[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: 38CFR6.7]

[Page 492]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 6_UNITED STATES GOVERNMENT LIFE INSURANCE--Table of Contents
 
Sec. 6.7  Claims of creditors, taxation.

    (a) Effective January 1, 1958, payments of insurance to a 
beneficiary under a United States Government life insurance policy shall 
be subject to levy for taxes due the United States by such beneficiary.
    (b) The provisions of 38 U.S.C. 5301(b) which entitle the United 
States to collect by setoff out of benefits payable to any beneficiary 
under a United States Government life insurance policy do not apply to 
dividends being held to the credit of the insured for the payment of 
premiums under the provisions of section 1946 of title 38 U.S.C.

(Authority: 38 U.S.C. 5301)

[23 FR 681, Feb. 1, 1958, as amended at 24 FR 15, Jan. 1, 1959; 24 FR 
582, Jan. 27, 1959; 46 FR 57043, Nov. 20, 1981. Redesignated and amended 
at 61 FR 29024, 29025, June 7, 1996]

                           Optional Settlement