Who needs a Veterans Administration Fiduciary Surety Bond?
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. 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. If it is determined 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.
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.
What is the purpose of a Veterans Administration Fiduciary Surety Bond?
These license and permit surety bonds guarantee the proper handling of the beneficiary’s funds and ensures compensation for any losses incurred due to the fiduciary’s mishandling of said funds. If the principal engages in unethical or unlawful practices, a claim can be filed with the surety company for relief.
If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then responsible for reimbursing the surety for all monies paid out, including any attorney fees incurred by the surety in defense of the claim.
How much are Veterans Administration Fiduciary Surety Bonds written for?
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% in the VA benefit funds and furnish proof of the adjustment to the VA no longer than 60 days after the change.
How much does a Veterans Administration Fiduciary Surety Bond cost?
Pricing for Veterans Administration Fiduciary Surety Bonds varies. An underwriter will review your application and your premium will be based on the following factors:
- Amount of the Bond
- Personal Credit of the Fiduciary
Individuals with good credit can expect to pay between 1% and 5% of the bond amount. This means qualified applicants could pay as little as $500 annually for a $50,000 surety bond. To find out how much your Veterans Administration Fiduciary Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Veterans Administration Fiduciary Surety Bond with bad credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Veterans Administration Fiduciary Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is.
Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond.. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I get a Veterans Administration Fiduciary Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7837 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.