Definitions
Accounting
An accounting is a written report from a fiduciary that shows how much money has come in and out of the beneficiary’s accounts over a certain time period. It includes bank statements and details about all the funds managed, no matter where they came from, like Social Security payments or interest earned.
Beneficiary
A beneficiary is an individual entitled to receive VA benefits. Beneficiaries are classified as minors, Veterans, and other adults. The latter group includes helpless children who were found to be incapable of self-support prior to their eighteenth birthday, surviving spouses, dependent parents, and some insurance payees.
Corporate Surety Bond
A corporate surety bond is a contract where an insurance company agrees to take responsibility if someone (like a trustee/fiduciary) doesn’t do their job properly. If that person fails to meet their obligations, the insurance company will cover the costs. This helps ensure that the work or services are done as promised.
Fiduciary
A fiduciary is a person or legal entity authorized by VA to serve as payee of VA benefits for a beneficiary unable to manage their financial affairs. The term fiduciary includes the following:
- Spouse fiduciary - A husband or wife whose marriage meets the requirements of 38 U.S.C. 103(c), who is designated to administer the funds payable for the Veteran and other dependents, if any. A spouse fiduciary has been verified on the Veteran’s award as a dependent spouse within the last eight years and since that time was not removed due to death, divorce, or the beneficiary’s request.
- VA-appointed fiduciary - The person or legal entity designated by VA to manage VA funds on behalf of a beneficiary unable to manage financial affairs.
Fiduciary Accountings Submission Tool (FAST)
FAST provides fiduciaries with the ability to submit accountings and fund usage reports to VA electronically. Fiduciaries can submit, review, and provide revisions to accounting and fund usage reports.
Fund Usage Review
A fund usage report consists of three months of all financial statements containing VA funds for each beneficiary that the fiduciary manages. The fund usage report may also include any supporting documents (receipts, invoices, etc.) that show irregular purchases so that VA can confirm the funds are being spent in the beneficiary’s best interest.
Incompetent
An adult who is rated as unable to manage financial affairs by VA. Included in this definition are Veterans' children who are shown to be permanently incapable of self-support prior to reaching the age of majority and have also been found incapable of managing financial affairs.
Incompetency Determination
An incompetency determination may consist of a VA rating decision, court decree, or both.
Misuse
Misuse of benefits occurs in any case in which the fiduciary receives payment of VA benefits on behalf of a beneficiary and uses any part of such payment for a purpose that is not for the use and benefit of the beneficiary or that beneficiary's dependents.
Supervised Direct Pay Beneficiary (SDP)
An incompetent adult beneficiary to whom benefits are paid directly when the facts indicate that they can handle their financial affairs under continuing supervision of the fiduciary activity. To quality for SDP, the beneficiary must be rated incompetent by VA.
Withdrawal Agreement
A three-party contract in which VA, the VA-appointed fiduciary, and a financial institution all agree that funds issued by VA for the beneficiary, that are deposited into an account with the financial institution, may be withdrawn only with the written consent of the FHM or designee.
