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Fiduciary
How to Apply
To apply as a potential fiduciary (for a family member, friend, or as a professional), please carefully review the instructions on how to apply electronically, which are detailed in the Potential Fiduciary Application job aid, before submitting your application.
Selection Process
The fiduciary selection is based on an assessment of the qualifications of the proposed fiduciary. When seeking a fiduciary the following individuals may be considered:
- A spouse or family member
- Court-appointed fiduciaries. Note: VA is not required to recognize a court-appointed fiduciary for purposes associated with the payment of VA benefits.
- Another interested party
- A professional fiduciary
An assessment of the qualifications of a proposed fiduciary may include, but is not limited to:
- The willingness to serve and abide by all agreements
- An interview with a VA representative
- Credit report review
- Criminal background inquiry
Ability to submit accountings or fund usage reviews. Note: It is important that the proposed fiduciary knows that they may need to provide accountings or fund usage reviews, understands what this involves, and can handle such responsibilities.
Responsibilities
Any individual appointed as a VA fiduciary is responsible for managing the beneficiary‘s VA income and ensuring the beneficiary‘s just debts (monetary obligations) are paid.
- Utilizing the funds for the daily needs (e.g., food, clothing, housing, medical expenses, and personal items) of the beneficiary and their VA recognized dependents.
- Never borrowing, loaning, or gifting funds belonging to the beneficiary to yourself or anyone else.
- Never commingling the beneficiary‘s funds with those of another, including yours.
- Never withdrawing cash from the beneficiary‘s account by counter check or ATM withdrawal.
- Returning any funds owned by the beneficiary to VA if you stop serving as the fiduciary.
- Reporting any changes to the fiduciary activity immediately:
- Change in address or phone number of the beneficiary or fiduciary
- Change in the beneficiary‘s income or dependents
- Incarceration of the beneficiary or fiduciary
- Hospitalization of the beneficiary in a VA or state facility
- Death of the beneficiary or the beneficiary‘s dependents
- Death of the fiduciary
- Establishing a properly titled bank account (Beneficiary & Fiduciary names, e.g., "Beneficiary Name, by Fiduciary Name, Federal Fiduciary").
- Timely submitting periodic accountings or fund usage review when required.
- Keeping accurate, complete records and receipts.
- Conserving excess funds in federally or state insured interest-bearing accounts or US savings bonds.
- Registering savings bonds to reflect proper ownership and fiduciary relationship.
- Reporting any event affecting the beneficiary‘s payment or entitlement.
- Notifying VA of any changes that affect your performance or ability to continue as payee.
- Notifying VA if the beneficiary‘s condition improves and a fiduciary is no longer needed.
- Protecting the beneficiary‘s funds from creditor claims.
- Meeting with VA for periodic onsite reviews when required under law.
Periodic Onsite Review
Onsite reviews ensure fiduciaries are performing their duties satisfactorily and protect beneficiaries from misuse of their benefits. This strengthens VA’s oversight of fiduciaries and supplements field examinations and accounting processes.
- Under 38 U.S.C. 5508, VA must conduct periodic onsite reviews of fiduciaries in the US serving >20 beneficiaries with total VA funds under management >$50,000, adjusted under 38 U.S.C. 5312.
- Current threshold for reviews: $83,418.91, effective December 1, 2024.
VA may conduct onsite reviews as necessary to ensure beneficiary well-being or prevent exploitation of funds.
