The VA keeps sending letters saying they are working on it, We have been left with bills of around 18000.00. They told us the benefits will revert back one year because that is when we applied. Now that he has passed on will he receive this money to pay his bills.

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I'm sorry about your dad. That's so sad. Many of us have been through similar things.
I think the money will go to the estate. I'm not an expert on this, but I'd say it's likely. That's only fair as the bills are still owed. You can call the VA and ask, though I know that's means menus and wait time, but it may be worth your time.
Take care,