Title 38Veterans' BenefitsRelease 119-73

§8523 Disbursements from the Fund

Title 38 › Part PART VI— - ACQUISITION AND DISPOSITION OF PROPERTY › Chapter CHAPTER 85— - DISPOSITION OF DECEASED VETERANS’ PERSONAL PROPERTY › Subchapter SUBCHAPTER II— - DEATH WHILE PATIENT OF DEPARTMENT FACILITY › § 8523

Last updated Apr 6, 2026|Official source

Summary

The Treasury Department’s Division of Disbursements must pay money from the Fund when the Secretary orders it. The money is for the benefit of members and patients while they are getting care or treatment from the Department in any facility or hospital. Payments can be made even if the facility is not run directly by the Department. When a person dies, the dead person’s assets must be used to pay valid creditor claims that would normally be payable from the estate, and to pay proper administration costs. Creditors must present claims to the Department within one year of death, or in the time and way required by the state handling the estate. If the estate cannot pay all debts, creditors are paid according to the law of the decedent’s home state, unless a federal law applies.

Full Legal Text

Title 38, §8523

Veterans' Benefits — Source: USLM XML via OLRC

Disbursements from the Fund shall be made by the Division of Disbursements, Treasury Department, upon the order and within the discretion of the Secretary for the benefit of members and patients while being supplied care or treatment by the Department in any facility or hospital. The authority contained in the preceding sentence is not limited to facilities or hospitals under direct administrative control of the Department. There shall be paid out of the assets of the decedent so far as may be the valid claims of creditors against the decedent’s estate that would be legally payable therefrom in the absence of this subchapter and without the benefit of any exemption statute, and which may be presented to the Department within one year from the date of death, or within the time, to the person, and in the manner required or permitted by the law of the State wherein administration, if any, is had upon the estate of the deceased veteran; and also the proper expenses and costs of administration, if any. If the decedent’s estate is insolvent the distribution to creditors shall be in accordance with the laws of the decedent’s domicile, and the preferences and priorities prescribed thereby shall govern, subject to any applicable law of the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1991—Pub. L. 102–40 renumbered section 5223 of this title as this section. Pub. L. 102–83 substituted “Secretary” for “Administrator” and “Department” for “Veterans’ Administration” wherever appearing. 1986—Pub. L. 99–576 substituted “the decedent’s” for “his” in two places.

Executive Documents

Transfer of Functions

Division of Disbursements of Treasury Department consolidated into Fiscal Service of Treasury Department by section 1(a)(1) of Reorg. Plan No. III of 1940, eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231, set out in the Appendix to Title 5, Government Organization and Employees. See section 306 of Title 31, Money and Finance.

Reference

Citations & Metadata

Citation

38 U.S.C. § 8523

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73