provided for upon the death of an active duty service member. One of the first claims processed is the Death Gratuity benefit. This payment of $100,000 is provided to the immediate family to ensure that the last thing they need to worry about at that moment is finances. It is not an advancement of any other benefit, it is simply a gratuitous payment with no restrictions on how it can be spent. In most cases, the Casualty Assistance and Mortuary Affairs personnel meet with the next of kin within 24 hours of an active duty service member's death and complete the claim form. Within another 48 hours the payment is made by direct deposit into the account selected by the beneficiary. In the past, public law limited who could be named as a beneficiary for this payment. It was required to be paid first in a by-law manner to the lawful surviving spouse, or if none, to any child or children in equal shares. If the service member did not have a spouse or children, a beneficiary could be named on the Record of Emergency Data; however, it was limited to parents, siblings or a combination of parents and siblings. No one else could be named. The law restricting beneficiaries has now been relaxed. A member may now voluntarily name an "Optional Death Gratuity Beneficiary." The first $50,000 of the benefit must still be paid has it always has been to immediate family in the by-law manner previously described. However, the change in law now allows a service member to designate one person to receive anywhere from $10,000 to $50,000 of the remaining Death Gratuity benefit. The total amount designated to the optional beneficiary must be in 10 percent increments up to 50 percent (i.e., $10,000, $20,000, $30,000, $40,000 or $50,000). If less the 50 percent is designated to the one optional death gratuity beneficiary, then the remainder will be paid to the beneficiary of the first $50,000. Prior to the change in law, a married service member or a service member with one or more children had no option but to leave the Death Gratuity payment to the spouse or child(ren). The change in law provides more flexibility to the service member. For example, an unmarried service member with children may now designate one person of his/her choice for a portion of the death gratuity. In this example, a service member may wish to designate a parent or other person who he/she elects to be guardian over the minor children or who is trusted to provide for the children. This allows immediate access to up to $50,000 rather than the entire amount being tied up in a trust fund, waiting on legal guardianship to be obtained, etc. The current version of the vRED is being modified to allow automatic updating of an Optional Death Gratuity Beneficiary. Until that time, service members wanting to make a voluntary optional beneficiary designation should use the remarks section of the vRED. A valid designation must include the statement "Optional Death Gratuity-Designated Beneficiary:" followed by the first name, middle initial and last name of the person you are designating. It must also include this person's street address with zip code and telephone number. And lastly, you must indicate the percentage of the payment to go to this optional beneficiary as 10, 20, 30, 40 or 50 percent. Using the remarks section to designate an optional death gratuity beneficiary does not preclude its use for other existing purposes. For questions relating to the new Optional Death Gratuity Beneficiary and remarks on the vRED, contact 355th Mission Support Squadron customer service, 228-4425 or the Casualty Assistance Office at 228-3686.