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Updated Apr 06, 2024

In This Section
This section contains the following topics:

1.  General Authorization Issues in Fiduciary Cases

Introduction
This topic contains general authorization issues in fiduciary cases, including

Change Date
September 29, 2022

X.ii.6.E.1.a.  Outdated Fiduciary Appointments and Certifications
Do not process an award to a guardian or other fiduciary
  • based on a fiduciary hub (hub) appointment or certification that is more than one year old, and
  • to whom no payment has been made for one year.
Before the authorization activity may process an award under these circumstances, the hub must provide either VA Form 21P-555, Certificate of Legal Capacity to Receive and Disburse Benefits and Fee Authorization, or other notice showing that the appointment or certification remains in full force and effect.
If VA Form 21P-555 is not of record, request it by preparing a VA Form 21-592, Request for Appointment of a Fiduciary, Custodian or Guardian, and submitting it to the hub of jurisdiction.

X.ii.6.E.1.b.  Minor Beneficiaries With Multiple Custodial Parents
If it appears more than one natural or adoptive parent is the custodian of a minor, refer this information to the hub of jurisdiction.  The hub will advise which parent to pay.
If a current VA Form 21P-555 is not of record, request it by preparing VA Form 21-592 and submitting it to the hub of jurisdiction.
Note:  For the purpose of this section, a minor is an individual that has not yet reached the age of majority as set forth in M21-1, Part X, Subpart ii, 6.E.3.c.

X.ii.6.E.1.c.  Handling Irregularities in the Names on Documents in the Claims Folder
The names of claimants and their custodians must match the names shown on
  • the claimant’s application for benefits
  • documents establishing the existence of a custodial relationship, and
  • VA Form 21P-555.
If the names on the documents referenced in the preceding paragraph do not match, use the names on VA Form 21P-555 when processing an award as long as there is no question of identity.  If there is a question of identity, request clarification from the hub of jurisdiction via e-mail.

X.ii.6.E.1.d.  Handling a Name Change for a Beneficiary, Custodian, or Fiduciary
Use the table below to determine the actions to take upon receipt of a name change for a beneficiary, custodian, or fiduciary.
If …
Then …
  • a beneficiary changed their name, and
  • payments are being made to a Department of Veterans Affairs (VA)-appointed fiduciary or custodian
  • make the change of name without prior approval from the hub of jurisdiction, and
  • ensure any documentation supporting the name change is uploaded to the electronic claims folder (eFolder).
a minor change or correction of the name (not identity) of a fiduciary or custodian is necessary
  • accept a statement setting forth the change/correction without the need for further evidence
  • make the change/correction without prior approval from the hub of jurisdiction, and
  • ensure any documentation supporting the name change is uploaded to the eFolder.
a fiduciary changes their name/identity for any reason following their appointment as a fiduciary
Examples:  marriage, remarriage, divorce, etc.
  • notify the hub of jurisdiction of the change via email
  • upload all relevant correspondence, to include the email sent to the hub, into the corresponding eFolder, and
  • take no further action to change the fiduciary’s name/identity unless requested to do so by the hub.
Reference:  For more information on hub jurisdictions and contact information, see M21-1, Part X, Subpart ii, 6.C.1.d.

X.ii.6.E.1.e.  Notifying a Hub of Changes That May Impact a Fiduciary Appointment or Require a Fiduciary Adjustment
Use the table below to determine the actions to take when the regional office (RO) receives additional information, outside of the Centralized Mail (CM) portal process, that may
  • impact a pending fiduciary appointment, or
  • require a fiduciary adjustment.
If the change or information involves …
Then notify the hub of jurisdiction by e-mail of all relevant facts and …
a pending request for appointment of a fiduciary
upload all relevant correspondence, to include the email sent to the hub, into the corresponding eFolder.
a fiduciary’s
  • loss of constructive custody of the beneficiary, or
  • suitability or fitness to act in a fiduciary capacity
  • upload a copy of the e-mail sent to the hub into the corresponding eFolder
  • include in the notice a statement indicating that payments have been suspended, if such action has been taken
  • establish end product (EP) 290, FID-Fiduciary Adjustment, and
  • associate a permanent note with the beneficiary’s record in the Veterans Benefit Management System (VBMS) that provides the reason for establishing the EP.
Note:  Use of the FID-Fiduciary Adjustment claim label allows National Work Queue (NWQ) to route the EP 290 to the hub of jurisdiction.
References:  For more information on

X.ii.6.E.1.f.  Handling Retroactive Awards Between $10,000 and $25,000 to Beneficiaries Under Fiduciary Supervision
Follow the steps in the table below when the amount of a retroactive award to a beneficiary under fiduciary supervision is between $10,000 and $25,000.

Step

Action
1
Promulgate and authorize the award.
2
Send the decision notice to the custodian/guardian.
3
Ensure the decision notice and award are uploaded into VBMS.
4
Complete and upload a memorandum to the eFolder for the hub to review to ensure the necessary accounting requirements are in place.
5
Establish EP 290, FID-Fiduciary Adjustment.
Note:  Use of the FID-Fiduciary Adjustment claim label allows NWQ to route the EP 290 to the hub of jurisdiction.
References:  For more information on

X.ii.6.E.1.g.  Handling Retroactive Awards to Beneficiaries Under Fiduciary Supervision That Exceed $25,000
When an RO’s authorization activity identifies a proposed retroactive award to a beneficiary under fiduciary supervision that exceeds $25,000, the authorization activity must
  • upload a memorandum to the eFolder for the hub of jurisdiction to review to ensure all necessary protection and accounting requirements are in place prior to authorization of the award
  • establish EP 290, FID-Fiduciary Adjustment, and
  • e-mail the hub of jurisdiction requesting an expedited response due to a large pending retroactive award.
Important:  ROs may not authorize the proposed retroactive award until the hub
  • completes the bottom portion of the memorandum, and
  • uploads the memorandum to the eFolder, and
  • notifies the RO by e-mail that all necessary protection and accounting requirements are in place.
Notes:
  • The proposed retroactive award must remain in pending authorization for the hub’s review and action.
  • Use of the FID-Fiduciary Adjustment claim label allows NWQ to route the EP 290 to the appropriate hub for action.
References:  For more information on

X.ii.6.E.1.h.  RO Actions After a Hub Completes the Review of a Case Involving a Pending Retroactive Award That Exceeds $25,000
Use the table below to determine the actions an RO must take after a hub completes its review of the type of case described in M21-1, Part X, Subpart ii, 6.E.1.g.
If the hub …
Then …
  • concurs with the pending award action, and
  • confirms the necessary protections and accounting requirements are already in place
  • verify that the memorandum referenced in M21-1, Part X, Subpart ii, 6.E.1.i has been
    • uploaded into the eFolder, and
    • signed by the hub, and
  • authorize the pending award.
does not concur with the proposed award action because it determined
  • estate protection is necessary, or
  • the protection in place needs to be increased
  • return the award, and
  • postpone promulgation and authorization of the award until the hub confirms the necessary protections and accounting requirements are in place.
 
Note:  When authorizing an award with retroactive benefits over $25,000, a third signature (concurrence) will be required by the Veterans Service Center Manager or designee no lower than a coach.
Reference:  For more information on awards that require a third signature, see the VBMS Awards User Guide.

X.ii.6.E.1.i.  Memorandum Template to a Hub Requesting Review of a Case Involving a Retroactive Award Between $10,000 and $25,000
The following is a memorandum template that the authorization activity must accurately complete and upload to VBMS for the hub of jurisdiction to review whenever it identifies a beneficiary who is
  • under fiduciary supervision, and
  • entitled to a retroactive award between $10,000 and $25,000.
 This is a sample memorandum to a fiduciary hub requesting review of a case involving a retroactive award between $10,000 and $25,000

X.ii.6.E.1.j.  Sample Memorandum to a Hub Requesting Review of a Case Involving a Pending Retroactive Award That Exceeds $25,000
The following is a sample of the memorandum that the authorization activity must accurately complete and e-mail to the hub of jurisdiction for review and completion whenever it identifies a beneficiary who is
  • under fiduciary supervision, and
  • entitled to a retroactive award that exceeds $25,000.
This is a sample memorandum to a hub requesting review of a case involving a pending retroactive award that exceeds $25,000.

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

Change Date
February 8, 2021

X.ii.6.E.2.a.  Hub Certification Requirement for Court-Appointed Fiduciaries
When a court appoints a guardian for an eligible beneficiary, do not make payments to the guardian until the hub furnishes a VA Form 21P-555.
After receiving court documents indicating the appointment of a fiduciary from anyone other than the hub,
  • review the claims folder and corporate record to determine if a VA-appointed fiduciary is in place
  • upload the court documents to the eFolder, and
  • take action as outlined in the table below.
If a fiduciary …
Then …
exists
  • establish an EP 290, FID-Fiduciary Adjustment, and
  • associate a permanent note within VBMS that notifies the hub to review for
    • recognition of the fiduciary, or
    • appointment of a successor fiduciary, if necessary.
Note:  Use of the FID-Fiduciary Adjustment claim label allows NWQ to route the EP 290 to the hub of jurisdiction.
does not exist
  • complete a VA Form 21-592, and upload a copy of the form into the corresponding eFolder
  • establish an EP 290, FID-Fiduciary Adjustment, and
  • associate a permanent note in VBMS that provides the reason for establishing the EP.
Note:  Use of the FID-Fiduciary Adjustment claim label allows NWQ to route the EP 290 to the hub of jurisdiction.

X.ii.6.E.2.b.  Authorizing an Award for a Certified Fiduciary-Payee
Follow the steps in the table below when a hub furnishes a VA Form 21P-555 to the authorization activity.
Step
Action
1
Prepare the award using the following information as it appears in the fiduciary hub’s certification:
  • name and address of the fiduciary-payee
  • the legend, and
  • the name of the beneficiary.
Examples:  Examples of legends include
  • custodian of, and
  • guardian of.
2
Annotate the award with the following notation: Fiduciary-payee certified by hub.
3
Furnish the certifying hub with documentation of any award made as a result of certification by that hub, including awards in supervised direct payment cases.
 
Note:  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 the following claim types
  • Integrated Disability Evaluation System
  • Restricted Access Claims Center, and
  • foreign residents.

X.ii.6.E.2.c.  References for Special Authorization Procedures
For information on special authorization procedures for a(n)

3.  Controlling Awards for Children

Introduction
This topic contains information on controlling awards for children, including

Change Date
November 1, 2023

X.ii.6.E.3.a.  Authority for Determining Minority Status and the Propriety of Making Direct Payments to Children
Determinations as to a beneficiary’s status as a minor and the propriety of making direct payments to children are governed by

X.ii.6.E.3.b.  Establishing a Diary When Awarding Benefits to a Fiduciary for a Minor
When an award is made to a fiduciary solely because the beneficiary is a minor, (including a fiduciary recognized under 38 U.S.C. 5502), 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.
When the diary expires,
  • obtain the child’s current address
  • prepare an award providing direct payment to the child, under 38 U.S.C. 5502
  • establish an EP 400, FID-Correspondence which will be manually brokered to the hub of jurisdiction by the RO, and
  • e-mail notification of the actions taken to the hub of jurisdiction.
Note:  The establishment of an EP 400, FID-Correspondence is required at the time the diary expires regardless of payment status.
References:  For more information on

X.ii.6.E.3.c.  Age of Majority by State/Territory
Use the table below to determine the age of majority by State or U.S. territory.
State/Territory
Majority Age
State/Territory
Majority Age
Alabama
19
Nebraska
19
Alaska
18
Nevada
18
American Samoa
18
New Hampshire
18
Arizona
18
New Jersey
18
Arkansas
18
New Mexico
18
California
18
New York
18
Colorado
18
North Carolina
18
Connecticut
18
North Dakota
18
Delaware
18
Ohio
18
District of Columbia
18
Oklahoma
18
Florida
18
Oregon
18
Georgia
18
Pennsylvania
18
Guam
18
Philippine Republic
18
Hawaii
18
Puerto Rico
21
Idaho
18
Rhode Island
18
Illinois
18
South Carolina
18
Indiana
18
South Dakota
18
Iowa
18
Tennessee
18
Kansas
18
Texas
18
Kentucky
18
Trust Territory
18
Louisiana
18
Utah
18
Maine
18
Vermont
18
Maryland
18
Virgin Islands
18
Massachusetts
18
Virginia
18
Michigan
18
Washington
18
Minnesota
18
West Virginia
18
Mississippi
21
Wisconsin
18
Missouri
18
Wyoming
18
Montana
18

X.ii.6.E.3.d.  Establishing a Diary When Awarding Benefits to a Fiduciary for a Minor Who Is Mentally Incompetent
When awarding benefits to a fiduciary for a minor whom the rating activity has determined is incapable of self-support due to mental incompetency,
  • do not enter an end date for the award (make it an open-ended award)
  • establish a diary that will expire six months before the date the child reaches the age of majority, and
  • when the diary expires, complete and submit VA Form 21-592 to the hub of jurisdiction.
Note:  When preparing VA Form 21-592
  • furnish detailed information regarding the child’s mental status, and
  • include any information regarding the suitability of a parent to act as the child’s custodian.
Reference:  For more information on establishing a diary when awarding benefits to a fiduciary for a minor, see M21-1, Part X, Subpart ii, 6.E.3.b.

X.ii.6.E.3.e.  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:
  • establish a diary that will expire 60 days before the date the child reaches the age of majority, and
  • when the diary expires,
    • confirm the child has not married and is still attending school
    • take action to provide direct payment to the child, and
    • e-mail notification of the actions taken to the hub of jurisdiction.
Note:  The proper effective date for direct payment is the later of the following dates:
  • the first day of the month during which the child reaches the age of majority, or
  • the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share.

X.ii.6.E.3.f.  Statutory Change in the Age of Majority
Statutory changes in the age of majority make it necessary to authorize direct payment when
  • payments are being made through a fiduciary only because of the minority status of a child or children, and
  • the custodian or child(ren) requests direct payment pursuant to the statutory change.
Note:  Hubs routinely identify beneficiaries under their jurisdiction that are affected by the enactment of a law that lowers the age of majority.

X.ii.6.E.3.g.  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,
  • change the name and address of the payee, and
  • make the change to direct payment effective the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share.
Exception:  If payments are being made through a court-appointed fiduciary, refer the request for direct payment to the hub before making any change.
Reference:  For more information on the actions to take when an age of majority diary expires, see M21-1, Part X, Subpart ii, 6.E.3.b.

X.ii.6.E.3.h.  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 they reach 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.

4.  Authorizing Awards Involving a Custodian Under 38 U.S.C. 5502

Introduction
This topic contains information on authorizing awards involving a custodian, including

Change Date
April 8, 2024

X.ii.6.E.4.a.  When to Authorize an Award Releasing Payment of Funds Under 38 U.S.C. 5502
Per 38 U.S.C. 5502, make payments to a custodian on behalf of a minor child according to the instructions in M21-1, Part X, Subpart ii, 6.E.4.c when the following conditions exist:
  • the custodian to be recognized is the natural or adoptive parent or stepparent of the child
  • the child is in the actual or constructive custody of the parent, and
  • there is no information of record that indicates the parent is unfit.

X.ii.6.E.4.b.  When Not to Release Payment of Funds Under 38 U.S.C. 5502
Do not release payment of funds under 38 U.S.C 5502 when any of the following situations exist:
  • the beneficiary is a child that is not in the custody of their natural or adoptive parent or stepparent
  • a hub has certified a legal custodian or fiduciary
  • a court-appointed guardian and/or fiduciary is either in place or an appointment is pending
  • the beneficiary is a Native American minor in the custody of a bonded officer of a Native American reservation, or
  • a Veteran’s adult child is incapable of self-support by reason of incompetency under 38 U.S.C. 5502.
Follow the steps in the table below if an award of benefits is in order, but one of the situations described in the previous block exists.
Step
Action
1
Generate an award that withholds all retroactive and future funds VA owes the beneficiary.
2
Was a VA Form 21-592 completed and submitted to a hub?
  • If yes, proceed to the next step.
  • If no,
    • complete VA Form 21-592
    • upload a copy of the form into the corresponding eFolder, and
    • go to the next step.
3
Authorize the award.
4
Issue a decision notice to the custodian that filed the claim on behalf of the child.
5
Was an EP 590, Expedited Initial Appointment Field Examination automatically established by the system?
  • If yes, proceed to the next step.
  • If no, establish an EP 290, FID-Fiduciary Adjustment and proceed to the next step.
Note:  Use of the FID-Fiduciary Adjustment claim label allows NWQ to route the EP 290 to the hub of jurisdiction when the EP 590 was not automatically established.
6
Associate a permanent note in VBMS that indicates the hub must update the CHANGE OF FIDUCIARY screen in Share before releasing funds to the beneficiary via award action.
Note:  The hub is responsible for appointing a fiduciary and authorizing the award for EP 290, FID-Fiduciary Adjustment.
Reference:  For more information on hub jurisdiction, see M21-1, Part X, Subpart ii, 6.C.1.d.

X.ii.6.E.4.c.  Authorizing an Award Under 38 U.S.C. 5502
Follow the steps in the table below to authorize an award under 38 U.S.C. 5502 and notify the custodian.
Step
Action
1
  • Generate an award showing the name of the parent as the custodian.
  • Withhold all retroactive benefits payable to the custodian on behalf of the child.
2
Annotate Custodian recognized under 38 U.S.C. 5502 in the OTHER PRINT REMARKS field on the PRINT REMARKS screen in VBMS.
3
Was a VA Form 21-592 completed and submitted to a hub?
  • If yes,
    • prepare a memorandum or letter that alerts the hub of the award action, and
    • upload a copy of the document into the corresponding eFolder.
  • If no,
    • complete a VA Form 21-592, and
    • upload a copy of the form into the corresponding eFolder.
4
Authorize the award.
5
Send the decision notice to the custodian.
6
Was an EP 590, Expedited Initial Appointment Field Examination automatically established by the system?
  • If yes, proceed to the next step.
  • If no, establish an EP 290, FID-Fiduciary Adjustment and proceed to the next step.
Important:  Claims processors may not cancel or change the EP 290 or change the EP’s claim label.  If a claims processor establishes the EP in error, ask the hub of jurisdiction (by e-mail) to cancel it.
Note:  Use of the FID-Fiduciary Adjustment claim label allows NWQ to route the EP 290 to the hub of jurisdiction when the EP 590 was not automatically established.
7
Associate a permanent note in VBMS that indicates the hub must update the CHANGE OF FIDUCIARY screen in Share before releasing retroactive funds to the beneficiary via award action.
Note:  The hub is responsible for
  • appointing a fiduciary
  • authorizing the award for EP 290, FID-Fiduciary Adjustment, and
  • releasing all withheld retroactive benefits.
Reference:  For more information on hub jurisdiction, see M21-1, Part X, Subpart ii, 6.C.1.d.

X.ii.6.E.4.d.  Handling the Certification of a Fiduciary After Authorizing an Award Under 38 U.S.C 5502
In some cases, the custodian recognized by the authorization activity is found unsuitable to act in a fiduciary capacity.  When this occurs, the hub may
  • recommend a suspension of payments to conserve the beneficiary’s funds, and
  • proceed with the appointment of an acceptable fiduciary.
When an award to a custodian has been authorized under 38 U.S.C 5502, and the hub subsequently certifies the same or a different person as fiduciary, make payments to the person certified by the hub.
Note:  If the only action taken is the change or removal of a fiduciary, a notice of proposed adverse action is not required.

X.ii.6.E.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 U.S.C. 5502 ceases to have custody of a child beneficiary, submit VA Form 21-592 to the hub of jurisdiction.
When preparing the form,
  • furnish detailed information as to the status of the child’s custody, and
  • include any information on the suitability of a parent to act as the child’s custodian.

5.  Authorizing Awards Involving a Native American Minor or Incompetent Adult Under 38 CFR 13.100

Introduction
This topic contains information on authorizing awards involving a Native American minor or incompetent adult under 38 CFR 13.100, including

Change Date
June 14, 2019

X.ii.6.E.5.a.  Awards Under 38 CFR 13.100 to a Bonded Officer of the Native American Reservation
Under 38 CFR 13.100, 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 a VA Form 21-592 to the hub for certification of the payee before processing the award.
References:  For more information on requesting the appointment of a fiduciary for a

X.ii.6.E.5.b.  Payee for Awards Authorized Under 38 CFR 13.100
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 13.100.  Enter the following instead:  Bureau of Indian Affairs [name of agency or RO], for [name of Native American beneficiary].