T. F. Daley, Associate General Counsel for Legislation___ 1798, 1838, 1839 Meyer Lipps, Associate General Counsel for Legal Services. Weaver, Hon. Phil. Whitener, Hon. Basil L 1821-1823 1827, 1828, 1834, 1835 1796-1802, 1813, 1818-1821, 1827-1829, 1834, 1835, 1837, 1838 ESTATES OF INCOMPETENT VETERANS THURSDAY, JULY 25, 1957 HOUSE OF REPRESENTATIVES, Washington, D. C. The committee met, pursuant to call, at 10 o'clock in room 356 Old House Office Building, the Honorable Olin E. Teague (chairman) presiding. The CHAIRMAN. The committee will come to order. The committee has for consideration H. R. 72, a bill to amend section 21 of the World War Veterans' Act, 1924, to provide for the disposition of certain benefits which are unpaid at the death of the intended beneficiary. Without objection, I shall insert in the record at this point the letter I addressed to all Members of the House inviting them to testify, together with H. R. 72 in the various forms which it has taken since introduction, VA regulations on apportionment, court decisions on this question, and correspondence with AMVETS, Disabled American Veterans, and the Administrator of Veterans' Affairs. (The documents referred to follow:) HOUSE OF REPRESENTATIVES, COMMITTEE ON VETERANS' AFFAIRS, Washington, D. C., July 18, 1957. DEAR COLLEAGUE: On July 12, the House recommitted to the Committee on Veterans' Affairs for further study, H. R. 72, which sought to restrict the transfer of estates of incompetent veterans derived from compensation and pension to distant relatives of the veteran who would not have been eligible to receive benefits if the veteran had been killed in battle. With the view to providing such further study, I am scheduling hearings on this subject for Thursday, July 25, at 10 a. m., in the committee room, room 356, Old House Office Building. I am extending a general invitation to all Members who are interested in this problem to come before the Committee on Veterans' Affairs and let us have the benefit of their thinking on this question. I feel that it is particularly incumbent upon those who participated in the debate and who took exception to the approach of the committee to present their views. With much being said on both sides of the aisle about the need for Government economy, it seemed to the Committee on Veterans' Affairs when it reported H. R. 72 originally that here was a field in which a sizable savings could be accomplished without adversely affecting the rights of any veteran. No accurate estimate could be made as to the amount of actual savings which might accrue if restrictions were placed in this program. Suffice to say that the savings would be considerable probably running into millions of dollars. Under existing laws, payments are not made to brothers, sisters, nieces, nephews, cousins, and nondependent parents of a veteran, either as death compensation or pension or as dependents of the veteran. Yet, these benefits are being permitted to pass to these classes of kinsmen through inheritance of estates of incompetent veterans where such estates are built by compensation 1717 and pension payments. The parents of a son killed in battle who have an annual income of over $2,400 do not receive any compensation from the Federal Government. The child of a veteran killed in battle may receive compensation only to age 18, at which time compensation payments are discontinued. Yet, it is being argued that grandchildren, brothers, sisters, and distant kinsmen should be permitted to continue to receive compensation and pension benefits passed to them through inheritance. Under existing laws governing the estates of incompetent veterans, a veteran without dependents in a Veterans' Administration hospital or domiciliary may receive his pension or compensation only so long as his estate does not exceed $1,500. When this amount has been reached, payments are cut off and will not be resumed until the estate has been reduced to $500. This provision applies solely to a veteran in a Veterans' Administration hospital or domiciliary without dependents. If the veteran is in a State, county, or private institution, the estate builds without restriction, thus we have a discriminatory situation among veterans. Where a veteran does have dependents and is incompetent, the Veterans' Administration, under existing law, has authority to apportion a part of his compensation or pension for the benefit of his dependents. This feature is one which has led to the building of large estates. For example, a veteran rated permanently and totally disabled for service-connected causes is eligible for monthly compensation of $181. If he should have a dependent mother, the Administrator of Veterans' Affairs might allot $100 a month for her care. The balance of his monthly compensation, or $81, would then accrue into his estate and, upon his death, would be payable to his estate. This would mean that distant relatives-cousins, nieces, nephews, uncles, and aunts-could receive it since most parents predecease their children. Compensation and pension payments to the incompetent veteran with no dependents stops building at $1,500; therefore, his brothers, sisters, or other relatives receive very little on his death as compared to the estate of a veteran who for a period of time had a dependent. Here again a discriminatory situation between veterans exists. Many Members have expressed to me, following the action of the House on July 12, a desire for the committee to reconsider this matter and give the House another opportunity to vote. It is for this reason that the hearings have been set for next Thursday, July 25. I extend an invitation to all interested Members to come and testify before the full committee to to give us the benefit of your thinking on this subject. If you desire to appear, it will be helpful if you will advise the committee office on extension 336 or 792. You may file a statement setting forth your views if you are unable to appear. Very truly yours, OLIN E. TEAGUE, Chairman. H. R. 72, 85TH CONGRESS, 1ST SESSION, AS INTRODUCED A BILL To amend section 21 of the World War Veterans' Act, 1924, to provide for the disposition of certain benefits which are unpaid at the death of the intended beneficiary Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) paragraph (3) of section 21 of the World War Veterans' Act, 1924 (38 U. S. C. 450), is amended by striking out all that follows "or, in the event of his death," and inserting the following: "to the survivor of the beneficiary first listed below: "(A) The spouse of the deceased; "(B) The children (as defined in paragraph VI of Veterans Regulation Numbered 10, disregarding any part thereof relating to age or marital status) in equal parts; "(C) The dependent mother or father (as defined in paragraph VII of Veterans Regulation Numbered 10), or, if he has both a dependent mother and a dependent father, to them in equal shares. If there are no survivors in the classes listed above, the balance so held shall revert to the Treasury to the credit of the current appropriation or appropriations from which made. Any funds in the hands of a guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate, derived from automatic or term insurance payable under said Acts, which under the law of the State wherein the beneficiary had his last legal residence, would escheat to the State, shall escheat to the United States and shall be returned by such guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate, or by the personal representative of the deceased beneficiary, less legal expenses of any administration necessary to determine that an escheat is in order, to the Administrator of Veterans' Affairs. Such funds shall be deposited in the Treasury to the credit of the current appropriation (as determined by the Administrator of Veterans' Affairs) from which such funds were appropriated." (b) Such section 21 is further amended by adding at the end thereof the following: "(5) Where a beneficiary dies, any funds or property in the hands of a person who is a guardian, curator, conservator, chief officer of an institution in which the beneficiary was an inmate, or person legally vested with his care or the care of his estate, which funds or property were derived from payments of compensation, pension (including pension under private Acts), emergency officers' retirement pay, servicemen's indemnity, or retirement pay made to such person on behalf of the beneficiary before or after the date of enactment of this paragraph by the Administrator of Veterans' Affairs shall be paid to the personal representative of the deceased beneficiary. Such funds, and the proceeds of such property, shall revert and be returned by the personal representative to the Administrator of Veterans' Affairs, except that before making such return the personal representative shall satisfy the claims of creditors and the expenses incident to the administration of the estate of the deceased beneficiary from such funds and such proceeds if the other assets of the estate of the deceased beneficiary are insufficient for that purpose. The Administrator shall then pay such funds, and the proceeds of such property, to the survivor or survivors of the beneficiary first listed in paragraph (3) living at the time the payment is made. If there are no survivors in the classes listed in that paragraph, such funds, and the proceeds of such property, shall be deposited in the Treasury to the credit of the current appropriation or appropriations (as determined by the Administrator of Veterans' Affairs) from which such funds, or the funds from which such property was derived, were appropriated." [H. R. 72, 85TH CONGRESS, 1ST SESSION, AS REPORTED MARCH 28, 1957] [Omit the part struck through and insert the part printed in italic] A BILL To amend section 21 of the World War Veterans' Act, 1924, to provide for the disposition of certain benefits which are unpaid at the death of the intended beneficiary Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) paragraph (3) of section 21 of the World War Veterans' Act, 1924 (38 U. S. C. 450), is amended by striking out all that follows or, in the event of his death," and inserting the following: to the survivor of the beneficiary first listed below changing the comma to a period after the word "conservator" where that word first appears, striking out all that follows, and inserting the following: “In the event of his death, any such balance which was derived from insurance may be paid to his personal representative, except as otherwise provided by law; however, payment will not be made to his personal representative if, under the law of his last legal residence, his estate would escheat to the State. balance in such fund derived from benefits other than insurance may be paid to the survivor of the beneficiary first listed below: "(A) The spouse of the deceased; Any "(B) The children (as defined in paragraph VI of Veterans Regulation Numbered 10, disregarding any part thereof relating to age or marital status) in equal parts; "(C) The dependent mother or father (as defined in paragraph VII of Veterans Regulation Numbered 10), or, if he has both a dependent mother and a dependent father, to them in equal shares. If there are no survivors in the classes listed above, the balance so held shall revert to the Treasury to the credit of the current appropriation or appropriations from which made. Any funds in the hands of a guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate, derived from automatic or term insurance payable under said Acts, which under the law of the State wherein the beneficiary had his last legal residence would escheat to the State, shall escheat to the United States and shall be returned by such guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate, or by the personal representative of the deceased beneficiary, less legal expenses of any administration necessary to determine that an escheat is in order, to the Administrator of Veterans' Affairs. Such funds shall be deposited in the Treasury to the credit of the current appropriation (as determined by the Administrator of Veterans' Affairs) from which such funds were appropriated." (b) Such section 21 is further amended by adding at the end thereof the following: "(5) Where a beneficiary dies, any funds or property in the hands of a person who is a guardian, curator, conservator, chief officer of an institution in which the beneficiary was an inmate, or person legally vested with his care or the care of his estate, which funds or property were derived from payments of compensation, pension (including pension under private Acts), emergency officers' retirement pay, servicemen's indemnity, or retirement pay made to such person on behalf of the beneficiary before or after the date of enactment of this paragraph by the Administrator of Veterans' Affairs shall be paid to the personal representative of the deceased beneficiary. Such funds, and the proceeds of such property, shall revert and be returned by the personal representative to the Administrator of Veterans' Affairs, except that before making such return the personal representative shall satisfy the claims of creditors and the expenses incident to the administration of the estate of the deceased beneficiary from such funds and such proceeds if the other assets of the estate of the deceased beneficiary are insufficient for that purpose. The Administrator shall then pay such funds, and the proceeds of such property, to the survivor or survivors of the beneficiary first listed in paragraph (3) living at the time the payment is made. If there are no survivors in the classes listed in that paragraph, such funds, and the proceeds of such property, shall be deposited in the Treasury to the credit of the current appropriation or appropriations (as determined by the Administrator of Veterans' Affairs) from which such funds, or the funds from which such property was derived, were appropriated.” [H. R. 72, 85TH CONGRESS, 1ST SESSION, AS REPORTED BY THE COMMITTEE OF THE WHOLE HOUSE TO THE HOUSE ON JULY 12, 1957] A BILL To amend section 21 of the World War Veterans' Act, 1924, to provide for the disposition of certain benefits which are unpaid at the death of the intended beneficiary Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) paragraph (3) of section 21 of the World War Veterans' Act, 1924 (38 U. S. C. 450), is amended by striking out all that follows or, in the event of his death," and inserting the following: to the sur viver of the beneficiary first listed below changing the comma to a period after the word "conservator" where that word first appears, striking out all that follows, and inserting the following: "In the event of his death, any such balance which was derived from insurance may be paid to his personal representative, except as otherwise provided by law; however, payment will not be made to his personal representative if, under the law of his last legal residence, his estate would escheat to the State. Any balance in such fund derived from benefits other than insurance may be paid to the survivor of the beneficiary first listed below: "(A) The spouse of the deceased; "(B) The children (as defined in paragraph VI of Veterans Regulation Numbered 10, disregarding any part thereof relating to age or marital status) in equal parts; "(C) The dependent mother or father (as defined in paragraph VII of Veterans Regulation Numbered 10), or, if he has both a dependent mother and a dependent father, to them in equal shares: shares; "(D) The brothers and sisters of the deceased (including those of the half blood and those through adoption) who reside in the United States, or any Territory, Commonwealth, or possession thereof, and who establish to the satisfaction of the Administrator that (i) they contributed substantially to the support of the deceased over the years, (ii) they were, in fact, dependent upon the deceased for support during his lifetime, or (iii) they had custody of the deceased during his lifetime and provided care and aid to him." If there are no survivors in the classes listed above, the balance so held shall revert to the Treasury to the credit of the current appropriation or appropriations from which made. Any funds in the hands of a guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate, derived from automatic or term insurance payable under said Acts, which under the law of the State wherein the beneficiary had his last legal residence would escheat to the State, shall escheat to the United States and shall be returned by such guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate, or by the personal representative of the deceased beneficiary, less legal expenses of any administration necessary to determine that an escheat is in order, to the Administrator of Veterans' Affairs. Such funds shall |