Citation Nr: 21076633 Decision Date: 12/27/21 Archive Date: 12/27/21 DOCKET NO. 14-17 748 DATE: December 27, 2021 ORDER Payment of VA benefits (returned to VA after the Veteran's death) to the appellant for an amount not to exceed $1,398.06 is granted. FINDINGS OF FACT 1. VA benefits from the month of June 2009 in the amount of $2,673.00 were returned to VA after the Veteran's death in July 2009. 2. The appellant, who is the Veteran's brother, paid $1,698.06 total in funeral expenses, and $1,398.06 of this amount has not been reimbursed by VA. CONCLUSION OF LAW The criteria for entitlement to payment of VA benefits (returned to VA after the Veteran's death) to the appellant for reimbursement for the expenses of the Veteran's burial in the amount of $1,398.06 are met. 38 C.F.R. § 3.1003(a)(5). REASONS AND BASES FOR FINDINGS AND CONCLUSION The Veteran served on active duty from June 1969 to March 1971. Regrettably, he passed away in July 2009. The appellant is the Veteran's brother. This matter comes before the Department of Veterans Affairs (VA) Board of Veterans' Appeals (Board) from a June 2010 administrative decision. In September 2021, the Veteran provided sworn testimony before the undersigned Veterans Law Judge (VLJ) at a Board hearing. A copy of the hearing transcript has been associated with the electronic claims file. The Veteran died on July [REDACTED], 2009. On July 13, 2009, in a phone conversation with the appellant, VA acknowledged the Veteran's death, and it was noted that they informed the appellant that if any VA payments were issued in the Veteran's name for the month in which he died, they must be returned to VA. (emphasis added) The record shows that, in July 2009, proceeds in the amount of $2,673.00.00 were returned to the disbursing office and returned to appropriations. However, the Board notes VA never sent the appellant or the Veteran's estate a notification letter explaining the above or to provide information regarding VA benefits for survivors of the Veteran. The appellant has since argued that the funds in question pertain to the month of June, not the month of July (as noted, the Veteran died in July). Specifically, in October 2009, the appellant filed an application for reimbursement from accrued amounts due to being the deceased's beneficiary, asking VA to return these funds as the check in question was issued for the month of June 2009, and the Veteran did not pass away until July 2009. He requested the funds from that check to reimburse him for expenses for the Veteran's funeral. In a June 2010 decision, the appellant was informed that his application was denied. The letter explained that no accrued benefits were payable because VA did not owe the Veteran any money at the time of his death. The appellant is appealing this decision. The Board notes that where the payee of a check for benefits has died prior to negotiating the check, the check shall be returned to the issuing office and canceled, which was done here. The amount represented by the returned check, or any amount recovered following improper negotiation of the check, shall be payable to the living person or persons in the order of precedence listed in 38 C.F.R. § 3.1000(a)(1) through (5), except that the total amount payable shall not include any payment for the month in which the payee died, and payments to persons described in 38 C.F.R. § 3.1000(a)(5) shall be limited to the amount necessary to reimburse such persons for the expenses of last sickness and/or burial. See 38 C.F.R. § 3.1003(a). (emphasis added). In this case, the appellant submitted evidence that he paid $1,698.06 in funeral expenses. He also submitted a claim for burial benefits, which resulted in a VA payment of $300.00. Burial expenses in the amount of $1,398.06 has not been reimbursed. As mentioned, the record shows that, in July 2009, proceeds in the amount of $2,673.00 were cancelled per VA's request. This is consistent with the appellant's assertion that he returned the Veteran's June 2009 check that was due to the Veteran for the month of June 2009, but was mailed to him and received in July 2009, following the Veteran's death in July 2009. As these funds are from June 2009 when the Veteran was still alive, the Board finds that the amount represented by the returned check shall be payable to the appellant, but "shall be limited to the amount necessary to reimburse such persons for the expenses of last sickness and/or burial." See 38 C.F.R. § 3.1003(a)(5). Therefore, per 38 C.F.R. § 3.1003(a), the Board finds that the appellant is entitled to payment to not exceed $1,398.06, and the claim is granted to that extent only. M. C. GRAHAM Veterans Law Judge Board of Veterans' Appeals Attorney for the Board G.Hoy, Associate Counsel The Board's decision in this case is binding only with respect to the instant matter decided. This decision is not precedential and does not establish VA policies or interpretations of general applicability. 38 C.F.R. § 20.1303.