Most guides on this desk assume Dad signs his own papers. Sometimes that changes. If VA concludes that a veteran cannot manage his own benefit payments, it can appoint a fiduciary to handle them, and that person becomes accountable to VA for every dollar. The duties do not end when the first payment arrives.1

Local option: New Plan Care gives families in the St. Louis area in-home help so a parent can stay home: companionship, help with bathing and dressing, meals, and overnight care. Call (314) 405-0887.

How the arrangement starts

A fiduciary arrangement follows a VA finding about the veteran's ability to manage funds. It is not a family decision. VA reviews medical evidence before it makes that finding, then writes to the veteran and names who will act. Read that letter closely. It should state what was decided, who the fiduciary is, and how the veteran can disagree. Veterans have appeal rights on VA decisions, so a family that believes the finding is wrong should ask about those rights early rather than let the time pass.2

What the fiduciary is responsible for

VA's fiduciary rules set out the basic duties. Expect to carry each one and to keep proof that you did:

  • Spend the benefit only for the veteran's needs, and keep the veteran's money separate from your own.
  • Keep every receipt and bank statement that shows where the money went.
  • Complete each accounting VA requires, and keep a copy of what you sent.
  • Report changes in the veteran's household, income, or living setting when VA asks, and keep proof that you reported them.
  • Tell VA promptly if you can no longer serve, so a replacement can be named.

These duties are the reason the paperwork never stops. A fiduciary who cannot produce receipts for a payment has a problem that is hard to fix after the fact.3

What a power of attorney does and does not do

A power of attorney is a state-law document. It is a different paper from a VA fiduciary appointment, and having one does not replace the other. Ask whether the family already holds one, what it allows the agent to do, and whether VA has recognized it for handling benefit payments. Those questions belong with a licensed attorney in the state where the document was signed. This desk does not give legal advice.

Settle ownership in writing

Before the next payment cycle after a fiduciary is named, write down the answers to these questions on one page: who VA contacts, who keeps the bank statements, who signs each accounting, who receives copies of VA letters, who approves each care bill and how, and who takes over if the fiduciary dies, moves, or can no longer serve. Put that page in the same binder as the VA letters. One named owner for each item keeps the file from drifting.

Keeping the file alive

Use one binder or one shared folder. Put in the VA letters, each accounting copy, the receipts, and the statements. Name a backup who can find the file if the fiduciary is away. The Sources page lists the VA pages behind this briefing so you can check each rule yourself.

This desk is not affiliated with the U.S. Department of Veterans Affairs.

1 VA.gov, VA fiduciary program overview.
2 VA.gov, appeal rights for VA benefit decisions.
3 VA.gov, fiduciary duties and annual accounting requirements.