The Department of Defense provides a one-time lump sum Death Gratuity of $100,000 to the primary next of kin of a service member who dies while on active duty. Its purpose is to help the survivors in their readjustment and to aid them in meeting immediate expenses incurred. The gratuity is paid by the last military command of the deceased. 

A Service member can designate up to ten individuals, without regard to relationship, and allocate amounts in 10% increments to each designated individual listed. If the member does not wish to designate a beneficiary for the payment of death gratuity, enter "None," or if the full amount is not designated, the payment or balance will be paid in this order:

• The Soldier's lawful surviving spouse
• If no spouse, the child or children of the Soldier, regardless of the age or marital status in equal shares
• If no spouse or children, the parents, or brothers and/or sisters or any combination as designated by the Soldier
• Natural father or mother
• Father or mother through adoption, in equal shares
• Natural brothers or sisters
• Any person who acted as guardian for not less than one year at any time before the deceased member's entry into active service.
• Brothers and sisters of half-blood and those through adoption
• Surviving parents, in equal shares
• Surviving brothers and sisters, in equal shares.

Note: If the retiree dies within 120 days of separation their beneficiary may be entitled to the Death Gratuity if VA finds their death service connected. DFAS will then pay the Death Gratuity out to the beneficiary.

Application for the gratuity is made through the appointed Casualty Assistance Officer representing the next of kin. The claim form required to apply for this benefit is DD Form 397, Claim Certification and Voucher for Death Gratuity Payment. Payment is paid as expeditiously as possible.

• The gratuity is paid free of any federal or state income tax liability

• Only one gratuity payment is authorized to the designated next of kin

• The gratuity cannot be designated for payment to the estate of the deceased

For more information, please visit:

Office of the Secretary of Defense, Military Compensation website:
https://militarypay.defense.gov/Benefits/Death-Gratuity/

Defense Finance and Accounting Service (DFAS) Arrears of Pay:
https://www.dfas.mil/RetiredMilitary/provide/aop/

Casualty and Mortuary Affairs Operations Division (CMAOD)Survivor Resources Frequently Asked Questions:
https://www.hrc.army.mil/content/CMAOD%20Survivor%20Resources%20Frequently%20Asked%20Questions