Death gratuity for Marines now splits 10 ways - Marine Corps News | News from Afghanistan & Iraq - Marine Corps Times

Death gratuity for Marines now splits 10 ways

JACKSONVILLE, N.C. — Marines can now designate their death gratuity to as many as 10 beneficiaries, easing the burden on families who lose a loved one.

The one-time, nontaxable, $100,000 entitlement may be split into $10,000 increments “to any person(s) of their choosing,” according to MarAdmin message 371/08.

The gratuity, a payment to the survivors of troops who die while on active duty, was originally limited to one surviving family member, beginning with the spouse. Payment to minors was placed in trust until they turned 18.

That sometimes created a financial hardship for certain family members, usually grandparents, who assumed custody of surviving military children.

In May 2007, Congress allowed service members to split the gratuity in half. The money is generally paid within 72 hours of the Marine’s death.

The death gratuity is separate from Servicemembers’ Group Life Insurance, a voluntary plan where Marines pay a monthly premium and can designate up to $400,000 to anyone they choose.

Marines are not required to make any changes, in which case the gratuity payment would go to the primary next of kin — spouse first, then children, then next of kin such as parents or siblings.

Marines who designate additional beneficiaries must complete Defense Department Form-93 (Record of Emergency Data).

If a Marine dies before updating the form, the existing beneficiaries will “still serve as a contingent when there is no surviving spouse or children,” according to the message. Changes will be effective in October.

Created in 1908, the death gratuity was a mere $3,000 for decades until, in 1991, lawmakers began to sporadically raise the entitlement, to $6,000, then again in 2003 to $12,000. Congress raised the payment to $100,000 in the fiscal 2006 Defense Authorization Act.

Service members qualify for the gratuity if they die while on active duty, while performing authorized travel to or from active duty, or are reservists who die while on inactive-duty training. The gratuity also applies to service members who die within 120 days after discharge or release from active or inactive duty if the death results from an injury or disease incurred or aggravated during duty, or travel to or from the duty.