Fair Treatment for Families of Veterans Act This bill changes the effective date for reductions or discontinuances of Department of Veterans Affairs dependency and indemnity compensation by reason of the death of a payee from the last day of the month before death to the last day of the month of death. A veteran's surviving spouse who receives both dependency/indemnity compensation and service- or non-service-connected disability/death payments for the month of the veteran's death shall be entitled to the greater of the two payments.