In the vast majority of cases, veterans are allowed to spend their VA disability benefits in any way they wish. However, if a veteran suffers from a mental illness or physical impairment that affects their ability to manage their finances, the VA might require that a fiduciary be appointed to oversee how the benefit payments are used. If you have questions about the fiduciary process or your rights, a veteran's disability benefits lawyer can help you understand your legal options and protect your benefits.
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When a Fiduciary May Be Needed
Since disabilities can vary in severity, a veteran is not automatically required to have a fiduciary. A fiduciary will be needed only if a veteran’s Compensation & Pension (C&P) exam reveals symptoms that indicate they would struggle to manage their benefits appropriately. Some situations where a fiduciary might be needed include mental illnesses such as post-traumatic stress disorder (PTSD), age-related dementia, or the lasting effects of a traumatic brain injury (TBI). Veterans receiving VA disability benefits after a traumatic brain injury may also require a fiduciary if the VA determines they are unable to manage their benefit payments responsibly.
The VA can only require a fiduciary for VA benefit payments. This means, a veteran maintains the right to manage any other assets or income they might have.
Choosing a Fiduciary
If a fiduciary is needed, you can request that a specific person be appointed to serve in this role. Often, veterans will have a spouse, family member, or close personal friend serve as their fiduciary. To be formally approved, the person you choose must undergo a credit report review, criminal background check, and interview with a VA representative. Character references will also be needed.
Right to Appeal
A veteran who disagrees with the assessment that a fiduciary is needed can appeal by submitting relevant evidence demonstrating they are able to manage their finances appropriately. This would include bank statements, evidence that bills are paid on time, or lay statements from friends and family attesting to financial responsibility. Providing strong supporting evidence can also improve the chances of having a successful VA disability appeal.
A veteran who believes their current fiduciary is not acting in their best interests can request a review or ask to have a new fiduciary be appointed. This request can be made at any time.
Do You Need to Speak With a Veterans Benefits Lawyer?
If you need to speak with an experienced veterans disability benefits lawyer, please contact us online, or call our Virginia Beach office directly at 757.490.3500 to schedule your consultation. We have offices throughout Virginia, including Virginia Beach, Norfolk, and Suffolk.
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