Any advice on applying to the VA to become a fiduciary for my parents?

Next friday we meat with tge person from VA to set up account for mom. She has been rec payments since June and they are just now getting around to set up fiduciary account. My sister will be the account manager, she only needs to provide 2 people who will testify that she is honest. Thankfully they are only holding one months payment because her claim was put through so quickly. Like i said we meet next friday, after the meeting i will share any news about the process I think my benefit others.

Well if you get $12,000 from the VA, there should also be $12,000 in expenses to offset the income, so it should be a net nothing. See your tax consultant.

Is the "Aid and Assistance Benefit" non-taxable? I called the VA near me, and he said that it "WAS" taxable because my Mom was not the Vet but was the only the spouse.

Rikoshay - My Dad is over 65, so is it true that a dr statement would not be required? We are thinking about filing for Veteran w/sick spouse for right now since that is the more severe case and waiting to file A&A when he has more need for himself. They are both dependent by my mother is bed bound.

Has anyone had experience with the "Veteran w/sick spouse" benefit?

If your veteran is over 65 a statement from a Doctor is not need if he or she resides in a nursing home. It is assumed by VA that if over 65 they qualify medically. If the doctors statement is submitted and it implies any degree of incompetency a competency investigation will be required for any retroactive payment or any increase in aid and attendance. If you fit this case do not submit a doctor statement. It will delay delay delay.

I went to wells and Fargo. I didn't have a problem at all. I just took the papers they mailed.

I was just appointed fidiuary for my mom. A field agent came to her home. They asked her a couple of questions to see if she could answer them. Her birthday and address. She couldn't answer. They asked me some questions and then I signed a few papers. It took a few weeks to receive the letter appointing me. It was no big deal.

We set up a fiduciary account for direct deposits at Bank of America just by having them fill out a form provided by VA.

To require a beneficiary to obtain a court order would impose an unreasonable hardship considering that financial assistance is awarded based on need.

Great post everyone, helped us! One question however... I have spoken to a few banks and they will not set up a fiduciary account without a court order. I imagine once the VA approves me as fiduciary that they will require me to set up the proper acct - but that their finding doesn't count as a court order. So how and where did everyone set up the bank account? Do you have any names of banks or credit unions that allow this?

I just found this site. American Veterans Aid for aid and assistance. It is for war era Vets and their spouses. They do not have to retire from the service.
ELIGIBILITY
The veteran must meet at least one of the following criteria:
• Must be 65 years of age or older with limited or no income; OR
• Must be receiving Social Security Disability Insurance; OR
• Must be a patient in a nursing home; OR
• Must be permanently and totally disabled; OR
• Must be receiving Supplemental Social Security Income.

Since the Basic Pension is needs-based, the VA takes into account the veteran’s annual countable income, family composition and medical expenses when calculating financial eligibility and their monthly pension amount.
Congress sets a Maximum Annual Pension Rate (MAPR) each year, which also functions as the maximum income cap for eligible veterans. For 2015, a veteran’s countable household income must be less than $12,868 annually in order to be financially eligible.
“Countable” means that the veteran may deduct a number of different sources of income and expenses from their household total. The following table lists some of the common sources of income that do and do not count towards calculating VA Pension eligibility as well as expenses that are deductible.

The VA like any other government entity will make you jump through hoops and swim through waves of paperwork for any entitlement of a person. It takes time, diligence and and advice from this site to receive it, but at least it is retroactive. The government is more known for its compartmental process than streamlined procedures. Once you get through all the BS bureaucracy things become relatively simple. Good Luck!!!!

GraceH, the survivor would be a spouse or dependent of one who died, not necessarily in the war, could be recent. But I don't think one gets benefits just because one was in the war, I would think you had to retire from the service and have a pension, or have a disability payment. Else what would the payment be? I bet ferris knows....

Grace, the VA will help the vet or his widow, even if he died after the war. go to va.gov and look for benefits for spouses, meaning wife or husband of the vet. You also need his discharge papers, marriage certificate and forms that are to be filled out by the surviving spouse's doctor.

Does the VA provide payment for my elderly parent whose spouse was in WW2? when I look at the VA website, I get confused, it says "survivor" but does that mean the veteran died during the war? one of my parents was in WW2, honorable discharge at end of the war. They are dead now, but my other parent could use some help.

CAREfor MOMMY, it depends on their financial picture. Assets, income and expenses. In my dad's case, he receives over $1750 a month. Yes, it was time consuming, but for my dad, it was worth it. It is helping us keep him off welfare for the time being which is a headache, I don't want to take on until absolutely necessary. They are worse to deal with AND you have to give back to them in the end. But that is another story.

How much is to be expected to be given.
Is it worth the "paperwork BS" to go through all of the Government forms and beauracy to get "how much" ?
( just a ballpark amount, please )

The Fiduciary is also required to open a separate bank account for the VA deposits. The bank account must have both names and indicate the Fudiciary's role- for example, "Jason Smith, Federal Fiduciary for Betty B. Hardin" as well as the Fiduciary's address and contact information. Cash withdrawals are prohibited unless pre-approved by the VA for a specific purpose and immediately followed by acceptable documentation (usually an official receipt). Very detailed and exact records of all disbursements (via check) also must be maintained and available for review by the VA at any time. They usually require a periodic (quarterly or annually) accounting of how the funds have been used and a reconciliation of deposits vs. disbursements + the current bank account balance (matching to the penny)!

The accounting and record-keeping requirements are the main reason a Fiduciary is required. The VA couldn't require that the funds be kept separate or be able to demand such detailed record-keeping otherwise. They would be forced to challenge the POA in court to accomplish that and they could only do that if there was legitimate suspicion of impropriety.

They are protecting the beneficiary and VA funds, which I can appreciate. If only the VA was so thorough, competent and efficient anywhere else within the orgnaization, life would be much easier for our Veterans! =)

Looking back over the process, it may be that the Federal Fiduciary is required because of the sizable retro deposit. Prior to the release of the funds, the regular monthly allotment was deposited into his regular account. Once the Fiduciary account was set up, all deposits are under the rep payee account.

I am required to call and let them know when I am making withdrawals and the amounts. They will send me a form for a detailed accounting. This will continue until I spend down to less than $10,000.

That is perhaps the difference. However, because it takes so long for the application process to be approved, depending on the amount of the monthly assistance, your retro deposit will be more than $10K.

If the VA sends a check in the vet's name, a POA can deposit the check as the vet wishes or directs. Perhaps this is improper, but I don't think so. However, I didn't know that once a declaration of incompetence or mental impairment, a Fiduciary is a requirement. That is important to know. Thanks!

To the VA, a POA has no validity and they do not recognize it for any purpose.

The documents required to file for the Aid & Attendance Pension include a Physicians’ Statement with the applicants diagnosis and prognosis, ability to care for self, ability to do routine tasks such as getting dressed, grooming, preparing meals and state that their safety and health require them to have assistance most/all of the time. If the applicant has Alzheimers’, dementia or is otherwise considered to be mentally incompetent, the doctor also needs to clearly state that also.

When the VA finally makes a determination, if they approve the application and the applicant has Alzheimers’ or is otherwise mentally impaired, they will notify you that a Fiduciary must be assigned to represent the applicant. They will also advise you that a Field Agent must meet and interview both the applicant and the prospective Fiduciary. If the applicant is in a Nursing Home or other facility, the Agent will come there to conduct the interview. If they see that the person is incapable of being interviewed due to the physical or mental condition, they will just interview the Fiduciary candidate and note the applicant’s condition.

FYI- If you have ever been convicted of a felony or have filed bankruptcy in the past 10 years, the VA will not allow you to be the Fiduciary.

After the interview, the VA conducts a thorough background investigation including criminal background, credit history and contacting multiple character references. After completing their investigation, they will either approve or deny your request to be the Fiduciary. In the vast majority of cases, with the two exceptions mentioned above, the Fiduciary will be approved.

MY EXPERIENCE- I applied for the A&A benefit for my great-aunt who had severe Alzheimer’s disease and lived in the Memory Care Unit of a Nursing Home. Her daughter (my 1st cousin once-removed and also my best friend) lives in L.A. and my great-aunt and I were in Georgia. My cousin wrote a letter requesting that I be appointed Fiduciary with her complete blessing and utmost faith that I was the best possible candidate. My great-aunt couldn’t even utter more than one or two unintelligible syllables, but the Field Agent had to meet her face and face to validate the doctor’s and our claim about her mental state. Within 60 seconds of meeting her, the Agent was satisfied that she was mentally incompetent and she only needed to interview me.

She (the Agent) expressed some initial concern that a ‘distant relative’ (her words) wanted to be the Fiduciary and asked me if a more closely related relative might be a better choice. Luckily, I brought a photo album with me that showed my great-aunt and great-uncle together on their farm at least 25 different times during my childhood. I also had letters my great-aunt had written to me when they went to South Korea for two years on an assignment for Lockheed and a few other items that showed how close we had been my entire life. Most great-nephews may be ‘distant relatives’ but I certainly was not!

I was approved within four weeks and they issued payment dating back to the initial application date. Sadly, my great-aunt died two weeks after receiving that check. But she didn’t have life insurance and the retro-payments for 10-months covered most of her funeral expenses. So the money was a blessing and, to be honest, the fact that she died peacefully and with me and her daughter by her side was very merciful and I am thankful that I no longer have to worry that she might be suffering…..

ThereIsNoTry... If you are using Federal funds, a financial POA is not recognized.

In my case, I am the POA for my dad which allows me to handle any financial assets, including property, banking, investments, insurances, etc.on a State level. However, when I applied for a financial pension for assistance with his living expenses, the Federal government has different regulations on who has authority to disburse funds on behalf of the beneficiary.

When I filed the initial forms, I had my father sign Form 21-4138 which said that "I would like the following representative to be appointed as my fiduciary". This form also has the Veteran state that "I may be unable to handle my benefit payments".

Once a background check has been done and you have met with the Area Fiduciary Hub Field Examiner, he makes recommendation to the Department of Veterans Affairs based on his findings. In my case I have been made his legal custodian for finances and my title is Representative Payee for.....

Also these funds can be used to pay for any assisted living or nursing home your loved one resides in. It does not have to be just a VA home.

How is fiduciary different from having POA, is it just that the VA doesn't recognize POA so you need it if he goes to a VA ALF? As POA, can't you just deposit the VA check as needed and pay the bills? thanks.........

You will have a background check and also if you have a prior bankruptcy you can;t qualify for fidicuary due to VA rules.

Wow, I could write a book here on my experience with this, but will try to make it short. I already had my POA in place when I applied for financial assistance to help with the expenses of an Assisted Living Facility. POA is not recognized by the Fed. In order to qualify, dad had to have served in the military during active wartime, and an honorary discharge from service. A physical from a VA doctor that showed he was in need of physical assistance for his care was necessary and a form signed by the doctor. (This doctor was not overly cooperative, which made this difficult. He did not want to sign the form, but finally did. I called the VA and they put me in touch with the local state VA Service Officer. He told me what forms I would need and I downloaded them, filled them out, scanned them into my computer so that I would have copies. I suggest you keep copies of EVERYTHING. Any form, must be kept. You have no idea of how many calls were made because, all of a sudden a certain must have form was missing from the file. Also, I actually sit with my laptop and type as I am speaking to any representative to keep accurate records of all phone calls. Who I spoke with, date and time. This is important when dealing with representatives of any company you are dealing with for your parents. For each person you talk to, you are likely to get a different answer. When I spoke to the rep, he suggested I have dad sign a form that waived his rights to act on his own financial needs and to indicate who he would like to have me act on his behalf. Everything was submitted by 11/1/12. That is when the 6 to 12 month wait starts. I was notified a couple of times that they were still working on it. By August of 2013, I was notified that dad qualified for assistance as of 12/1/12. There would be a retroactive payment once I had been appointed Fiduciary by the Fed for the VA. They indicated that I was to be made Financial Fiduciary but would have to meet with the VA Fiduciary Hub Field Officer to determine dad's monthly expenses and also for him to meet and to talk with my dad personally as well as myself to find out if dad was indeed incompetent and that I was competent. . We did this on 10/11/12. I was notified a couple of weeks later that everything was in order and that I was appointed Legal Custodian of my fathers finances. (The VA only recognizes their own appt, so my POA is insufficient with them). I was told to set up an account which must be set up correctly. The preferred account title is (Name of Beneficiary), by (Name of Representative Payee), representative payee. I did this 11/4/13 and notified them by phone the same day. His monthly allotment was deposited to this account but I had to "wait" for them to "process the approval for release of the retro payment of over $15,000.00. I called often and was told to wait, it could take 2 months, try to be patient. Sure, I only waited over a year. I waited until the beginning of Jan and called the State Representative to ask if they could intervene as I was getting low in funds to keep my dad at the ALF. Finally by the middle of January they released the funds. This was a 15 month long process.

Bottom line, is make sure you listen to what they say, document it, keep copies, make phone calls, make phone calls, make phone calls. Make sure you have EVERY form they want. If you forget any form, they can hold it up for a longer period of time. It is hard to wait, but your father deserves the assistance. Don't give up. I hope this helps.

To become a fiduciary for a family member or friend, submit a request with the beneficiary‘s name and VA file number, and your name and contact information to the VA regional office nearest you.
Any individual appointed as a VA fiduciary is responsible for managing the beneficiary‘s VA income and ensuring the beneficiary‘s just debts are paid.
I hope this helps!! Thanks

To become a professional fiduciary, submit your resume with cover letter to the following e-mail address: VA_Fiduciary@va.gov. Include your name, the name of your organization (if applicable), mailing address, and e-mail address with your request.

Recently, I was appointed fiduciary for my mother (95) as part of a process which began when we applied for surviving spouse benefits in April of 2012.

The help of the local VA office was valuable to assure the initial paper work was done correctly. Then after a year had passed without action, we enlisted the aid of U.S. Sen. Bill Nelson (Florida). His staff has been a big help. Even so, Mom did not begin to receive payments -- and a very small amount at that -- until September of 2013.

In addition, the fiduciary process was necessary because Mom has a medical diagnosis of dementia and is deemed by the VA to be incapable of handling her own funds. My application to serve in this capacity went in with her original paperwork in 2012. The way this works is that a regional VA office screens applications and then sends a field examiner to the prospective fiduciary's home to check out the applicant and complete the paperwork.

Since Mom qualifies for VA “Aid and Attendance,” her benefits accrue from the date of her initial application in 2012. After a fiduciary is approved, a special bank account must be set up to receive monthly benefit payments. Hopefully this will take place during the February 2014 payment cycle. We also are waiting to receive the amount accrued since her application was filed.

Meanwhile, I am plowing through additional paperwork to update Mom's application to more realistically show the non-reimbursable expenses for medical treatments and tests, prescription co-pay, personal care supplies, etc. Hopefully she will live long enough to have her benefit increased to a more helpful amount.

At every level, the VA seems to be terribly understaffed, overloaded and inadequately funded. I have contacted elected federal officials to request that they correct these deficiencies. After all, our veterans gave their service and in many cases their lives. It's just wrong for the government not to live up to the promise to take care of former military and their loved ones.

Also, the application process and subsequent paperwork should be streamlined so it's a lot more user-friendly. There is no way the average elderly person could handle this on their own.

Of course we complain to each other to let off steam. But if anything constructive is going to happen, we also must put pressure on the elected officials who represent us. Please join me in doing so. Their names and contact information are readily available via Internet.

Congratulations on the approval. I went through this process for my mom a few years ago. Once the approval went through it was all very simple. VA sent a second letter and a form to complete for the appointment of a fiduciary. A VA representative visited and helped us complete the form and gave instructions for setting up the bank account.
I know every case is different but, as a previous poster stated, your local VA office can offer excellent assistance.
The application process was rough but since the approval everything has been very smooth. Mom's VA reps have been very, very helpful and VeteranAid.org is a great resource as is VA.gov.

Good luck!!

Good for him! We are still waiting. Wait for the letter because VA is so-o-o particular about what they want, and if you do not do as they say, they might deny the benefit.

If and when the VA names you as fiduciary, the document they provide will be sufficient, IF you go to a bank that knows about setting it up. I tried 3 smaller, community banks, none of which seemed to know what they were doing and all requiring various documentation, etc. I finally called Bank of America and they knew what I was talking about and were able to set it up in no time flat. In the meantime, I spent weeks figuring this out, so I hope this will save you some time. Good luck!

If you have a VA office close to you, I would physically go and talk to them. That way, you can get whatever forms and information you need.

The Marines help with things like this a little bit, too. They helped my Mom get signed-up for her Tricare-for-Life health benefits, but I don't know how much other help they do/can provide. The Marines, by the way, do this for all service branches, and they are truly awesome and wonderful for doing all this, but probably can't help with this more complex issue.