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81. VA Escheat Claims

Funds in the hands of a guardian for an incompetent veteran, derived from Department of Veteran Affairs (VA) benefit payments, will escheat to the United States if the veteran dies intestate and under the laws of the state where he/she died the funds would otherwise escheat to the state. See 38 U.S.C. 3202(e); In re Linquist's Estate, 25 Cal.2d 697, 154 P.2d 879 (1944), cert. denied, 325 U.S. 869 (1945). A state enacting an abandoned personal property law cannot thereby defeat the escheat claim of the United States. See In re Hammond's Estate, 2 A.D.2d 160, 154 N.Y.S.2d 820 (1956), aff'd, 3 N.Y.2d 567, 147 N.E.2d 777 (1958), 170 N.Y.S.2d 505 (1958).

[cited in USAM 4-4.450]

Updated May 20, 2015