[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: 38CFR12.4]

[Page 550-551]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 12_DISPOSITION OF VETERAN'S PERSONAL FUNDS AND 
 
Sec. 12.4  Disposition of effects and funds to designee; exceptions.

    (a) Upon authorization by the facility head or his or her designated 
representative, all funds, as defined in Sec. 12.0 (except funds on 
deposit in Personal Funds of Patients derived from gratuitous benefits 
under laws administered by the Department of Veterans Affairs and 
deposited by the Department of Veterans Affairs where the veteran was 
incompetent at time of death), and effects will be delivered or sent to 
the designee of the deceased veteran if request therefor be made after 
death and within 90 days following the mailing of notice to such 
designee (see Sec. 12.9(a)), unless:
    (1) The executor or administrator of the estate of the deceased 
veteran shall have notified the facility head or his or her designated 
representative of his or her desire and readiness to receive such funds 
or effects, in which event the facility head or his or her designated 
representative will authorize delivery of all funds and effects to such 
executor or administrator upon receipt of appropriate documentary 
evidence of his or her qualifications and in exchange for appropriate 
receipts, or
    (2) An heir capable of inheriting the personal property of the 
veteran makes claim for the funds and effects prior to delivery to the 
designee.
    (3) Subsequent to the naming of a designee the veteran became 
incompetent and his or her guardian revoked such designation, in which 
event the facility head or his or her designated representative will 
deliver all funds and effects to his guardian in exchange for 
appropriate receipts subject to the limitation contained in paragraph 
(d) of this section, or
    (4) Designee was the wife (or husband) of the veteran at the time of 
designation, and information at the disposal of the field facility 
indicates that she (or he) was thereafter divorced and the veteran was 
incompetent at or subsequent to the time of divorce, or
    (5) Notwithstanding there is a designee, it is probable that title 
would pass to the United States under the provisions of Sec. Sec. 12.19 
to 12.23 issued pursuant to 38 U.S.C. 5502(e) and 38 U.S.C. 8520(a), or

[[Page 551]]

    (6) The facility head or his or her designated representative 
determines that there is reasonable ground to believe that the transfer 
of such possession to the designee probably would be contrary to the 
interests of the person legally entitled to the personal property, or 
there are any other special circumstances raising a serious doubt as to 
the propriety of such delivery to the designee.

In any case in which the facility head does not deliver the funds and 
effects, because of the provisions of paragraphs (a)(3), (4), and (5) of 
this section, he or she will develop all facts and refer the matter to 
the Chief Attorney of the regional office having jurisdiction over the 
area where the hospital is located, for advice as to the disposition 
which legally should be made of such funds and effects.
    (b) When authorized by the facility head or his or her designated 
representative, the effects will be delivered or shipped to the 
designee. If shipped at Government expense, the shipment shall be made 
in the most economical manner but in no case at a cost in excess of $25. 
If such expenses will exceed $25, the excess amount shall be paid by the 
consignee to the facility head in advance. There will be no obligation 
on the Government, initially or otherwise, to pay such expenses in 
excess of $25.
    (c) When possession of funds or effects is transferred to a 
designee, the attention of the designee will again be directed to the 
fact that possession only has been transferred to him or her and that 
such transfer does not of itself affect title thereto and that such 
designee will be accountable to the owner of said funds and effects 
under applicable laws.
    (d) Upon receipt from the proper Chief Attorney of an appropriate 
certification that the guardianship was in full force and effect at the 
time of the veteran's death and that the guardian's bond is adequate, 
funds (other than funds deposited by the Department of Veterans Affairs 
in Personal Funds of Patients derived from gratuitous benefits under 
laws administered by the Department of Veterans Affairs) and effects of 
an incompetent veteran may be immediately delivered or sent to such 
guardian, inasmuch as the guardian had a right to possession, and he or 
she will be accountable therefor to the party entitled to receive the 
decedent's estate. If, however, it appears probable that decedent died 
without a valid will and left no person surviving entitled to inherit, 
the funds will not be paid to the former guardian but will be disposed 
of as provided in Sec. 12.19(a). The effects will be sold, used, or 
destroyed, at the discretion of the facility head or his designated 
representative.

[25 FR 1613, Feb. 25, 1960, as amended at 29 FR 17904, Dec. 17, 1964]