(a) In case of mental incapacity, to the guardian or committee, if any, of the veteran, or if there be no guardian or committee, then to the person with whom the veteran lives, or, in case of a veteran who is hospitalized in a State, county or Federal institution for mental or nervous diseases, upon order of the Adjutant General, without regards to the residence of the veteran, to the person or persons as would be entitled thereto under the provisions of this act if the veteran were deceased, and, in the absence of any such claimant, to the superintendent, manager or person in charge of such State, county or Federal institution, to be expended for the clothing and incidental needs of said veteran: Provided, however, That no part of this compensation shall be paid to any county or State institution for the maintenance of the veteran. A statement from the manager, superintendent or person in charge of any State, county or Federal institution wherein the veteran is a patient, shall be admitted in evidence to determine the mental condition of the veteran. Such statement shall set forth that the veteran, due to his weakness of mind, is liable to dissipate such funds as may be due him under the provisions of this act, and is apt to become the victim of designing persons.

(b) In the case of death to the following persons in the order named: Surviving unremarried widow, if such widow was living with the veteran at the time of his death, or if not so living with the veteran at the time of his death, if she establish, to the satisfaction of the Adjutant General, that the living apart was not due to her wilful act and that she was actually dependent upon the veteran at the time of his death, or at any time thereafter and before the fourth day of January, one thousand nine hundred and thirty-four, or surviving minor child or surviving minor children share and share alike, or surviving mother or surviving father. The terms “mother” and “father” include mothers and fathers through adoption and persons who have, for a period of not less than one year, acted in the capacity of a foster parent to the veteran at any time prior to his or her having attained the age of eighteen (18) years.