What is a Veterans Affairs (VA) Fiduciary Bond?
A fiduciary bond is a form of insurance that protects the assets in an veterans estate, trust or other arrangement from theft, fraud, or other malfeasance. The VA Fiduciary Bond is required from those persons that are managing Veterans Affairs for a Veteran or their estate. This blog post will break down what exactly a fiduciary bond is and why it's so important!
The purpose of this bond is to make sure that a Veteran, or the Veteran's dependents, will receive the proper VA benefits to which the Veteran was entitled to as a member of the armed forces. See the VA website for more information on those benefits.
How do I get out of the VA fiduciary program?
You can request to have your ability to manage VA benefits re-evaluated at any time. If you want a new fiduciary assigned, submit the petition in writing with supporting medical evidence and residence state information. For those who are under court ordered conservatorship, it is recommended that they get their order reversed before proceeding so they don't lose access when switching from one person's care over anothers.
Do VA fiduciaries get paid?
A Fiduciary can charge up to 4% of the amount that is paid. If a spouse would like, they may receive payments on behalf of their partner so there are no confusion in who pays for what as only one person will be able to access and manage benefits
The appointed fiduciary has the ability to collect fees from VA-paid benefit amounts. The maximum fee is set at four percent (4%) or less than $1,000 per year depending on circumstance; this money goes into an account used strictly by and under direct control of the beneficiary's family member(s) designated as “Fiduciaries”.
What is a VA surety bond?
VA fiduciary bonds protect veterans from unlawful or unethical behavior by the fiduciary. These bonds ensure veterans and their dependents receive VA benefits to which they're entitled. More detailed information is available on the United States Department of Veterans Affairs website, including how these securities are issued in a variety of denominations: $100-10 million face value with maturity dates ranging between 1 year and 20 years inclusive (with higher bond values yielding longer maturities).
Can the VA force you to have a fiduciary?
When a veteran is deemed unable to manage their finances, they are required to appoint someone as an agent. This person will be responsible for paying bills and handling financial decisions on behalf of the individual. A volunteer fiduciary could come from anyone in the family or outlying community but if no one can fill this position then it becomes necessary for them to hire somebody outside that circle- usually at a cost not exceeding $5 per hour plus expenses incurred while performing these duties.
The VA has made changes by requiring preference given firstly when there's less availability of volunteers before appointing paid professionals.
Can the VA force you to have a bond as the fiduciary?
The VA has been instructed to get families involved with the care of veterans. Their first priority is will be taking requests from those who request a family member or other volunteer fiduciary, but only when no one can service them as volunteers then they'll appoint a paid fiduciary on behalf of that person's wishes.
Can anyone be a fiduciary?
A fiduciary is a person who takes responsibility to act in the best interest of another. A trustee, for example, must be loyal and trustworthy when carrying out his or her responsibilities as it pertains to others' assets. Corporations have fiduciaries too–their officers are responsible for safeguarding their stakeholders by acting with honesty and integrity-just like attorneys and real estate agents do with those they serve professionally. But not all financial advisors take on this role: some may only offer guidance based on basic information such as age target goals while other might provide advice about investing options if you're looking don't know what idea suits your personal needs better.