Military Veteran Estate Settlement in North Carolina: Benefits, VA Claims, and Probate

North Carolina’s Deep Military Connection

North Carolina is one of the most military-connected states in the country. Fort Liberty (formerly Fort Bragg) is the largest military installation in the world by population. Camp Lejeune houses tens of thousands of Marines and their families. Seymour Johnson Air Force Base, Marine Corps Air Station Cherry Point, and Coast Guard Station Elizabeth City add to a veteran population that numbers well over 700,000 across the state.

When a veteran dies in North Carolina, the estate settlement process involves everything that any estate faces, probate filings, asset distribution, creditor management, tax obligations, plus an additional layer of military-specific benefits, claims, and procedures that can make or break a surviving family’s financial stability.

This guide covers both sides: the standard NC probate process as it applies to veteran estates, and the military-specific benefits and procedures that executors and surviving families need to claim.

Afterpath provides North Carolina families with guided, step-by-step estate settlement tools, including an AI-powered Pathfinder assistant, NC-specific compliance tracking, document management, and task automation. For military families, Afterpath helps track both probate obligations and benefit claim deadlines so nothing falls through the cracks during an already overwhelming time.

The DD-214: The Most Important Document You Need

Before anything else, locate the veteran’s DD-214 (Certificate of Release or Discharge from Active Duty). This document is the key that unlocks virtually every military benefit, from burial honors to survivor pension. Without it, the claims process becomes dramatically more difficult.

Where to find the DD-214:

• The veteran’s personal records: Check filing cabinets, safes, safety deposit boxes, and document folders. Many veterans keep their DD-214 with other important papers.
• County Register of Deeds: Many NC veterans recorded their DD-214 with their county Register of Deeds. Contact the county where the veteran lived and ask if a copy is on file.
• The National Personnel Records Center (NPRC): Request a copy using Standard Form 180 (SF-180) or through the NPRC’s online portal at eVetRecs. Next of kin can request records. Processing times vary from weeks to months.
• The VA: If the veteran was receiving VA benefits, the VA may have the DD-214 on file.

What the DD-214 tells you:

• Dates of active duty service
• Character of discharge (honorable, general, other than honorable, dishonorable, bad conduct)
• Awards and decorations
• Military occupational specialty
• Service branch

The character of discharge matters enormously. Most VA benefits require an honorable or general discharge. Other than honorable or dishonorable discharges may disqualify the veteran’s survivors from many benefits, though some exceptions exist.

If you cannot find the DD-214, do not wait to start the benefits process. File for records immediately, as NPRC requests can take months. In the meantime, other documentation such as military ID cards, VA correspondence, or service medals can help establish service.

VA Survivor Benefits: What the Family May Be Owed

The Department of Veterans Affairs provides multiple categories of survivor benefits. Each has its own application process, eligibility requirements, and deadlines. Missing a deadline does not necessarily eliminate the benefit permanently, but it can delay payments by months or years.

Dependency and Indemnity Compensation (DIC)

DIC is a tax-free monthly benefit paid to eligible survivors of veterans who died from a service-connected condition, or who were rated totally disabled from a service-connected condition for a continuous period of at least 10 years immediately preceding death.

Current DIC rates (2026):

• Surviving spouses receive a base monthly rate (check va.gov for current amounts, as rates adjust annually)
• Additional amounts are paid if the surviving spouse has dependent children, is housebound, or needs Aid and Attendance
• Each dependent child may also receive a monthly benefit

How to apply:

File VA Form 21-534EZ (Application for DIC, Death Pension, and/or Accrued Benefits by a Surviving Spouse or Child). File as soon as possible after death. If filed within one year of the veteran’s death, benefits are retroactive to the date of death.

VA Death Pension

Separate from DIC, the VA Death Pension is an income-based benefit for surviving spouses and dependent children of wartime veterans. The veteran need not have died from a service-connected condition, but must have served during a designated wartime period.

Eligibility requirements:

• The veteran served at least 90 days of active duty, with at least one day during a wartime period
• The veteran was discharged under conditions other than dishonorable
• The surviving spouse’s countable income falls below the Maximum Annual Pension Rate (MAPR)
• The surviving spouse has not remarried (with limited exceptions)

Wartime periods include: World War II, Korean War, Vietnam War, Gulf War (August 2, 1990 to a date yet to be determined). If the veteran served after September 7, 1980, they must have completed 24 months of continuous active duty or the full period for which they were called.

Accrued Benefits

If the veteran had a pending VA claim at the time of death, survivors may be entitled to accrued benefits, the payments the veteran would have received had they lived. File within one year of the veteran’s death using VA Form 21-534EZ.

This is frequently overlooked. Check with the VA to determine if the veteran had any pending claims, rating increases, or appeals at the time of death. These can represent significant retroactive payments.

Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI)

SGLI provides life insurance coverage for active duty service members. If the veteran was still on active duty or within 120 days of separation, an SGLI policy may be in effect.

VGLI is the post-service continuation of SGLI. Veterans who converted their SGLI to VGLI have coverage that pays upon death. Contact the Office of Servicemembers’ Group Life Insurance (OSGLI) to file a claim.

How to claim:

• Contact OSGLI at 1-800-419-1473
• File the claim using the SGLI/VGLI claim form
• Provide a certified death certificate
• SGLI/VGLI benefits are paid directly to named beneficiaries, not through the estate (they bypass probate)

Important: SGLI/VGLI proceeds go to the named beneficiary on the policy, which may differ from what the will states. The beneficiary designation on the insurance policy controls, not the will. For more on how beneficiary designations interact with probate, see our complete guide to probate in North Carolina.

Military Burial Benefits

North Carolina veterans and their families have access to multiple burial benefit programs. These are separate from estate settlement but are often handled simultaneously by the same family members.

VA Burial Allowance

The VA provides a burial allowance to help cover burial and funeral expenses. The amount depends on whether the death was service-connected:

• Service-connected death: A higher burial allowance is paid
• Non-service-connected death: A lower burial allowance is paid if the veteran was receiving VA pension or disability compensation, or died in a VA facility
• Plot or interment allowance: An additional allowance for veterans not buried in a national cemetery

File VA Form 21P-530EZ (Application for Burial Benefits) within two years of the veteran’s burial.

National Cemetery Burial

Veterans with an honorable or general discharge are eligible for burial in a national or state veterans cemetery at no cost. Benefits include:

• Gravesite
• Opening and closing of the grave
• Government headstone or marker
• Burial flag
• Presidential Memorial Certificate

North Carolina national and state veterans cemeteries:

• Salisbury National Cemetery (Rowan County)
• New Bern National Cemetery (Craven County)
• Raleigh National Cemetery (Wake County)
• Wilmington National Cemetery (New Hanover County)
• Western Carolina State Veterans Cemetery (Buncombe County)
• Coastal Carolina State Veterans Cemetery (Onslow County)
• Sandhills State Veterans Cemetery (Hoke County)

Contact the National Cemetery Administration at 1-800-535-1117 to schedule burial at a national cemetery, or the NC Division of Veterans Affairs for state veteran cemetery information.

Military Funeral Honors

Federal law entitles every eligible veteran to a military funeral honors ceremony that includes, at minimum, the folding and presentation of an American flag and the playing of Taps. Additional honors may be available depending on the veteran’s rank, service, and the availability of honor guard teams.

Request military funeral honors through the funeral director, who coordinates with the appropriate military service branch.

NC Probate for Veteran Estates: Where Military and State Law Intersect

The standard NC probate process applies to veteran estates just as it does to any other estate. The executor must file with the Clerk of Superior Court, inventory assets, notify creditors, pay debts, file tax returns, and distribute property. For a complete walkthrough, see our guide on how to probate a will in North Carolina.

However, several military-specific factors affect the probate process:

VA Benefits and the Estate

Most VA survivor benefits (DIC, pension, SGLI/VGLI) are paid directly to eligible survivors and do not pass through the estate. This means they are not subject to probate, are not available to estate creditors, and are not included in the estate inventory.

What does pass through the estate:

• The veteran’s personal property (home, vehicles, bank accounts, investments)
• Any VA benefits that accrued but were not paid before death (accrued benefits go to the eligible survivor, not the estate, but require a claim)
• Military retirement pay that accrued before death

Military Retirement Pay

If the veteran was receiving military retirement pay, the Defense Finance and Accounting Service (DFAS) must be notified of the death. Overpayments made after the date of death must be returned. DFAS can recoup overpayments from any source, including the estate, so prompt notification prevents complications.

Survivor Benefit Plan (SBP): If the veteran elected SBP during service, the surviving spouse receives an annuity equal to 55% of the veteran’s retirement pay. SBP payments go directly to the surviving spouse and do not pass through the estate. Contact DFAS to initiate SBP payments.

VA Debt Forgiveness

If the veteran owed money to the VA (overpayments, compensation adjustments, etc.), the surviving spouse can request a waiver of the debt. VA debts are also generally dischargeable upon the veteran’s death if the estate is insolvent. Consult with a VA-accredited attorney or claims agent if the veteran had outstanding VA debts.

Military ID Cards and DEERS

The surviving spouse should contact the nearest military ID card office (RAPIDS site) to update their status in DEERS (Defense Enrollment Eligibility Reporting System). Surviving spouses of veterans who died on active duty, or who were receiving military retirement, may be entitled to continued benefits including commissary and exchange access and, in some cases, continued healthcare coverage.

Surrendering the veteran’s military ID: The veteran’s military ID card should be surrendered or destroyed. It is no longer valid and should not be used.

TRICARE for Survivors

Surviving spouses and dependent children may be eligible for continued TRICARE health coverage. The specific program depends on the circumstances:

• TRICARE for active duty deaths: Surviving family members receive transitional healthcare coverage and may be eligible for ongoing TRICARE coverage.
• TRICARE for retired veteran deaths: Surviving spouses retain TRICARE eligibility as long as they do not remarry before age 55. If they remarry after age 55, coverage continues.
• TRICARE for Life: If the surviving spouse is 65 or older and enrolled in Medicare Parts A and B, they are eligible for TRICARE for Life, which acts as a Medicare supplement.

Contact TRICARE at 1-800-444-5445 or visit tricare.mil to determine specific eligibility and enrollment requirements.

The VA Claims Process: Practical Tips

Filing VA claims while simultaneously managing NC probate is exhausting. The bureaucratic demands of both systems can overwhelm even the most organized families. Here are practical strategies:

File VA claims early: Do not wait until probate is complete to file for DIC, pension, or accrued benefits. These are separate processes, and early filing means earlier payments and retroactive benefits.

Use a Veterans Service Organization (VSO): VSOs like the American Legion, VFW, DAV (Disabled American Veterans), and NC Division of Veterans Affairs provide free claims assistance. A VSO representative can help prepare and file claims, represent survivors before the VA, and track claim status. This service is free and dramatically improves outcomes.

NC Division of Veterans Affairs: North Carolina operates veteran service offices in many counties. These offices help with claims, benefits counseling, and connecting survivors with resources. Find your county office through the NC Department of Military and Veterans Affairs website.

Gather documentation systematically: The VA requires specific documentation for each claim. Having the following ready expedites the process:

• DD-214
• Certified death certificate (multiple copies)
• Marriage certificate (for surviving spouse claims)
• Birth certificates of dependent children
• The veteran’s VA claim file number
• Recent VA correspondence showing benefits received
• Medical records if death was service-connected

Special Considerations for NC Military Families

Fort Liberty (Formerly Fort Bragg) Area

The Fayetteville/Fort Liberty area has the highest concentration of military families in NC. Local resources include the Fort Liberty Survivor Outreach Services, Cumberland County Veterans Service Office, and numerous VSO chapters. The Fort Liberty Casualty Assistance Center provides comprehensive support for families of service members who die on active duty.

Camp Lejeune and Related Bases

Marine families at Camp Lejeune, MCAS Cherry Point, and MCAS New River have access to base-specific casualty assistance offices. Onslow and Craven County courts process a significant volume of veteran estates and are generally familiar with military-specific issues.

Camp Lejeune Water Contamination: Families of veterans who served at Camp Lejeune between 1953 and 1987 may be eligible for benefits under the Camp Lejeune Justice Act. If the veteran’s death is potentially connected to contaminated water exposure, consult a VA-accredited attorney about filing a claim.

NC State Tax Benefits for Veterans

North Carolina provides several tax benefits relevant to veteran estates:

• Military retirement pay is exempt from NC state income tax (enacted in 2021, fully phased in by 2024)
• Property tax exclusions may be available for surviving spouses of disabled veterans
• The veteran’s final NC tax return should account for any applicable military exclusions

The Executor’s Checklist for Veteran Estates

This checklist supplements the standard NC executor duties checklist with military-specific tasks:

Within the first week:

• [ ] Locate the DD-214
• [ ] Notify DFAS of the death (if receiving military retirement)
• [ ] Contact OSGLI for SGLI/VGLI claim
• [ ] Request military funeral honors through the funeral director
• [ ] Contact a VSO for claims assistance

Within the first month:

• [ ] File VA Form 21-534EZ for DIC, pension, and/or accrued benefits
• [ ] Notify TRICARE and update DEERS status
• [ ] Surrender the veteran’s military ID
• [ ] Begin standard NC probate process (file with Clerk of Superior Court)
• [ ] Contact the NC Division of Veterans Affairs county office

Within 90 days:

• [ ] File the estate inventory with the Clerk (include all assets except direct-to-survivor benefits)
• [ ] File for VA burial allowance (VA Form 21P-530EZ)
• [ ] Apply for SBP annuity if applicable
• [ ] Check for any pending VA claims the veteran had at death

Ongoing:

• [ ] Track VA claim status and respond to VA requests promptly
• [ ] Continue standard NC probate administration
• [ ] File the veteran’s final federal and state tax returns
• [ ] Watch for VA overpayment notices and respond within deadlines

When You Need Professional Help

Most veteran estate settlements can be handled by an organized executor with the help of a VSO. However, some situations warrant professional assistance:

• Service-connected death claims: If you believe the veteran’s death was caused or accelerated by a service-connected condition but the VA disagrees, a VA-accredited attorney can represent you in the appeals process
• Complex estates: Estates with significant assets, business interests, or real property benefit from both a probate attorney and a VSO working in parallel
• Camp Lejeune claims: Water contamination claims involve specialized legal expertise
• Contested discharges: If the veteran’s discharge characterization affects benefit eligibility, an attorney can help pursue a discharge upgrade

Afterpath’s professional marketplace connects you with NC attorneys experienced in both probate and veteran-specific estate issues.

Honoring Service While Managing the Practical

Settling a veteran’s estate is an act of service in itself. The paperwork is extensive, the bureaucratic systems are separate and sometimes contradictory, and the emotional weight of managing a military family’s affairs during grief is heavy.

But every benefit claimed, every deadline met, and every form filed correctly is money and security for the family the veteran served to protect. The surviving spouse who receives DIC payments for decades. The children whose education benefits remain intact. The family who gives their veteran a burial with full military honors.

NC families do not have to navigate this alone. Between VSOs, the NC Division of Veterans Affairs, probate court staff, and tools like Afterpath, the support infrastructure exists. The key is knowing it is there and using it.

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Related Resources

• Complete Guide to Probate in North Carolina - Full overview of the NC probate process
• NC Executor Duties Checklist - Standard executor obligations
• How to Probate a Will in North Carolina - Step-by-step guide
• Business Assets in Probate - Handling complex assets in the estate
• DIY Probate vs Hiring an Attorney in NC - Understanding when professional help is needed