**§3.1604 Payments from non-VA sources.**

\(a\) *Contributions or payments by public or private organizations.*
When contributions or payments on the burial expenses have been made by
a state, any agency or political subdivision of the United States or of
a State or the employer of the deceased veteran only the difference
between the entire burial expenses and the amount paid thereon by any of
these agencies or organizations, not to exceed the applicable statutory
burial allowance, will be authorized. Contributions or payments by any
other public or private organization such as a lodge, union, fraternal
or beneficial organization, society, burial association or insurance
company, will bar payment of the burial allowance if such allowance
would revert to the funds of such organization or would discharge such
organization's obligation without payment. (Authority: 38 U.S.C. 2302;
2307)

\(1\) A contract or policy which provides for payment at death of a
specified amount to a designated beneficiary other than the person
rendering burial and funeral services will not bar payment of the burial
allowance to the beneficiary even though the organization issuing the
contract or policy retains an option to make payment direct to the
person rendering burial and funeral services.

\(2\) The provisions of this paragraph do not apply to contributions or
payments on the burial and funeral expenses which are made for
humanitarian reasons if the organization making the contribution or
payment is under no legal obligation to do so.

\(b\) *Payment by Federal agency.*

\(1\) Where a veteran dies while in employment covered by the United
States Employees' Compensation Act, as amended, or other similar laws
specifically providing for payment of the expenses of funeral,
transportation, and interment out of Federal funds, burial allowance
will not be authorized by the Department of Veterans Affairs.

\(2\) A provision in any Federal law or regulation permitting the
application of funds due or accrued to the credit of the deceased toward
the expenses of funeral, transportation and interment (such as Social
Security benefits), as distinguished from a provision specifically
prescribing a definite allowance for such purpose, will not bar payment
of the burial allowance. In such cases only the difference between the
total burial expense and the amount paid thereon under such provision,
not to exceed the amount specified in 38 U.S.C. 2302, will be
authorized. (Authority: 38 U.S.C. 2302(b))

\(3\) Burial allowance is not payable for deaths in active service, or
during the duty periods set forth in §3.6, or for other deaths where the
cost of burial and transportation is paid by the service department.

\(c\) *Payment of plot or interment allowance by public or private
organization except as provided for by §3.1604(d).* Where any part of
the plot or interment expenses has been paid or assumed by a state, any
agency or political subdivision of a State, or the employer of the
deceased veteran, only the difference between the total amount of such
expenses and the amount paid or assumed by any of these agencies or
organizations, not to exceed the statutory plot or interment allowance,
will be authorized. (Authority: 38 U.S.C. 2303(b)(1))

\(d\) *Payment of the plot or interment allowance to a State or
political subdivision thereof*:

\(1\) *Conditions warranting payment.* All of the following conditions
must be met:

\(i\) The plot or interment allowance is payable based on the deceased
veteran's eligibility for burial in a national cemetery (or, in claims
filed prior to December 16, 2003, the deceased veteran's service). See
§38.620 of this chapter.

\(ii\) The deceased veteran is buried in a cemetery or a section thereof
which is used solely for the interment of persons who are eligible for
burial in a national cemetery or who, with respect to persons dying on
or after November 1, 2000, were at the time of death members of a
reserve component of the Armed Forces not otherwise eligible for such
burial or were former members of such a reserve component not otherwise
eligible for such burial who were discharged or released from service
under conditions other than dishonorable.

\(iii\) The cemetery or the section thereof where the veteran is buried
is owned by the State, or an agency or political subdivision of the
State claiming the plot or interment allowance.

\(iv\) No charge is made by the State, or an agency or political
subdivision of the State for the cost of the plot or interment.

\(v\) The veteran was buried on or after October 1, 1978.

\(2\) *Claims.* A claim for payment under this paragraph shall be
executed by a State, or an agency or political subdivision of a state on
a claim form prescribed by the Department of Veterans Affairs. Such
claim must be received by the Department of Veterans Affairs within 2
years after the permanent burial or cremation of the body. Where the
burial allowance was not payable at the death of the veteran because of
the nature of the veteran's discharge from service, but after the
veteran's death the veteran's discharge was corrected by competent
authority so as to reflect a discharge under conditions other than
dishonorable, claim may be filed within 2 years from the date of
correction of the discharge.

\(3\) *Amount of* *the allowance.* A State or an agency or political
subdivision of a state entitled to payment under this paragraph shall be
paid the maximum statutory amount as a plot or interment allowance
without regard to the actual cost of the plot or interment. (Authority:
38 U.S.C. 2303(b))

\(4\) *Priority* of *payment.* A claim filed under this paragraph shall
take precedence in payment of the plot or interment allowance over any
claim filed for the plot or interment allowance under §3.1601(a)(2).
(Authority: 38 U.S.C. 2303(b))

\(5\) A plot or interment allowance may be paid to a state in addition
to a burial allowance under §3.1600(a) for claims filed on or after
December 16, 2003.

\[26 FR 1621 Feb. 24, 1961, as amended at 29 FR 9537, July 14, 1964; 38
FR 30107, Nov. 1, 1973; 44 FR 22722, Apr. 17, 1979; 44 FR 58710; Oct.
11, 1979; 52 FR 34909, Sept. 16, 1987; 66 FR 48561, Sept. 21, 2001; 71
FR 44920, Aug. 8, 2006\]

**Supplement *Highlights* references**: 47(2), 72(2).

Reserved