She needs to talk to her attorney. How can someone act as a fiduciary when the beneficiary is deceased?
If the widow is still receiving her husband's VA checks, there are bigger problems than how to title the account. A veteran's benefits end with his or her death. On the other hand, if she is actually receiving survivor's benefits, she can receive them in her own right, and there should be no problem having the account in her name.
Plainly put, if the check or ACH payment is in the name of the deceased, the bank should not be a party to receiving it.