Single Veteran

[lori]

I am the Federal Fiduciary for my brother's VA Benefits. He is wondering if he should pass away, the money in his checking will it go back to the government or be left in his estate. He does not currently have a savings account, but if this keeps it in his estate he will plan on starting one. He has never been married and both of his parents are living.

Thanks

[Chuck75]

I believe the money would go to his estate. There is no reason it should go back to the government, as it's his. The only portion that could be seized is any that was ordered paid to him and he didn't survive to be authorized to receive. Payments go out shortly before the first of the month and if he passes between then and the first they can and will seize that payment from his account. I suggest he get a "living revokable trust," which he can find at suzeorman.com for free. This way he or his trustee control his assets and when he passes, the trustee takes over and does whatever he wanted done. I believe it expedites the process, without waiting for probate and protects his assets, from taxes, etc. jmo

pr

$29.95 is not free!

[carlie]

$29.95 is not free!

Suze Orman: FREE Downloadable Will & Trust Kit

http://dealseekingmom.com/suze-orman-free-downloadable-will-trust-kit/

[boomer2]

Carlie and Lori

Here is a link to M21-1MR, section III, you will have to scroll down and find the subpart, chapter and section

http://www.benefits.va.gov/WARMS/M21_1MR3.asp

Hope this helps, there are other parts of M21 that pertain to fidicuaries.

[lori]

Found the answer to my question...thanks everyone...

§13.110 Escheat; post fund.

(a) Escheat; 38 U.S.C. 5502(e). Upon death of a beneficiary for whom payment of Department of Veterans Affairs benefits was made to a court-appointed fiduciary, legal custodian, custodian-in-fact, or by institutional award, the fiduciary (or the deceased beneficiary’s personal representative) shall, upon request, account for and return to the Department of Veterans Affairs any remaining assets derived from Department of Veterans Affairs benefits which would under State law escheat to the State, less legal expenses of any administration necessary to determine that an escheat is in order.

(b) General Post Fund; 38 U.S.C. 8520(a). Upon the death of a veteran intestate while a member or patient in any facility while being furnished care or treatment therein by the Department of Veterans Affairs, who is not survived by a spouse, next of kin, or heirs entitled under the laws of the veteran’s domicile, the veteran’s fiduciary, if any, or the veteran’s personal representative shall account for and turn over to the Department of Veterans Affairs all personal property, including money and chooses in action owned by the veteran at the time of his or her death. (See also §14.514© of this chapter.)

© Refusal of fiduciary or personal representative to cooperate. If the fiduciary or personal representative, if any, refuses to voluntarily comply with the provisions of paragraph (a) or (b) of this section, the Veterans Services Officer will submit a complete report to the Regional Counsel.

[carlie]

I'd see about being listed as Payable Upon Death (POD) for your brother's bank account's.

Hopefully other's will chime in some more.

This is a very interesting topic and I think this could be hashed out alot more here.

[lori]

I don't know if anyone has the same type of situation I have.....if so hopefully this will help them in the future...or shed a little light on this situation....I am going to take Carlie's advice and check on the POD....Federal Fiduciary doesn't state it cannot be done...lol

Yes my brother is 100% disabled for PTSD. Yes they have him also listed as incompetent. He is afraid if anything every happens to him that his money in his VA checking and savings will go back to the government. He is wanting to figure out a way that they cannot take his money. Unfortunately, his savings is listed as his name by my name Legal Custodian. His checking is his name by my name Federal Fiduciary. I have to keep all receipts and send in yearly accounting and it has to match up penny for penny. I also have to get permission to purchase anything over $500.00 for him. He does already have a Will drawn up by a lawyer. If his money goes back to the government he wants to keep it spent. The Field Examiner made a list of things that he could purchase when he received his retro pay and then stated he could have $400.00 a month cash for whatever he wanted to do with. He also stated to keep at least one months pay in a savings account. It also stated on the Fiduciary agreement that after his needs are met monthly that the remaining monies be put in a interest bearing savings account. If it gets to be over $10000.00 He has to purchase a Surety Bond which basically keeps me insured from spending his money incorrectly. There is so much red tape it stinks because he shouldn't be told how to spend it by the government. He was in the Vietnam War and protected the country but now he is still controlled by them....