[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR12.3]

[Page 549-550]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 12_DISPOSITION OF VETERAN'S PERSONAL FUNDS AND 
 
Sec.  12.3  Deceased veteran's cases.

    (a) Immediately upon the death or the absence without leave of any 
beneficiary at a field facility, as defined in Sec.  12.0(b), a survey 
and inventory of the funds and effects of such beneficiary will be taken 
in the following manner:
    (1) If the death or absence without leave occurred during 
hospitalization, a complete inventory (VA Form 10-2687, Inventory of 
Funds and Effects) will be made of all personal effects (including those 
in the custody of the hospital, jewelry being worn by the deceased 
person, or jewelry and other effects in pockets of clothing he or she 
may have been wearing) and all funds found and moneys on deposit in 
Personal Funds of Patients. In the case of death of incompetent veterans 
after November 30, 1959, the inventory will be completed to show 
separately those funds deposited by the Department of Veterans Affairs 
in Personal Funds of Patients which were derived from gratuitous 
benefits under laws administered by the Department of Veterans Affairs. 
For purpose of determining the source of funds, expenditures from the 
account will be considered as having been made from gratuitous benefits, 
not to exceed the extent of deposits of such benefits. In the event 
death occurred during other than official working hours, the officer of 
the day and/or a representative of Nursing Service will collect and 
inventory all funds and personal effects on the person of the deceased 
beneficiary and on the ward, will carefully safeguard such property and, 
upon completion of the tour of duty, will turn the funds and effects 
over to the properly designated employees.
    (2) If the death or absence without leave occurred while the 
beneficiary was assigned to a domiciliary section, or while receiving 
hospitalization and at time of death or absence without leave any 
effects are in the section, a like inventory will be made by 
representatives of the Chief, Domiciliary Operations and/or Medical 
Administration Division.
    (3) The inventory report will be executed in triplicate, original 
and two copies. All will be signed by the employee making the inventory, 
and disposed of as provided for in pertinent procedural instructions.
    (4) Personally owned clothing or other effects (such as tooth 
brushes, false teeth not containing gold, etc.), which are unserviceable 
by reason of wear or tear or insanitary condition, and clothing that had 
been supplied by the Government, will not be included in this inventory; 
instead, the unserviceable personally owned articles will be listed on a 
separate list, with their condition briefly described, and their 
disposition recommended in a separate report to the facility head. The 
facility head, if approving this recommendation, will order destruction 
or utilization in occupational therapy, or as wipe rags, etc., of such 
unserviceable articles and, when they are so destroyed or utilized, will 
have entered

[[Page 550]]

on the papers the date and nature of the disposition. The completed 
papers will then be placed in the correspondence file of the 
beneficiary. Clothing that had been supplied by the Government will be 
reconditioned if possible and returned to stock for issue to other 
eligible beneficiaries. When Government-owned clothing cannot be 
reconditioned it will be disposed of.
    (5) When the nearest relative requests that the deceased beneficiary 
be clad for burial in clothing he or she personally owned, instead of 
burial clothing to be supplied under the contract for mortuary services, 
such request will be honored. A receipt in such cases will be obtained 
from the undertaker, specifying the articles of clothing so used. 
Adjustment of the undertaker's bill in the case will correspondingly be 
made.
    (6) In accomplishing such inventories, detailed description will be 
given of items of material value or importance, for example:

Watch--Yellow metal (make, movement, and case number, if available 
without damage to watch).
Ring--Yellow metal (probably gold-plated or stamped 14-K., setting if 
any).
Discharge certificate.
Adjusted service certificate (number).
Bonds or stocks (name of company, registered or nonregistered, 
identifying number, recited par value, if any).
Bank books or other asset evidence (name of bank or other obligor, 
apparent value, identifying numbers, etc.).
Clothing (brief description and statement of condition). Etc.

    (b) Upon completion of the survey and inventory, the effects will be 
turned over to the designated employee for safekeeping. Any funds found 
in excess of $100 which apparently were the property of the deceased 
will be turned over to the details clerk and delivered immediately to 
the agent cashier, who shall deposit same in the account ``Personal 
Funds of Patients''. Unendorsed checks other than Treasury checks and 
funds not in excess of $100 will be considered personal effects and not 
funds and will be handled accordingly.

[13 FR 7128, Nov. 27, 1948, as amended at 25 FR 1613, Feb. 25, 1960; 29 
FR 17904, Dec. 17, 1964; 36 FR 5911, Mar. 31, 1971]