Accounting questions - Pending Fiduciary Approval for Parent

Discussion in 'Fiduciary questions' started by felicia970, May 11, 2016.

  1. felicia970

    felicia970 Newbie

    Good day VetAdmin,

    I apologize in advance, but my short questions go hand in hand with long statements. I'm aware you can only make suggestions based on your experience, so any input I would greatly appreciate and I'd use my common sense / best judgement going forward.

    I am pending fiduciary approval for my parent. My parent has been in a Cal-Vet home and is being very well take care of. Upon a recent meeting with a field examiner (very nice by the way) they did not seem confident in any of their answers to my questions - therefore I am here........

    In reference to the annual accounting (which I know will take place next year - BUT I'd rather be prepared ahead of time).

    Am I correct that these 2 forms are ALWAYS used together?

    > Federal Fiduciary Account (Form # 21P-4706b)

    > Certificate of Balance on Deposit and Authorization to Disclose Financial Records (Form #21-4718a)

    I'm well aware that with each accounting period I will use the Federal Fiduciary Account form and log all monies from ALL sources of income (VA or not) for my parent and also document how much was spent on certain needs (Although it doesn't help me identify as to which source the monies came from). Does this sound correct so far?

    The field agent said it would probably be just be a one time annual accounting to spend down the retro VA pay since the monthly VA pension is relatively small anyway - 1/4 of the home cost.

    On the following thread, you mention that this inquiring person is only responsible to for auditing the VA funds / Fiduciary account

    Am I not expected to keep an itemized detail for Non-VA funds? (Social Security & NON-VA Employment Pension. This would be a relief of a daunting task yet............

    If I'm not expected to keep itemization / receipts from my parent's Non-VA funds in other checking accounts, then what is the purpose to include NON-VA funds on the Certificate of Balance on deposit if that provides the bank statements for the other accounts but without recordkeeping? (Is this simply just to prove the amount on the Federal Fiduciary Accounting Form matches the Certificate of Balance on Deposit Form?

    I am also asking because - I very much regularly purchase my fathers clothing (the home misplaces a lot, and he has incontinence issues resulting in him replacing a lot), senior accessories and hobby items online (which of course requires a debit card of some sort which I would use from the NON-VA account). He occasionally asks for cash here and there (very small amounts like $20 or so) for him to use in the home. Are these regular transactions NOT scrutinized as long as they're from the Non-VA fund account?

    Most importantly - The field representative mentioned that it shouldn't be an issue, yet there was a fund usage agreement I signed that indicates "any deviation must be approved in writing by the fiduciary activity". Does this apply to all funds? VA-only funds? I'm confused.

    YET I've also seen a document online (Google VA FL12-013) that states "Effective immediately, VA-appointed fiduciaries do not need to seek prior VA approval for any single expenditure made on behalf of a beneficiary from the beneficiary's funds, regardless of the amount of the expenditure or whether it is listed on a VA Form 21-4703. This "memo" is dated previous to the fiduciary agreement form - yet its still mentioned within the form.

    I'm a very thorough person, but I also don't want to over-work myself on recordkeeping for the NON-VA accounts if I don't have to. I also don't want to be questioned or surprised later. This seems like a full time job.

    Thank you for your time!
  2. Kaylin

    Kaylin Hero Member Staff Member


    As for the two forms you listed, we do not see these forms on here often and I do believe it would be best to ask any questions regarding the actual accounting of the fiduciary account to the field agent who interviewed you or speak with someone at the VA.

    We are not tax experts and I highly recommend you speak with your tax professional regarding what you should keep track of for auditing purposes. Would I keep an itemized detail of records for non-VA funds? Yes, I would.

    Small transactions like the ones you mentioned are not scrutinized by the VA. They care more about how much you are paying for his care needs and how much income he has coming in each month.

    Again, I see most of these questions being answered by the field agent you spoke with or the VA directly.

    I definitely understand your thorough questions and record keeping. Better that than not caring or keeping any sort of records at all!

Share This Page