Delaware Office of Veterans Services: Survivor Benefits After a Military Death

When a veteran dies in Delaware, the surviving family faces a claim process that spans at least three separate bureaucracies: the federal Department of Veterans Affairs, the Delaware Office of Veterans Services, and — if the deceased was also a state employee — the Delaware Office of Pensions. None of these agencies will tell you about the others. You have to find each one yourself.

This post maps out what the Delaware Office of Veterans Services (OVS) actually provides, what the state adds on top of federal VA benefits, and how the Survivor Benefit Plan interacts with Delaware tax law.

What the Delaware Office of Veterans Services Does

The Delaware OVS is a state agency — not the federal VA — that exists to connect veterans and their families to both state and federal programs. Its primary functions for survivors include:

• Administering eligibility for burial at the Delaware Veterans Memorial Cemetery in Bear, New Castle County
• Helping families apply for the 100% Disabled Veterans School Tax Credit
• Providing VSO (Veterans Service Officer) counseling on federal SBP, DIC, and life insurance claims

The OVS does not pay benefits directly. It connects families to the right programs and helps them file. That distinction matters: if you call OVS expecting a check, you will be redirected. If you call asking for help filing the right forms, you will get substantive assistance.

Delaware Veterans Memorial Cemetery: Who Qualifies

The cemetery in Bear is available to:

• Veterans who were honorably discharged and were Delaware residents at the time of death
• Spouses and dependent children of eligible veterans (buried with or after the veteran)
• Veterans who die on active duty and were Delaware residents

The burial itself — including the grave, liner, opening and closing, and grave marker — is provided at no cost to the family for the veteran. Spouses pay a nominal fee for opening and closing, but the plot and marker are free.

Families must contact the cemetery directly to verify eligibility and schedule. The VA's National Cemetery Scheduling Office handles federal cemeteries separately — the Delaware Veterans Memorial Cemetery is state-operated and has its own process.

The 100% Disabled Veterans School Tax Credit

This is one of the most valuable and most overlooked programs in Delaware. A veteran rated 100% permanently and totally disabled by the VA is exempt from school property taxes on their primary residence. The exemption continues for a surviving spouse who has not remarried, provided:

• The property remains the surviving spouse's primary residence
• The surviving spouse does not remarry

This is a full exemption on the school tax portion — not a partial credit. For most Delaware homeowners, school taxes represent the largest share of the property tax bill. The exemption must be applied for through the county Board of Assessment; it does not transfer automatically when the deed changes hands. If you are settling the estate and the property moves into the surviving spouse's name, reapply immediately.

The separate State Senior School Property Tax Credit — a 50% reduction up to $500 for residents over 65 — is a different program and requires its own application by April 30 of each tax year. Pending legislation (HB 73) may increase the cap to $1,000 beginning in 2026.

The Survivor Benefit Plan: What Delaware Taxes

The federal Survivor Benefit Plan (SBP) is an annuity that military retirees elect to protect their surviving spouse. If elected, the surviving spouse receives up to 55% of the retiree's base pay. SBP premiums are deducted from the retiree's pay during their lifetime.

Delaware's tax treatment of SBP income matters:

• Delaware taxes SBP payments as ordinary income, but provides a pension exclusion of up to $12,500 for residents 60 and older
• Military retirees under 60 can exclude up to $2,000 of military pension income
• Dependency and Indemnity Compensation (DIC) from the VA is not taxable at the federal or state level

If the deceased was both a military retiree and a Delaware state employee — which is not unusual for National Guard members who also worked in state government — the surviving family must interact with both the VA/SBP system and the Delaware Office of Pensions. The pension survivor benefit calculation from the Office of Pensions (Form SOP-1) is entirely separate from SBP.

Dependency and Indemnity Compensation (DIC)

DIC is a federal tax-free monthly benefit paid to surviving spouses of service members who died in the line of duty or from a service-connected condition. As of 2026, the base DIC rate is $1,562.74 per month. A surviving spouse who is housebound or needs aid and attendance receives additional amounts.

The OVS can help survivors file VA Form 21P-534EZ to claim DIC. Filing promptly matters: DIC does not backdate to the date of death in most cases — it begins with the month after the VA receives the claim.

DD-214: The Document That Unlocks Everything

Nearly every veteran benefit — cemetery eligibility, DIC, SBP continuation, burial honors, and the disabled veteran property tax credit — requires a copy of the veteran's DD-214 (Certificate of Release or Discharge from Active Duty). If the family cannot locate the original, request a copy from the National Archives via SF-180. The OVS can assist with this request.

Delaware funeral homes authorized to provide military honors will also need the DD-214 to coordinate the flag presentation and burial ceremony through the appropriate military branch.

If the estate is complex — involving both VA benefits, state pension survivor options, and property tax applications — the Delaware Survivor Benefits Navigator covers all three agencies with county-specific checklists and the exact forms required at each step. Get the complete guide here.

Key Contacts

• Delaware Office of Veterans Services: Wilmington office, (302) 739-2792
• Delaware Veterans Memorial Cemetery (Bear): (302) 834-8046
• VA Regional Office (Philadelphia, covers Delaware): 1-800-827-1000
• Delaware Office of Pensions (state employees): (302) 739-4208

The OVS holds veterans service officers who can sit with you, review what was elected at retirement, and tell you which forms need to go where. Use them. The alternative is spending weeks on hold with agencies that do not coordinate with each other.

Delaware's veteran survivor benefits require action across multiple simultaneous tracks. The Delaware Survivor Benefits Navigator maps the full sequence — VA, state pension, property tax, and probate — so nothing falls through the cracks. Access the complete navigator here.

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