A fiduciary is someone who has undertaken to act for and on behalf of another in  a relationship of trust and confidence.  A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the “principal”): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.

The purpose of the Department of Veterans Affairs Fiduciary Program is to safeguard VA benefits received on behalf of minors and incompetent beneficiaries through effective supervision.  When a person does not have legal capacity to handle their own affairs and have been awarded Veterans Benefits, a fiduciary may be appointed.  This person may be court appointed or appointed by the VA.   The VA has specific rules on what a fiduciary can and cannot do.  As a fiduciary approved by the VA, you cannot:

  • Make cash disbursements or write checks payable to cash

  • Mix VA funds with your own personal funds

  • Make major purchases without VA approval

  • Make gifts without VA approval

  • Borrow or loan money from the beneficiary’s funds

  • Purchase a home, or other real estate, without first seeking VA approval and court appointment