§ 662. Heirs of deceased enrollees; tax exemption
Each share distributable to an enrollee under sections
660 and
661 of this title shall be paid directly to the enrollee or, if he is deceased at the time of distribution, to his heirs or legatees unless the distributee is under twenty-one years of age or is otherwise under legal disability, in which case such disposition shall be made of the share as the Secretary determines will adequately protect the best interests of the distributee. Funds distributed under sections
659 to
663 of this title shall not be subject to Federal or State income taxes.