settlement under any one of the options shall be in full and complete discharge of all liability. (f) Upon filing of a valid application and submission of the required proof by the beneficiary first entitled to payment of insurance granted under section 722 (b), the monthly installments without interest, which have accrued since the death of the insured (the first installment being due on the date of death of the insured) and the monthly installments which thereafter become payable shall be paid to the beneficiary or beneficiaries entitled. Upon due proof of death of the first beneficiary after payment has been made of at least one installment of insurance granted under section 722(b), the remaining unpaid monthly installments certain in the same amount shall be paid to the person or persons next entitled as beneficiary until all installments certain have been paid. (g) The right of any beneficiary to payment of any installments shall be conditioned upon his or her being alive to receive such payment. No person shall have a vested right to any installment or installments of insurance granted under section 722(b) and no installment of such insurance shall be paid to the heirs, creditors, or legal representatives as such of the insured or of any beneficiary except as provided in § 8.60. If no person within the permitted class of beneficiaries survives to receive the insurance or any part thereof, no payment of the unpaid installments shall be made. (h) All payments of National Service life insurance granted under section 722 (b) shall be made directly from the Service-Disabled Veterans' Insurance Fund in the Treasury of the United States. [24 F.R. 582, Jan. 27, 1959] Part 12-Disposition of Veteran's Personal Funds and Effects DISPOSITION OF VETERAN'S PERSONAL FUNDS AND EFFECTS ON STATION UPON DEATH, OR DISCHARGE, OR UNAUTHORIZED ABSENCE, AND OF FUNDS AND EFFECTS FOUND ON STATION UNDER PUBLIC NO. 734, 75TH CONGRESS (38 U. S. C. 16j) Sec. 12.4 Disposition of effects and fund to designate; exceptions. [Amended] Sec. 12.9 Rights of designate; sales instruction; transportation charges. [Amended] § 12.4 Disposition of effects and fund to designate; exceptions. (b) When authorized by the Manager or his designated representative, the effects will be delivered or shipped to the designate. 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, either to the Manager in advance or to the carrier if it accepts the shipment without full prepayment of charges. There will be no obligation on the Government, initially or otherwise, to pay such expenses in excess of $25. [Paragraph (b) amended, 23 F. R. 5, Jan. 1, 1958] § 12.9 Rights of designate; sales instruction; transportation charges. (a) Upon death of a veteran admitted as such to a field station, the Manager or his designated representative will cause notice (parts I and V of VA Form 101171) to be sent to the designate: Provided, however, That if the Manager or his designated represenative has information of the death of the primary designate, notice shall be sent to the alternate designate and all the provisions of the regulations in this part respecting the designate will be deemed to apply to the alternate. If the designate is a minor or a person known to be incompetent, delivery of the funds or effects will be made only to the designate's guardian or custodian upon qualification. The right of the designate to receive possession ceases when he refuses to accept delivery or if he fails to respond within 90 days after VA Form 10-1171 was mailed. When the right of a designate ceases, VA Form 10-1171 will be forwarded immediately to the alternate designate, whose rights then become identical with those forfeited by the first designate, and the rights of the alternate designate shall terminate at the expiration of 90 days after the VA Form 101171 was mailed to him. Delivery will not be made to a designate until he submits a signed statement to the effect that he understands that the delivery of such funds and effects constitutes a delivery of possession only and that such delivery is not intended to affect in any manner the title thereto. Such notice shall fully identify the decedent and state the fact that he designated the addressee to receive possession of such property; that the right to receive possession thereof does not affect the ownership but that the designate will be responsible for the ultimate disposition thereof to those who, under applicable law, are entitled to the decedent's property; and will request prompt advice as to whether the designate will accept such property and that, if he will, he furnish shipping instructions, upon receipt of which the property will be shipped at the expense of the Government. However, prior to dispatching such notice, it will be definitely determined that the shipping expense will not exceed $25. If such expense will exceed $25, the excess cost will be ascertained, and the notice will include a statement of the amount of such excess shipping cost with request that the amount thereof be remitted at the time shipping instructions are furnished. In estimating the shipping expense, it will be assumed that shipment to the designate will be to the same address as that to which the notice is sent. Each notice, however, shall contain a statement that in no event will the Government pay shipping expense in excess of $25. The notice will include a copy of the inventory of the property which it is proposed to deliver to the designate. (b) Upon receipt of appropriate shipping instructions, the property will be shipped, transportation charges prepaid, by mail, express, or freight, as may be appropriate under the circumstances and most economical to the Government. The expense of such shipment, chargeable to the Government, in no case to exceed $25, is payable the same as other administrative expenses of the Veterans Administration. [Paragraphs (a) and (b) amended, 23 F. R. 5, Jan. 1, 1958] 13.225 When Veterans Administration physicians may testify in lunacy proceedings; employment of private physicians. [Amended] Costs for appointment of guardians; when authorized at Veterans Administration expense. [Amended] Chief Attorneys delegated power to authorize costs incident to appointment of guardians. [Revised] Court costs; what may be included as. [Amended] 13.228 13.229 13.231 Determination as to correctness of costs. [Revised] 13.235 When Chief Attorney may prepare appointment papers or furnish advice. [Revised] 13.236 Chief Attorney to authorize costs for removal of guardians. [Revised] 13.260 Determination of need for institutional award and notification to adjudication agency. [Amended] 13.262 Limitation of wards to individual guardian. [Amended] 13.276 Natural guardians; in the insular and territorial possessions of the United States and in foreign countries. [Amended] SUPERVISION OF CUSTODIANS, GUARDIANS, ETC., AND CHIEF OFFICERS OF INSTITUTIONS REMOVAL AND DISCHARGE OF GUARDIANS 13.363 Grounds for removal. [Amended] 13.365 Authority of Chief Attorney to appear in State courts for the Administrator. [Revised] 13.369 Authority of Chief Attorney to order advertising or publication of notices in guardianship or commitment proceedings. [Revised] LEGAL SERVICES (OTHER THAN GUARDIANSHIP) 13.402 Domestic relations questions, restoration to rolls, and conflict of laws. [Amended] § 13.0 Introduction. The regulations in this part are issued pursuant to section 1502, Public Law 85-56. They set forth the policy of the Administrator of Veterans Affairs applicable to recognition of all types of fiduciaries, and the requirements with respect to administration by such fiduciaries of estates of minor and mentally ill beneficiaries derived from payments of any monetary benefit under the acts administered by the Veterans Administration. The duties, the delegations of authority, and all actions required of the Chief Attorney set forth in §§ 13.0 to 13.369, inclusive, are to be performed under the direction of, and authority vested in, the Manager of the field station. [23 F. R. 8397, Oct. 30, 1958] Prior Amendments 1958: 23 F. R. 1729, Mar. 13, 1958. FIELD EXAMINATIONS § 13.50 Types of field examinations. Field examinations will be of the following types: Examinations in guardianship and custodianship cases; examinations of offenses against the Federal laws; examinations of accidents alleged to be due to negligence of Veterans Administration employees and accidents causing damage to Veterans Administration property (this refers only to torts wherein a liability arises against or in favor of the Government); examinations into claims cases, including compensation, indemnity compensation, ad justed compensation, pensions, vocational rehabilitation and education; educational assistance allowance or special training allowance; retirement pay; insurance and indemnity cases; guaranty or insurance of loans, and other benefits under the Servicemen's Readjustment Act of 1944, as amended; examinations directed by the Manager on general administrative matters; and examinations requested by a United States district attorney or other representative of the Department of Justice, in civil and criminal cases. [23 F. R. 1729, Mar. 13, 1958] RECOGNITION OF LEGAL CUSTODIAN, APPOINTMENT OF A GUARDIAN FOR A MINOR OR MENTALLY INCOMPETENT BENEFICIARY, AND THE MAKING OF INSTITUTIONAL AWARDS § 13.201 Recognition of wife of incompetent veteran. Section 1502 (e), Public Law 85-56, provides that in case of any incompetent veteran having no guardian, payment of compensation, pension or retirement pay may be made, in the discretion of the Administrator, to the wife of such veteran for the use of the veteran and his dependents. Cases coming within this section of the law will be investigated by the Chief Attorney to determine whether the wife is properly qualified to administer the funds payable, whether she will agree to use the funds for the benefit of the veteran and his dependents, and whether all conditions justify payment of the compensation, pension, or retirement pay to the veteran's wife; or whether, in the best interests of the veteran and his dependents, a guardian should be appointed to receive and administer the funds payable. If the Chief Attorney determines that payments shall be made to the wife, a complete report will be forwarded to the adjudication agency accompanied by the evidence disclosing the facts, with a recommendation that payments be made to the wife. If the Chief Attorney determines that the facts justify the appointment of a guardian, he will take action promptly to effect the appointment and will forward the evidence thereof, together with his certification as to the legality of the appointment and adequacy of bond, to the adjudication agency. For the purpose of determining whether the funds paid to the wife are being applied as intended and whether the payments should continue to the wife, or whether in the interests of the veteran and his dependents action should be taken to have a guardian appointed, or whether the veteran has recovered and should be rerated as to competency, a social survey will be accomplished each year. [23 F. R. 1729, Mar. 13, 1958; 23 F. R. 2216, Apr. 4, 1958] § 13.205 Amount of benefits payable by Veterans Administration to legal custodian or custodian-in-fact; payments to bonded officer of Indian reservations. When a claimant under legal disability is found entitled to any benefit payable by the Veterans Administration, the accrued amount of which at the time of the execution of VA Form VB 2-555, Certificate of Legal Custody, is $700 or less, or the monthly rate of which is $70 or less, or if the finding is in favor of two or more claimants under legal disability and the accrued amount is $1,000 or less, or the combined monthly rates for two claimants amount to $100 or less, for three claimants $130 or less, plus monthly payments of $25 for each additional claimant, and no legal guardian or committee has been appointed, the awards shall be made upon proper finding to the person legally vested with the responsibility or care of such claimant or claimants: Provided, That the best interests of the claimant or claimants will be served thereby and the legal custodian is properly qualified. Discretion is vested in the Chief Attorney to exceed these limitations when the circumstances justify use of all of the accrued and monthly benefits payable for the support and/or education of the beneficiary. The limitations in this introductory paragraph are not to be applied in cases in which additional dependency and indemnity compensation in behalf of helpless children, the special allowance, the educational assistance allowance, or the special training allowance, are payable pursuant to §§ 4.449, 4.485, 21.3052, and 21.3229 of this chapter, respectively. [Introductory text amended, 22 F. R. 2043, Mar. 28, 1957] § 13.207 Recognition of legal custodian. (a) Section 1502 (a), Public Law 85-56, provides, in part, as follows: Where no guardian, curator, or conservator of the person under a legal disability has been appointed under the laws of the State of residence of the claimant, the Administrator shall determine the person who is other wise legally vested with the care of the claimant or his estate. (b) This law provides that the Administrator shall determine the person legally vested with the care of the claimant or his estate. This determination is delegated to the Chief Attorney inasmuch as the question is legal and dependent upon State statutes or court decrees. A study of the State statutes is necessary to determine the person who is legally vested with the care of the claimant. The natural parent is usually recognized as being legally responsible for the care of a minor child unless such relationship has been disturbed by judicial decree. Reference should be made to the State statutes to determine a stepparent's legal responsibility, both during the life of the natural parent and after death of such natural parent. If the natural parent (female) has remarried, some jurisdictions have placed a responsibility upon the stepfather to care for and support the minor children of his spouse, and if such responsibility exists, protective measures must be taken to assure that the Government funds appropriated for the benefit of the minor are actually used for this minor, in addition to the benefits due from the stepparent. When the status of loco parentis exists, the person standing in that relationship to the claimant, or the person vested with custody by judicial decree, may be recognized as legal custodian. Extreme care will be taken in considering a custodial award for an incompetent. (c) In view of the responsibility that is placed upon the Chief Attorneys, the greatest possible degree of care must be exercised in determining such matters in connection with possible custodianship cases. [23 F. R. 1729, Mar. 13, 1958] § 13.210 Bond of custodian. The Chief Attorney, or the Chief Benefits Director, or his designee, may require the person to be recognized as legal custodian of a beneficiary or as custodian-in-fact under the provisions of section 1502, Public Law 85-56, and § 13.205 (a) to furnish a corporate surety bond before payments are made to such person on behalf of the claimant. Said bond shall run to the Administrator of Veterans affairs for the use and benefit of (name of ward). When the benefits to be paid equal the maximum amounts set forth in § 13.205, such bond will be § 13.217 Certificate of custody authority for payment. The certificates of custody issued under the provisions of § 13.211 will be authority for payment to the person designated therein as custodian only while there is no legal guardian, curator, or conservator, and while the other requirements of custody and responsibility exist; except that in cases falling under section 1502 (d), Public Law 85-56, the certificate authorized by the provisions of § 13.205 (a) will be authority for payment to the custodian-infact for the period stated therein, unless it is determined that payments may be resumed to the fiduciary prior to the expiration of such period. [23 F. R. 1729, Mar. 13, 1958] § 13.220 Chief Attorney to sign certificates required by Uniform Veterans' Guardianship Act or similar State legislation, as representative of the Administrator. In accordance with the authority granted to the Administrator under sections 210 and 212, Public Law 85-56, Chief Attorneys are hereby authorized to sign, as representative of the Administrator, certificates required by the Uniform Veterans' Guardianship Act, or similar State legislation adopted in lieu thereof. [23 F. R. 1729, Mar. 13, 1958] § 13.222 Policy in recognizing banks and trust companies. The Chief Attorney, before recognizing State banks and trust companies, will be assured that the financial responsibility of such bank or trust company is without question. In all cases of closing of banks acting as guardians, or closing of banks in which guardianship funds are on deposit, a report will be submitted to the Chief Benefits Director. Such report will include information as to the action taken to safeguard the interests of the ward or wards. [23 F. R. 1729, Mar. 13, 1958] COMMITMENT OF MENTALLY INCOMPETENT proceedings; employment of private physicians. (e) (1) (i) For preliminary examination, the fees and expenses prescribed by the approved State fee schedules or, in States which do not have such schedules, the fees and expenses prescribed by the "Guide for Charges for Medical and Ancillary Services," Department of Medicine and Surgery Manual M-1, Part 1, Appendix A, Change 9, will be authorized. [Subdivision (1) amended, 23 F. R. 1730, Mar. 13, 1958] § 13.227 Costs for appointment of guardians; when authorized at Veterans Administration expense. Costs for appointment of guardians pursuant to section 1502 (c), Public Law 85-56, which applies to all benefits payable by the Veterans Administration, will be authorized only in cases wherein: (a) Benefits payable are small and such costs would unduly deplete the estate. Chief Attorneys may authorize costs incident to the appointment of a guardian in any case wherein the total amount of benefits payable at date of award on which request for appointment of guardian is based does not exceed $2,000. Costs will not be authorized or paid in any case if the proposed guardian is not satisfactory. [Introductory text and paragraph amended, 23 F. R. 1730, Mar. 13, 1958] (a) § 13.228 Chief Attorneys delegated power to authorize costs incident to appointment of guardians. Subject to the provisions of § 13.227, Chief Attorneys are hereby delegated authority to authorize incurrence of costs incident to the appointment of guardians and payment thereof. The necessary legal expenses in connection with the appointment of a guardian do not include the premium on the fiduciary's bond. Such premium is an administrative expense which must be borne by the guardian or by the estate, depending upon the provisions of the State law. [23 F. R. 1730, Mar. 13, 1958] § 13.229 Court costs; what may be included as. In all cases where the Veterans Administration pays the expenses incident to the appointments of guardians under the provisions of § 13.227, the |