A beneficiary is an individual entitled to receive VA benefits. Beneficiaries are classified as minors, Veterans, and other adults. The latter group includes adult children incapable of self support prior to their eighteenth birthday, surviving spouses, dependent parents, and some insurance payees.
A corporate surety bond is an agreement whereby an insurance company becomes liable for the performance of work or services provided by a fiduciary. If the fiduciary does not fulfill his/her responsibilities, the surety company is financially liable.
A court-appointed fiduciary is a person or legal entity appointed by a state or foreign court to supervise a beneficiary unable to manage his or her financial affairs and/or that person's estate. The statutory title of a court-appointed fiduciary may vary from state to state. Guardian, conservator, committee, trustee, or curator are the most commonly used titles. The appropriate title should be used as state law requires.
A federal fiduciary is a person or legal entity authorized by VA to serve as payee of VA benefits for a beneficiary unable to manage his or her financial affairs. The term federal fiduciary includes the following:
An adult who is rated incompetent by VA or under legal disability by reason of court action as a result of an inability to manage his or her own financial affairs. Included in this definition are Veterans' children who are shown to be permanently incapable of self-support, prior to the age of majority.
38 U.S.C. 6106(b) defines misuse of benefits by a fiduciary as any case in which the fiduciary receives payment under any of the laws administered by the Secretary, for the use and benefit of a beneficiary and uses such payment, or any part thereof, for a use other than for the use and benefit of such beneficiary or that beneficiary's dependents. Misuse is also considered when a fiduciary fails to provide adequate accountings.
An incompetent adult beneficiary to whom benefits are paid directly when the facts indicate that he or she is capable of handling his or her financial affairs under continuing supervision of the fiduciary activity. If the beneficiary is a Veteran, that Veteran must be rated incompetent by VA.
A three-party contract in which VA, the legal custodian, and a financial institution all agree that funds issued by VA for the beneficiary, are deposited into an account with the financial institution, and may be withdrawn only with the written consent of the Veterans Service Center Manager.