Home / FAQs / What are some of the definitions used by VA in the Fiduciary Program?

What are some of the definitions used by VA in the Fiduciary Program?

Beneficiary Individuals, who are entitled to receive benefits, are referred to as the beneficiary. They can be classified as veterans, minors and other adults. The last category incorporates adult children who are not capable of supporting themselves before their 18th birthday, dependent parents, surviving spouses, and insurance payees. Corporate Surety Bond A corporate surety bond is an agreement whereby an insurance company becomes liable for the performance of work or services provided by a fiduciary. The surety company is financially liable in cases when the fiduciary does not fulfil his/her responsibilities. Court- Appointed Fiduciary This is a person who is legally appointed by a foreign or state court to supervise the beneficiary when he or she is unable to manage his or her financial affairs or estate. The statutory title of court-appointed fiduciary may change depending on the state. The most commonly used titles include conservator, trustee, guardian, committee, and curator. The title used is per state law requirements. Federal Fiduciary Federal fiduciary is a person or any legal entity who is authorized by VA for using the VA benefits of the beneficiary who is not capable of managing his/her financial affairs. The term federal fiduciary includes the following: Spouse-Payee: An incompetent Veteran’s spouse who is designated to administer the funds payable for the Veteran and other dependents, if any. Legal Custodian: This is a person or a legal entity designated by VA to manage VA funds on behalf of the beneficiary who is unable to manage his or her financial affairs. Superintendent of Indian Reservation: A superintendent or other officer designated by the Secretary of the Interior to receive funds due an Indian beneficiary unable to manage his or her financial affairs. Custodian-in-Fact: A temporary payee is provided in emergency cases for the beneficiary who is not able to manage his or her VA benefits. A temporary payee is also provided in cases where VA certifies the delay in payments to the existing fiduciary, or in cases where payment to the successor or existing fiduciary is inappropriate under the circumstances. Institutional Award Payee: This refers to the chief officer of an institution who is authorized for a part or all payments of VA benefits due to the veteran who is not capable of managing his or her financial affairs. This is common in cases where the veteran is receiving domiciliary care, nursing care, or hospital treatment. This payment method is appropriate when VA benefits are paid according to the needs of the veteran or is not substantial enough for the requirement of any other type of fiduciary. Incompetent 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. Misuse 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. Failure to provide accurate accounting is also considered to be misuse. Supervised Direct Pay Beneficiary 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. In cases where a veteran is the beneficiary, he or she must be rated as incompetent by VA. Withdrawal Agreements This refers to a contract among three parties where VA, a financial organization, and the lawful custodian 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.

Leave a Reply

Your email address will not be published. Required fields are marked *