VA Fiduciary Program

VA may appoint a fiduciary after a VA rating decision or medical determination that a veteran cannot manage their own financial affairs. Common reasons include:

• Traumatic brain injury (TBI)
• Severe PTSD
• Dementia or Alzheimer's disease
• Other incapacitating mental or physical conditions

VA conducts a field examination to select an appropriate fiduciary. This may be a family member, another individual, or a professional fiduciary organization.

A fiduciary is legally responsible for managing VA benefit payments on behalf of the veteran. Their responsibilities include:

• Managing VA benefit funds — receiving and disbursing VA payments
• Ensuring funds are used for the veteran's care and wellbeing — housing, food, medical expenses, personal needs
• Submitting annual accountings to VA — showing how every dollar was spent
• Following VA fiduciary guidelines — maintaining separate accounts, keeping records

Even if VA has appointed a fiduciary for you, you have important rights:

• Right to be notified when VA appoints a fiduciary
• Right to appeal the appointment to the Board of Veterans' Appeals
• Right to request VA replace the current fiduciary with a new one if you believe they are not acting in your best interest
• 1 year from the date of the notification letter to exercise decision review options

How to Challenge a Fiduciary Decision

You have three options within 1 year of the decision:

1. Supplemental Claim — submit new evidence showing you can manage your finances
2. Higher-Level Review — request a more senior reviewer examine the decision
3. Board Appeal — appeal to the Board of Veterans' Appeals

Fiduciary fraud — where a fiduciary steals or misuses a veteran's benefits — has been a persistent problem. The Veterans' Fiduciary Fraud Reimbursement Act (passed 2025) significantly strengthens protections:

• VA must repay stolen benefits in full to the veteran
• Reimbursement applies even if the veteran dies before the theft is discovered — funds go to the veteran's estate or beneficiaries
• This is a significant improvement over the previous system, where victims of fiduciary fraud had limited recourse

Signs of Fiduciary Fraud

• Basic needs not being met (housing, food, medical care)
• Fiduciary refusing to provide financial accounting
• Unexplained withdrawals or expenditures
• Fiduciary not submitting annual accountings to VA
• Veteran not receiving spending money or personal allowance

If you suspect fraud, report it to VA Inspector General at va.gov/oig/hotline or call 1-800-488-8244.