A-19471, OCTOBER 27, 1927, 7 COMP. GEN. 294

A-19471: Oct 27, 1927

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VETERANS' BUREAU - INSURANCE - ESCHEAT THE PAYMENT OF WAR-RISK INSURANCE TO THE ESTATE OF THE INSURED IS AUTHORIZED WHERE NO ONE WITHIN THE PERMITTED CLASS WAS DESIGNATED BY THE INSURED AND THERE IS A SHOWING THAT THERE WOULD BE NO ESCHEAT OF THE ESTATE. 1927: I HAVE YOUR LETTER OF AUGUST 4. WHEREIN IS SUBMITTED THE QUESTION OF AUTHORITY TO PAY INSURANCE TO THE ESTATE OF AN INSURED VETERAN. IN CONNECTION WITH A SHOWING THAT HE DESIGNATED THE PAYMENT TO BE MADE TO HIS ESTATE AND BY A WILL AT OR ABOUT A TIME IMMEDIATELY PRIOR TO HIS DEATH BEQUEATHED HIS ESTATE TO ONE A STRANGER IN BLOOD TO HIM AND NOT WITHIN THE STATUTORY PERMITTED CLASS FOR DIRECT DESIGNATION. PROVIDES: IF NO PERSON WITHIN THE PERMITTED CLASS BE DESIGNATED AS BENEFICIARY FOR YEARLY RENEWABLE TERM INSURANCE BY THE INSURED EITHER IN HIS LIFETIME OR BY HIS LAST WILL AND TESTAMENT OR IF THE DESIGNATED BENEFICIARY DOES NOT SURVIVE THE INSURED OR SURVIVES THE INSURED AND DIES PRIOR TO RECEIVING ALL OF THE TWO HUNDRED AND FORTY INSTALLMENTS OR ALL SUCH AS ARE PAYABLE AND APPLICABLE.

A-19471, OCTOBER 27, 1927, 7 COMP. GEN. 294

VETERANS' BUREAU - INSURANCE - ESCHEAT THE PAYMENT OF WAR-RISK INSURANCE TO THE ESTATE OF THE INSURED IS AUTHORIZED WHERE NO ONE WITHIN THE PERMITTED CLASS WAS DESIGNATED BY THE INSURED AND THERE IS A SHOWING THAT THERE WOULD BE NO ESCHEAT OF THE ESTATE.

COMPTROLLER GENERAL MCCARL TO THE DIRECTOR, UNITED STATES VETERANS' BUREAU, OCTOBER 27, 1927:

I HAVE YOUR LETTER OF AUGUST 4, 1927, WHEREIN IS SUBMITTED THE QUESTION OF AUTHORITY TO PAY INSURANCE TO THE ESTATE OF AN INSURED VETERAN, DECEASED, IN CONNECTION WITH A SHOWING THAT HE DESIGNATED THE PAYMENT TO BE MADE TO HIS ESTATE AND BY A WILL AT OR ABOUT A TIME IMMEDIATELY PRIOR TO HIS DEATH BEQUEATHED HIS ESTATE TO ONE A STRANGER IN BLOOD TO HIM AND NOT WITHIN THE STATUTORY PERMITTED CLASS FOR DIRECT DESIGNATION.

SECTION 303 OF THE ACT OF JUNE 7, 1924, AS AMENDED BY SECTION 14 OF THE ACT OF MARCH 4, 1925, 43 STAT. 1310, PROVIDES:

IF NO PERSON WITHIN THE PERMITTED CLASS BE DESIGNATED AS BENEFICIARY FOR YEARLY RENEWABLE TERM INSURANCE BY THE INSURED EITHER IN HIS LIFETIME OR BY HIS LAST WILL AND TESTAMENT OR IF THE DESIGNATED BENEFICIARY DOES NOT SURVIVE THE INSURED OR SURVIVES THE INSURED AND DIES PRIOR TO RECEIVING ALL OF THE TWO HUNDRED AND FORTY INSTALLMENTS OR ALL SUCH AS ARE PAYABLE AND APPLICABLE, THERE SHALL BE PAID TO THE ESTATE OF THE INSURED THE PRESENT VALUE OF THE MONTHLY INSTALLMENTS THEREAFTER PAYABLE, SAID VALUE TO BE COMPUTED AS OF DATE OF LAST PAYMENT MADE UNDER ANY EXISTING AWARD: * * * PROVIDED FURTHER, THAT IN CASES WHEN THE ESTATE OF AN INSURED WOULD ESCHEAT UNDER THE LAWS OF THE PLACE OF HIS RESIDENCE THE INSURANCE SHALL NOT BE PAID TO THE ESTATE BUT SHALL ESCHEAT TO THE UNITED STATES AND BE CREDITED TO THE MILITARY AND NAVAL INSURANCE APPROPRIATION. THIS SECTION SHALL BE DEEMED TO BE IN EFFECT AS OF OCTOBER 6, 1917.

THE SPECIFIC REQUIREMENT OF THE ENACTMENT IS THAT IF THE INSURED, EITHER IN HIS LIFETIME OR BY HIS LAST WILL AND TESTAMENT, HAS NOT DESIGNATED AS BENEFICIARY "ANY PERSON WITHIN THE PERMITTED CLASS," THEN "THERE SHALL BE PAID TO THE ESTATE OF THE INSURED" THE VALUE OF THE MONTHLY INSTALLMENTS THEREAFTER PAYABLE. IF THE SHOWING BE THAT NO ONE WITHIN THE PERMITTED CLASS HAS BEEN DESIGNATED, THEN THE INSURANCE IS PAYABLE TO THE ESTATE, PROVIDED THAT THERE BE A SHOWING THAT IN ITS DISTRIBUTION THERE BE SOME ONE TO TAKE, SO THAT THE CONCLUDING PROVISO AS TO ESCHEAT BE NOT APPLICABLE. IN OTHER WORDS, THE PAYMENT TO THE ESTATE IS AUTHORIZED IF THERE BE A SHOWING THAT THERE WOULD BE NO ESCHEAT OF THE ESTATE.