VA fiduciary bonds serve to protect veterans who have experienced mental health trauma or diseases that render them incapable of managing their finances on their own.
In situations where veterans or their families are deemed mentally incompetent and unable to manage their finances, these bonds ensure veterans will have a fair chance at reestablishing their lives with the help of their appointed fiduciary.
If you have found yourself involved in a situation where you are being appointed as a fiduciary to a disables veteran, or you are a veteran who is looking to better understand how you are protected by VA fiduciary bonds, here is everything you need to know.
How much does a VA fiduciary bond cost and how do they work?
As mentioned, fiduciary bonds serve the main purpose of protecting veterans who are otherwise unable to manage their financial affairs.
In most cases, the VA will look to close friends or family members of the veteran to serve as the main fiduciary, appointing that person to be in charge of everything from paying the veterans bills on time, to filing taxes and overall ensuring the well-being of the disabled veteran.
In terms of cost, VA fiduciary bonds will be priced depending on how much coverage is needed based on the size of the estate that will be managed.
VA Fiduciary Bonds: A Deeper Look
No two veterans' stories are the same. For a better perspective into how fiduciary bonds work, the following is an example of how VA fiduciary bonds benefit disabled veterans.
In 2010, a veteran who served the country for 24 years was deemed incompetent to manage his own finances, requiring a fiduciary to be appointed to manage several aspects of the veteran’s affairs. The veteran’s son requested to be appointed as the main fiduciary over his father and was granted the title.
The newly appointed fiduciary was able to claim all back pay payments from the regional veteran's office, totaling nearly $400,000, ensuring the veteran was able to have immediate access to his funds through his son's supervision.
In conclusion, VA fiduciary bonds allow veterans to retain control over their finances, estates, and benefits without having to pay extensive fees charged by fiduciaries that work for the court if appointed to family members or relatives of their choice.
For more on VA Fiduciary bonds, or if you have any questions on how to become appointed as a fiduciary, contact us here.