When a beneficiary is deemed incompetent due to age, illness, or disability, the Department of Veterans Affairs (VA) will appoint a fiduciary to manage their benefit payments and finances. If the fiduciary manages more than $20,000 in VA funds for the beneficiary or their dependents, they must obtain a surety bond in accordance with 38 U.S. Code § 5507. The bond protects the beneficiary and their dependents from financial harm if the fiduciary mishandles their funds or engages in unethical behavior.
Have any questions? Give us a call at (855) 470-0877 and speak to a live Veteran Affairs fiduciary bond expert.
The bond limit is set by the VA and is based on the amount of benefits that the fiduciary manages. The required bond amount is explicitly stated in a letter sent out to the fiduciary once they are appointed and take control of the funds. Jet requires the fiduciary to submit a copy of the letter during the application process to verify the correct bond amount.
Jet charges a minimum of $150 for VA Fiduciary Bonds, and the price is typically just a percentage of the bond limit. Underwriting, which evaluates the required bond limit and credit history, will determine the approved rate. Click the “Get a Quote” button or call us at (855) 470-0877 above to find out how much your bond will cost.
When a fiduciary is appointed to manage funds for a beneficiary, the VA will require a surety bond according to 38 U.S. Code § 5507. The bond safeguards the veteran’s funds and serves as a form of insurance that guarantees the responsible and ethical behavior of the fiduciary.
By requiring a bond, the VA can help mitigate loss from mismanagement or misuse of the beneficiary’s funds by the fiduciary and help ensure they act according to 38 U.S. Code Chapter 61. The bond can also compensate the veteran and their beneficiaries for any losses incurred due to the actions of the fiduciary.
Fiduciaries are not required to obtain a surety bond in the following situations:
Fiduciaries of Veteran Affairs must navigate several steps before becoming appointed. Below are the general steps for appointment, but applicants should refer to the Department of Veteran Affairs’ Fiduciary Program Fact Sheet and their Guide for VA Fiduciaries for details.
Step 1 - Determine Priority
Priority to serve as a VA fiduciary is granted in the following order:
Step 2 - Submit a Request to the VA
To become a fiduciary for a family member or friend, you must first submit a request with the beneficiary‘s name, the VA file number, and your contact information to the VA regional office nearest you. Jet has provided a chart at the bottom of the page with a list of each regional office in the country and any available contact information for their offices.
Step 3 - Meet the Qualifications
Once a request is submitted, fiduciaries must undergo an assessment of qualifications to determine if they are suitable for appointment. The Veteran Affairs will evaluate the following factors when considering an applicant:
Fiduciaries who have suitable qualifications based on the criteria listed above will be appointed by the Veteran Affairs, at their discretion. Once appointed, fiduciaries will become responsible for the beneficiary’s funds and will have a host of responsibilities as outlined below.
Fiduciaries have several key responsibilities to the beneficiary and their dependents, such as managing their funds and ensuring their debts are paid. The primary duties are outlined in 38 CFR § 13.140 and include the following:
Jet’s application process is simple and fast - our goal is to get the fiduciary bonded as quickly as possible so they can focus on their obligations. All we need is the bond amount and basic information about the case.
Once completed and submitted, you will receive your purchase price immediately or a Jet underwriter will review the application. Fiduciaries must also upload a copy of their bond requirement letter from the VA to verify their required bond amount.
When you purchase the surety bond, you will immediately receive an email with a copy of your bond and receipt. Jet will sign the bond form, attach our raised seal, and mail it to you. You simply need to sign the form as the principal and deliver it to the regional VA office in your area.
See the chart at the bottom of the page with a list of all regional VA offices and any available contact information for their offices.
At Jet, we like to make things easy for our customers, and cancellation of your bond is no exception.
To cancel your bond, send us an email at [email protected] or give us a call. When we receive your request, we will process the bond cancellation and return all unearned premium. This bond remains active up to 30 days after Jet files cancellation with the Department of Veteran Affairs.
Additionally, if the fiduciary does not renew their bond, Jet will send a cancellation notice to the VA, and the bond will be canceled if no renewal payment is received.
The Department of Veteran Affairs requires that the bond remain on record throughout the fiduciary's entire appointment period until the beneficiary is no longer in need of a fiduciary or is removed by the VA. Until that point, the court requires that the bond remains active.
As for renewing your bond, Jet sends a renewal invoice by email and mail before the bond term’s expiration date. As long as you pay for renewal, the bond will remain active with the Department of Veteran Affairs.
The Department of Veteran Affairs expects the fiduciary to act in accordance with all regulations and guidelines established under law. 38 U.S. Code Chapter 61 outlines many of the prohibited activities and behaviors that can lead to a bond claim. Some common examples include the following:
Jet works tirelessly to protect fiduciaries against faulty claims. Even if the court has requested a bond payout, we assess all documentation provided by the court and the fiduciary before paying out the claim. However, as a fiduciary and indemnitor, you will ultimately be required to reimburse Jet Insurance Company for the full claim payout.
Below is a list of all the fiduciary hubs for the VA across the country, as well as their contact information and lists of each hub’s covered states. For all general questions, fiduciaries can contact the VA by phone at (888) 407-0144 or visit their website here.
|Regional Hub Name
|Lincoln Fiduciary Hub
|KS, ND, NE, OK, SD, TX
|PO Box 5444
Lincoln, NE 68505
|Milwaukee Fiduciary Hub
|AR, IA, IL, LA, MN, MO, WI
|PO Box 14975
Milwaukee, WI 53214
|Salt Lake City Regional Office
|AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR,UT, WA, WY
|PO Box 58086
Salt Lake City, UT 84158
|Indianapolis Fiduciary Hub
|CT, DE, IN, MA, MD, ME, MI, NH, NJ, NY,OH, PA, RI
|PO Box 441480
Indianapolis, IN 46244
|Columbia Fiduciary Hub
|FL, GA, NC, SC
|1800 St. Julian Place, Suite 305
Columbia, SC 29204
|Louisville Fiduciary Hub
|AL, KY, MS, PR, TN, VA, WV
|PO Box 3487
Louisville, KY 40201
|VA Fiduciary Hub Intake Center
|PO Box 95211
Lakeland, FL 33804