The VA Fiduciary Program assigns a qualified person to manage the benefits of veterans who have been found unable to handle their finances due to age, injury, or illness. Veterans may appeal if they disagree with the VA’s decision that they need a fiduciary or the VA’s choice of a fiduciary.
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In this article about the VA Fiduciary Program:
What is the VA Fiduciary Program?
The VA Fiduciary Program was designed to protect veterans and other beneficiaries who may have difficulty managing their finances. Their age, disabilities, or other circumstances impact their ability to handle their VA benefits.
There are two instances where the VA may add someone to this program. Either:
- A court with the authority to hear and decide cases has determined the beneficiary is incompetent, or
- There is medical documentation that shows the beneficiary is unable to manage their finances.
When the VA determines a veteran should be in the program, they will appoint a federal fiduciary. A fiduciary is a trusted person or organization responsible for managing the VA benefits on behalf of the beneficiary.
Selecting a fiduciary
When selecting a fiduciary, the VA looks for someone who will act in the beneficiary’s best interests.
The first choice is usually a spouse or close family member. In some cases, a friend may also be selected. These are the people most likely to understand the beneficiary’s needs and circumstances. If a suitable family member or friend isn’t available or willing to serve, the VA may look at other options, such as a professional fiduciary. In some cases, these may be temporary, emergency fiduciaries.
The VA conducts a thorough background check to ensure any potential fiduciary is capable and trustworthy. This in-depth process includes a review of credit reports, criminal history, personal interviews, and more.
What are a fiduciary’s responsibilities?
A fiduciary’s primary responsibility is appropriately managing the veteran’s VA funds. They must make sure that the money is used for primary needs, including housing, healthcare, food, and other essential living expenses.
The fiduciary must always act in the veteran’s best interest, including ensuring that the veteran’s bills are paid on time. They must establish a bank account specifically for the veteran’s VA benefits. They must never borrow, loan, or gift the veteran’s money and must keep detailed records of how it is used. Fiduciaries must also provide regular reports to the VA. This reporting process typically includes submitting receipts, bank statements, and expenses.
Fiduciaries should also report changes like a significant improvement in health, new address, death of the beneficiary or any dependents, and other updates that can affect benefits or even the beneficiary’s need for a fiduciary.
The VA fiduciary form is VA Form 21P-4706b. It is not used to apply for an incompetent rating from the VA. This form is used to account for the money received and spent by the fiduciary. To become a fiduciary for a veteran, you email your application to the VA and begin the process.
What are my rights as a beneficiary in the VA Fiduciary Program?
If the VA determines that you cannot manage your financial affairs and appoints a fiduciary, you have the right to appeal this decision, request a re-evaluation, or request a change of fiduciary. We explain this in detail below.
Being in the VA fiduciary program doesn’t affect your non-VA finances or your right to vote. The fiduciary’s role is limited to managing your VA benefits – their authority does not extend beyond that.
Can I own a gun if I am in the VA Fiduciary Program?
Being part of the VA fiduciary program can impact your right to own a firearm, depending on the circumstances. Under the Brady Handgun Violence Prevention Act, if the VA determines you are mentally incompetent and appoints a fiduciary to manage your VA benefits, your name is typically reported to the National Instant Criminal Background Check System (NICS). Gun dealers use this federal database to verify whether a potential buyer is legally allowed to purchase firearms.
Some veterans’ advocates and gun rights activists have expressed concerns that veterans entering the Fiduciary Program may lose access to firearms without due process. Their pushback led to temporary changes to the system that have since expired, but prove the issue is still a contentious and changing one. For the most up-to-date information, veterans should contact the VA’s Fiduciary Program with any questions and concerns about their Second Amendment rights.
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Can you appeal the VA’s decision?
Veterans can appeal the VA’s decision if they disagree with their determination regarding their ability to manage their VA benefits. They can also appeal the VA’s choice of a fiduciary.
You can appeal the decision that you are unable to manage your finances by requesting a higher level review (HLR), supplemental claim, or Board Appeal. Requests for an HLR or Board Appeal should be submitted within one year of the date on the decision letter. A supplemental claim request can be made at any time, but the VA still recommends doing this within one year. Unfortunately, it can take anywhere from months to years to receive a decision from the VA.
How Woods and Woods can help
At Woods and Woods, we focus on helping non-working veterans with service-connected conditions get individual unemployability benefits and, in some cases, increased ratings. We also help survivors of veterans receive their DIC benefits. If you think we can help you with your claim, call us today for a free case evaluation. You won’t pay us unless we win your case.
Talk to Us About Your Claim:
(812) 426-7200
FREQUENTLY ASKED QUESTIONS
The VA determines if a veteran needs a fiduciary based on medical documentation or a court ruling that states the veteran is unable to manage their finances on their own. This determination is sometimes referred to as a VA incompetence rating.
Yes, you can appeal the VA’s decision to appoint a fiduciary. To do this, you must request either a higher level review (HLR), supplemental claim, or Board Appeal. A review request should be made within one year of the date on the decision letter.
Neil Woods
VA disability attorney
Woods & Woods
Neil Woods is the firm’s owner and president. He received his law degree from Western Michigan University.