Fiduciary
In the event the Veteran or other eligible dependent (beneficiary) is found unable to handle their financial affairs the VA will have a fiduciary assigned.
The duty of a fiduciary is to look out for the beneficiary's best interest financially.
Selecting a Fiduciary
When possible, it is preferred a fiduciary be selected by the beneficiary themselves.
Before a fiduciary can be assigned they must pass an investigation which includes:
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Criminal background check;
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Review of credit report;
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Personal interview; and
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Recommendations of character references.
If the beneficiary is unable to select someone who is able to pass the investigation. The VA will assign a professional fiduciary.
Responsibilities of a Fiduciary
The primary responsibility is to manage the beneficiary‘s VA income and ensuring the beneficiary‘s bills are paid.
Additional, responsibilities of the fiduciary include, but are not limited to the following:
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Utilizing the funds for the daily needs (e.g., food, clothing, housing, medical expenses, and personal items) of the beneficiary and his/her recognized dependents.
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Never borrowing, loaning, or gifting funds belonging to the beneficiary.
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Reporting any of the following changes to the Fiduciary Activity immediately:
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Change in address or phone number of the beneficiary or fiduciary
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Change in income or dependents
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Incarceration of the beneficiary
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Hospitalization of the beneficiary in a VA or state facility, and
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Death of the beneficiary or the beneficiary’s dependents
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Establishing a properly titled bank account as follows: (Beneficiary’s Name), by (Fiduciary’s Name, Federal Fiduciary).
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Never commingling the beneficiary‘s funds with those of another.
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Never withdrawing cash from the beneficiary’s account by counter check or ATM withdrawal.
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Timely submitting periodic accountings when required.
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Keeping accurate, complete records and receipts, regardless of any requirement to submit periodic accountings.
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Conserving excess funds in a federally or state insured interest bearing account or United States savings bonds.
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Registering saving bonds to reflect proper ownership and the existence of the fiduciary relationship, as follows: (Beneficiary‘s Name), (Social Security No.), under custodianship by designation of the Department of Veterans Affairs.
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Reporting any event that affects the beneficiary‘s payment or entitlement to benefits and promptly returning any payment that the beneficiary is not due.
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Notifying VA of any changes or circumstances that would affect your performance as a payee or your decision to continue to serve as a payee (e.g., you sell or transfer your business).
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Returning any funds owned by the beneficiary to VA if you stop serving as the fiduciary.
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Notifying the VA if the beneficiary‘s condition improves to a point where you believe he or she no longer needs a fiduciary.
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Protecting the beneficiary‘s funds from the claims of creditors since the beneficiary‘s funds are protected by law.
Fiduciary Accountings Submission Tool (FAST)
FAST is a tool that assists fiduciaries submit:
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New accountings,
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Review existing accountings; and
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Provide accounting revisions in a centralized repository.
Click HERE to learn more about how to use FAST.
Fighting a Fiduciary Determination
The beneficiary may appeal to the Board of Veterans' Appeals.
It is recommended to seek out the aid of a VSO. When going through the appeals process.
The board should be provided with the following:
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A statement how you disagree with the VA's decision and want the Board to review it; and/or
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New evidence that may lead the VA to change their decision.
Replacing a Fiduciary
At any time the beneficiary may request a different fiduciary by sending a written notice to their nearest Regional Office (RO).
Removing a Fiduciary (Requesting a Reevaluation)
If the beneficiary's condition has improved enough that they would like to have the VA remove their fiduciary. A written request and supporting medical evidence must be sent to the nearest Regional Office (RO).
FAQ
Can the VA assign me a fiduciary because I have a high Mental health rating?
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No, only if you can't manage your financial affairs.
What evidence is required for the VA to assign a fiduciary?
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Medical documentation; or
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A court of competent jurisdiction
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that shows that an individual is unable to manage their financial affairs
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Will my ratings be reevaluated if I request to have my fiduciary removed and manage my own finances again?
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Yes, the VA will reevaluate your conditions that formed the original basis of the need for a fiduciary. Which if appropriate, CAN result in your ratings being reduced.