To amend title 38, United States Code, to provide that the effective date for discontinuance of compensation and pension paid by the Secretary of Veterans Affairs shall be the date on which the recipient dies, rather than the last day of the preceding month, in the case of a veteran with a surviving spouse, and for other purposes.

Provides that the effective date for discontinuance of veterans' disability compensation and veterans' pension paid by the Secretary of Veterans Affairs shall be the date on which the recipient dies (currently the last day of the month preceding death) in the case of a veteran with a surviving spouse. Requires payments of such compensation to be made to the surviving spouse.

Provides that the effective date for the award of dependency and indemnity compensation for which application is received within one year from the date of the veteran's death shall be the day following the date of death in the case of a surviving spouse.