what happens to the money in the fiduciary account when the person dies?

Discussion in 'Fiduciary questions' started by ladybug98_2002, Jul 15, 2014.

  1. This site has made a hard situation a little easier. Thank you for that. I recently just met with a field examiner regarding appointing me as my mom’s fiduciary last week. My mom receives over $3000/month for a service related disability and she resides in a VA nursing home receiving hospice care. My mom has $30,000 in retro pay coming to her as well. Since the VA provides her care and she doesn’t pay for a nursing home, when she passes, will the VA want her money back? The field agent made it sound like the VA would want all of her unspent VA money, especially what was left of the retro money.
     
  2. vetadmin

    vetadmin Administrator Staff Member

    Yes, the VA will take the unspent money back, sorry to say.
     
  3. MiataDriver

    MiataDriver Newbie

    That seems so wrong as it is RETRO pay! She earned that money! So far we haven't had to deal with that, I have a feeling my Mom will be living until all her money is spent and then we will be in the hole! Guess that's good and bad! ;)
     
  4. vetadmin

    vetadmin Administrator Staff Member

    Keep receipts and records of anything you personally pay associated with her care. You or another family member who is paying anything can file against her accrued amount for reimbursement.

    As a suggestion, when she does get the retro, spend it on pre-funeral arrangement, any modifications she made need for her care.
     
  5. Thank you so much for your quick response! Does that mean that they will take everything or just the benefit check for the month she died in and the unspent retro money? In the material they gave me to read, it states this:
    “The beneficiary is not entitled to VA benefits for the month in which he/she dies, even if the individual dies on the last day of the month. Therefore, unless you are the beneficiary’s spouse, you must return these funds immediately to VA. Any saved VA benefits belong to the beneficiary’s estate and must generally be given to the legal representative of the beneficiary’s estate. You may contact the probate court or an attorney for further information. If the beneficiary dies without a will or heirs, you must return any remaining VA funds to VA. You may contact your fiduciary hub of jurisdiction for further information.”

    Thank you for the idea about using the retro check for pre-burial expenses—I’m going to be looking into that.
     
  6. vetadmin

    vetadmin Administrator Staff Member

    That is true about the date of death, which is just another one of the VA's stupid rules.

    They will ask for everything back that cannot be shown as an approved expense for her care or final arrangements.
     

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