Scope of the Fiduciary Review

[FCvet]

Hello-

My mother has been receiving VA benefits since 1980, as the wife of a deceased WW2 vet. Due to illness she has been a ward of the state (in Arizona). I am her son and a court appointed conservator. The court audits and reviews my mother's income and expenses yearly.

Mom and I are meeting with a VA representative at the nursing home to discuss my appointment as her representative (i.e., fiduciary).  I'm already the court ordered fiduciary but that doesn't seem to matter to VA!  MY CONCERN is this VA rep is asking about income, expenses, assets and also wants my mom's last tax return. SO WHY do they need this information to make a fiduciary appointment? As noted, my mother has been receiving benefits for many years. Can this VA person (fiduciary process) be a way for the VA to reduce or eliminate my mother's current monthly benefit?

P.S. I wish I had come to this site much earlier, it has been quite an adventure dealing with all the tentacles of the VA.

[KarenO]

When I met with the fiduciary, I basically asked him the same question.  Why were we going through all her financials again when the VA already had everything with the application.  He indicated it was more to make sure that I knew what her finances were so I could handle her money appropriately or something to that effect.  He was very helpful to make sure that we were putting down all expenses we were entitled to. 

[vetadmin]

Good reply Karen.  Thanks for sharing your experience.

No folks, the VA does not make this easy.

[FCvet]

Thank you for your response, our family really appreciates this help. That said, I’m not sure your response really answers (quells) my concern about the VA and whether they can reduce or eliminate my mother’s benefit as a by-product of the fiduciary review/appointment process.  For example, does the VA apply some kind of “means test” and what are the parameters for income, expenses and assets? 

By way of background, our mom has been receiving VA benefits for about 30 years as the widow of a veteran who was KIA.  She is 91, has severe dementia and is wheel-chair bound after breaking her pelvis.  About two years ago we had to move her from a larger care facility to a smaller private care home because the monthly cost became prohibitive and her assets would have been used up after a short time. 
Our mom has current financial assets of about $84,000 and her monthly income covers the monthly expenses with about $200-$400 left over each month. However, if our mom’s condition deteriorates anymore she will be facing much higher cost, and our ability to maintain a good and reasonable level of care may be jeopardized, particularly if she were to loose her VA benefit of about $1,154 per month.

Again, I need to know if the scope of the fiduciary process allows the VA to re-evaluate a benefit?  HAS THIS HAPPENED TO ANYONE?  As I noted before, VA is asking for a lot of financial information (income/expenses, bank statements, tax returns, etc.).  What may the VA do if my mother’s financial situation (which is much different today than 30 years ago when she originally applied) exceeds VA parameters, can they eliminate her benefit? 

But that is not the worst case scenario, what happens if the VA claims my mom was over-paid in benefits over the years and goes after her income (she has a federal annuity) and/or assets to satisfy a so-called debt?  Don’t think it can’t happen!  Perhaps I am just overly concerned, but I sure don’t want to be blind-sided going into this fiduciary appointment process.

Thank you!

[vetadmin]

I think the point that needs clarification here is, what "benefit" has your mom been receiving all these years that would not be based on a financial means test?  Based on the informtion you provided it does not appear that this would have been the Aid and attendance Pension.

Rather than speculating, please clarify the source of the VA money she receives.

Thanks.

[FCvet]

My mother filed about 1980. I could not find a copy of the original application and wrote VA for a copy, but never got it.  When mom applied for VA benefits, she was assisted by an Army Captain (lawyer I think) who helped her with the paperwork. I was in school at the time. As I understand it, her benefit comes from being the wife of a veteran who was killed in action during war. Would this be a survivor benefit, as it doesn't appear to be A&A related? Is there a means test for an A&A claim and what about in the case of my mom's type of claim?

As I think about it, the VA has never routinely requested financial information from my mother in all the years she has received benefits, except perhaps for the original application. Hope this helps clarify.

[vetadmin]

There seems to be some confusion here, since it does not appear that she has filed for A&A, so don't believe that the appointment with the Fiduciary is based on this pension.  Depending on how much she receives from the survivor's benefit, I don't know which of the two would pay her more.

I would suggest calling the VA and asking why this appointment has been requested if she is only receiving survivor benefit.

There have been a lot of issues of late with those acting in the capactiy of fiduciary not acting on the best interest of the vet or widow, and have used the funds for other than intended.  This may nothing more than a random audit due to how long she has been receiving benefits, as none of this sounds like the fiduciary process for the A&A pension.

[FCvet]

My mother got ill about seven years ago and became a protected person (ward of the State) and I was appointed conservator.  All income and expenses (financial information) are audited annually by the court.  Her monthly VA payment has gone to the same bank account since she applied for benefits in 1980. She lived in the same residence for many years and I never sought to become her “representative payee” until recently.  This is the reason for the VA fiduciary review, which is to appoint a representative payee (fiduciary), hopefully myself.

Last year my mother’s condition worsened and we moved her to another care home.  It was about this time I sought to become her representative payee. But before I could do so the VA needed to determine if my mom was incompetent. So we went through a VA process to allow them to declare mom incompetent. I sent VA letters from her doctors and other evidence, and we made a trip to the VA doctor. After the VA declared mom incompetent, the next step was a fiduciary review, which is where we are now. 

Based on all the great feedback, I am convinced my mother’s VA benefit is not A&A based and not subject to “means testing”.  After some more late night browsing and research about federal benefits, I now know my mother’s VA benefit derives from the Dependency and Indemnity Compensation (or DIC award).  And I don't believe a DIC award is subject to re-evaluation. DIC is automatic if a vet is killed on active duty and in-the-line of duty (LOD). 

My concern is alleviated.  As KarenO posted, the fiduciary review “is more to make sure I knew what her finances were so I could handle her money appropriately”.   I think this is the situation in our case!  Wish I had done more research before posting so I could have made this easier for you guys.   

THANK YOU!

P.S. The following information was obtained at: http://myarmybenefits.us.army.mil/Home/Benefit_Library/Federal_Benefits_Page/Survivor_Benefit_Plan_%28SBP%29.html?serv=147

“The spouse and minor children of Soldiers who die in the line of duty (service-connected death) are entitled to tax-free compensation paid by the Department of Veterans Affairs. The benefit is called Dependency and Indemnity Compensation (DIC).“  “The spousal DIC amount is $1,154, effective December 1, 2008.”   

Note: The amount $1,154 is exactly what my mom receives, and the benefit has never been taxed.

[vetadmin]

Well, I do believe that you have arrived at the correct conclusion on this, and glad that you are feeling better about the situation.

Since the VA does not recognize POA or DPOA, they do have a process regardless of the pension or benefit, and this sounds completely in-line with all that.

Trust all goes well.