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Fiduciary

Responsibilities of a VA Fiduciary

Any individual appointed as a VA fiduciary is responsible for managing the beneficiary’s VA income and ensuring the beneficiary’s just debts are paid. Additionally, responsibilities of the fiduciary include, but are not limited to the following:

  1. 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.

  2. Never borrowing, loaning, or gifting funds belonging to the beneficiary.

  3. Reporting any of the following changes to the Fiduciary Activity immediately:

    1. Change in address or phone number of the beneficiary or fiduciary,

    2. Change in income or dependents,

    3. Incarceration of the beneficiary,

    4. Hospitalization of the beneficiary in a VA or state facility, and

    5. Death of the beneficiary or the beneficiary’s dependents.

  4. Establishing a properly titled bank account as follows: (Beneficiary’s Name), by (Fiduciary’s Name, Federal Fiduciary).

  5. Never commingling the beneficiary’s funds with those of another.

  6. Never withdrawing cash from the beneficiary’s account either by counter check or ATM withdrawal.

  7. Obtaining prior approval for any nonrecurring expense exceeding $1,000.00.

  8. Timely submitting periodic accountings when required.

  9. Keeping accurate, complete records and receipts, regardless of any requirement to submit periodic accountings.

  10. Conserving excess funds in a federally or state insured interest bearing account or United States savings bonds.

  11. 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.

  12. Reporting any event that affects the beneficiary’s payment or entitlement to benefits and promptly returning any payment that the beneficiary is not due.

  13. 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).

  14. Returning any funds owned by the beneficiary to VA if you stop serving as the fiduciary.

  15. Notifying the VA if the beneficiary’s condition improves to a point where you believe he or she no longer needs a fiduciary.

  16. Protecting the beneficiary’s funds from the claims of creditors. A creditor may not legally take the beneficiary’s funds from you as they are protected by law.

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