Overview
In This Section |
This section contains the following topics:
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1. General Authorization Issues in Fiduciary Cases
Introduction |
This topic outlines general authorization issues in fiduciary cases, including
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Change Date |
May 16, 2018
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III.v.9.C.1.a. Outdated Fiduciary Appointments and Certifications |
Do not process an award to a guardian or other fiduciary
Before the authorization activity may process an award under these circumstances, the fiduciary hub must provide either Department of Veterans Affairs (VA) Form 21-555, Certificate of Legal Capacity to Receive and Disburse Benefits, or other notice showing that the appointment or certification remains in full force and effect.
If necessary, request a current VA Form 21-555 by preparing a memorandum to the fiduciary hub, furnishing all of the pertinent information described in M21-1, Part III, Subpart v, 9.A.1.c.
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III.v.9.C.1.b. Processing Awards to Joint Guardians |
In cases of joint guardianship, make all awards payable to the guardians as joint payees as shown on the fiduciary hub’s certification.
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III.v.9.C.1.e. Handling a Change in the Name of a Beneficiary, Guardian, or Fiduciary |
Use the table below to determine the proper action to take upon receipt of notice of a change in the name of a beneficiary, guardian, or fiduciary.
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III.v.9.C.1.f. Notifying a Fiduciary Hub of Changes and Additional Information Regarding a Beneficiary and/or Fiduciary |
Use the table below to determine what to provide to a fiduciary hub when notifying the fiduciary hub of various types of changes or additional information regarding a beneficiary and/or fiduciary.
Note: Correspond with fiduciary hubs via e-mail.
Reference: To determine the fiduciary hub of jurisdiction, see the M21-1, Part III, Subpart v, 9.A.1.d.
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III.v.9.C.1.g. Handling Retroactive Awards of Less Than $25,000 to Beneficiaries Under Fiduciary Supervision |
When a retroactive award to a beneficiary under fiduciary supervision amounts to less than $25,000
Note: The fiduciary hub reviews the award to determine any effect it may have on the beneficiary or fiduciary arrangement.
Reference: For information about contacting a fiduciary hub and fiduciary hub jurisdiction, see M21-1, Part III, Subpart v, 9.A.1.d.
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III.v.9.C.1.h. Handling Retroactive Awards of $25,000 or More to Beneficiaries Under Fiduciary Supervision |
When a regional office’s (RO’s) authorization activity identifies a proposed retroactive award to a beneficiary under fiduciary supervision that amounts to $25,000 or more, the authorization activity must e-mail a memorandum to the fiduciary hub of jurisdiction for review to ensure all necessary protection and accounting requirements are in place prior to authorization of the award.
Important: ROs may not authorize the proposed award until the fiduciary hub
Note: The proposed award shall remain in a “generated” status to control for the pending fiduciary hub review and action.
References:
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III.v.9.C.1.i. RO Actions After a Fiduciary Hub Completes Its Review of a Case Involving a Pending Retroactive Award of $25,000 or More |
Use the table below to determine the actions an RO must take after a fiduciary hub completes its review of the type of case described in M21-1, Part III, Subpart v, 9.C.1.h.
Note: When authorizing an award with retroactive benefits over $25,000, a third signature (concurrence) will be required by the Veteran Service Center Manager or designee no lower than a Coach.
Reference: For more information about awards that require a third signature, see the
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2. Authorizing Awards Involving a Fiduciary for a Minor or Incompetent Adult
Introduction |
This topic contains information on authorizing an award that involves a fiduciary for a minor or incompetent adult, including
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Change Date |
May 16, 2018
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III.v.9.C.2.a. Fiduciary Hub Certification Requirement for Court-Appointed Fiduciaries |
When a court appoints a fiduciary for a minor or incompetent claimant, do not make payments to the fiduciary until the fiduciary hub furnishes VA Form 21-555.
After receiving court documents indicating the appointment of a fiduciary from anyone other than the fiduciary hub,
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III.v.9.C.2.b. Authorizing an Award for a Certified Fiduciary-Payee |
Follow the steps in the table below when a fiduciary hub furnishes VA Form 21-555to the authorization activity.
Note: Fiduciary hubs typically authorize awards for certified fiduciary-payees, but there are circumstances under which ROs must authorize these awards.
Example: ROs must authorize awards associated with
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III.v.9.C.2.c. References for Special Authorization Procedures |
For information on special authorization procedures for a(n)
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3. Controlling Awards for Children
Introduction |
This topic contains information on controlling awards for children, including
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Change Date |
May 16, 2018
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III.v.9.C.3.b. Establishing a Diary When Awarding Benefits to a Fiduciary for a Minor |
When an award is made to a fiduciary for a minor, establish a diary under diary code 20, Helpless Child Reaches Majority, that will expire three months before the date the child reaches the age of majority, so as to allow sufficient time to determine the propriety of making direct payments to the child.
References: For more information about
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III.v.9.C.3.d. Establishing a Diary When Awarding Benefits to a Fiduciary for a Mentally Incompetent Minor |
When awarding benefits to a fiduciary for a minor whom the rating activity has determined is incapable of self-support due to mental incompetency,
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III.v.9.C.3.e. Establishing a Diary When Awarding Benefits to a Fiduciary for a Physically Incapacitated Minor |
When awarding benefits to a fiduciary (including one recognized under 38 CFR 3.850(c)) for a physically incapacitated child, only because the child is a minor,
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III.v.9.C.3.f. Establishing a Diary When Awarding Benefits to a Fiduciary for a Minor Who Is Attending School |
When awarding benefits for a child to a fiduciary or a parental custodian (only because the child is a minor), take the following actions if the child is over age 18 and attending school:
Note: The proper effective date for direct payment is the later of the following dates:
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III.v.9.C.3.g. Statutory Change in the Age of Majority |
Statutory changes in the age of majority make it necessary to authorize direct payment when
Note: Fiduciary hubs routinely identify beneficiaries under their jurisdiction that are affected by the enactment of a law that lowers the age of majority.
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III.v.9.C.3.h. Authorizing Direct Payment Due to a Statutory Change in the Age of Majority |
To authorize a direct payment because of a statutory change in the age of majority,
Exception: If payments are being made through a court-appointed fiduciary, refer the request for direct payment to the fiduciary hub before making any change.
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III.v.9.C.3.i. Retroactive Benefits in an Award to a Child Who Has Reached the Age of Majority |
Per 38 CFR 3.403(a)(2), when awarding benefits to a child on or after the date he/she reaches the age of majority, include in the award any retroactive benefits owed to the child, even if the benefits are for a period of time during which the child was a minor.
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4. Authorizing Awards Involving a Custodian Under 38 CFR 3.850(c)
Introduction |
This topic contains information on authorizing awards involving a custodian, including
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Change Date |
May 16, 2018
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III.v.9.C.4.a. When to Authorize an Award Under 38 CFR 3.850(c) |
Per 38 CFR 3.850(c), make payments to a custodian on behalf of a minor child without prior submission to, or certification by, a fiduciary hub when the following conditions exist:
Note: If the custodian to be recognized is the natural or adoptive parent or stepparent, establish that a legal relationship exists.
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III.v.9.C.4.b. When Not to Authorize an Award Under 38 CFR 3.850(c) |
Do not authorize an award under 38 CFR 3.850(c) when any of the following situations exist:
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III.v.9.C.4.c. Authorizing an Award Under 38 CFR 3.850(c) and Notifying the Custodian |
Follow the steps in the table below to authorize an award under 38 CFR 3.850(c)and notify the custodian.
Important: Make no award under 38 CFR 3.850(c) for an incompetent adult child who is incapable of self-support. Instead, request the appointment or certification of a fiduciary, per M21-1, Part III, Subpart v, 9.A.1.a.
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III.v.9.C.4.d. Handling the Certification of a Fiduciary After Authorizing an Award Under 38 CFR 3.850(c) |
In some cases, the custodian recognized by the authorization activity is found unsuitable to act in a fiduciary capacity. When this occurs, the fiduciary hub may
When an award to a custodian has been authorized under 38 CFR 3.850(c), and the fiduciary hub subsequently certifies the same or a different person as fiduciary, make payments to the person certified by the fiduciary hub.
Note: If the only action taken is the change or removal of a fiduciary, a notice of proposed adverse action is not required.
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III.v.9.C.4.e. Actions to Take When a Custodian Ceases to Have Custody of a Child Beneficiary |
If the authorization activity learns that a custodian recognized under 38 CFR 3.850(c) ceases to have custody of a child beneficiary,
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5. Authorizing Awards Involving a Native American Minor or Incompetent Adult Under 38 CFR 13.62
Introduction |
This topic contains information on authorizing awards involving a Native American minor or incompetent adult under 38 CFR 13.62, including
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Change Date |
May 16, 2018
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III.v.9.C.5.a. Awards Under 38 CFR 13.62 to a Bonded Officer of the Native American Reservation |
Under 38 CFR 13.62, an award for the use of a Native American beneficiary may be paid to the recognized superintendent or bonded officer of the Native American Reservation. Send VA Form 21-592 to the fiduciary hub for certification of the payee before processing the award.
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III.v.9.C.5.b. Payee for Awards Authorized Under 38 CFR 13.62 |
Do not enter the name of the superintendent or bonded officer of the Native American Reservation as the payee when authorizing an award under 38 CFR 13.62. Enter the following instead: Bureau of Indian Affairs [name of agency or regional office], for [name of Native American beneficiary].
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5-16-18_Key-Changes_M21-1III_v_9_SecC.docx | May 16, 2019 | 148 KB |
Change-July-23-2015-Transmittal-Sheet-M21-1III_v_9_SecC_TS.docx | May 16, 2019 | 43 KB |
6-30-16_Key-Changes_M21-1_III_v_9_SecC.docx | May 16, 2019 | 130 KB |
Transmittal-Sheet-pt03_sp05_TS_2-9-11.docx | May 16, 2019 | 38 KB |
in Chapter 9 Authorizing Awards for Incompetency and Fiduciary Cases, Part III General Claims Process, Subpart v General Authorization Issues and Claimant Notification
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