The U.S. Department of Veterans Affairs (VA) established the Fiduciary Program to protect veterans and other beneficiaries who, due to injury, disease or age, are unable to manage their financial affairs. Once a determination is made that a beneficiary is unable to manage his or her financial affairs, the VA will appoint a fiduciary to manage their interests and assets. The fiduciary is normally chosen by the beneficiary and must undergo an investigation of their suitability to serve before being appointed by the VA. Generally, family members or friends serve as fiduciaries, but if there are none available, the VA will appoint a qualified individual or organization to serve.
Per Title 38-Chapter 1-Part 13 of the Electronic Code of Federal Regulations, a fiduciary who manages more than $25,000 of VA funds for the beneficiary is required to submit and maintain a surety bond with the VA. This surety bond guarantees the proper handling of the beneficiary’s funds and ensures compensation for any losses incurred due to the fiduciary’s mishandling of said funds. Those who are not required to have a surety bond include the beneficiary’s spouse, a trust company or bank, and fiduciaries in the Commonwealth of Puerto Rico, Guam or other United States territories.
The bond amount for Veterans Administration Fiduciary Surety Bonds varies and is dependent on the value of the estate the fiduciary will be managing. The fiduciary is also required to adjust the bond amount to account for any increase or decrease of more than 20 percent in the VA benefit funds and furnish proof of the adjustment to the VA no longer than 60 days after the change.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.