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Department of Veterans Affairs M21-1, Part III, Subpart v Veterans Benefits Administration May 16, 2018 Washington, DC 20420 Key Changes Changes Included in This Revision The table below describes the changes included in this revision of Veterans Benefits Manual M21-1, Part III, “General Claims Process,” Subpart v, “General Authorization Issues and Claimant Notification.” Notes: The term “regional office” (RO) also includes pension management center (PMC) and Appeals Resource Center (ARC), where appropriate. Unless otherwise noted, the term “claims folder” refers to the official, numbered, Department of Veterans Affairs (VA) repository – whether paper or electronic – for all documentation relating to claims that a Veteran and/or his/her survivors file with VA. Minor editorial changes have also been made to - improve clarity and readability - update incorrect references - update obsolete terminology, where appropriate - update the labels of individual blocks to more accurately reflect their content, and - bring the document into conformance with M21-1 standards. Reason(s) for Change Citation To explicitly state, rather than imply, that claims processors may change the name of a fiduciary, guardian, or legal custodian without prior approval from the fiduciary hub under the circumstances described in the second row of the table. M21-1, Part III, Subpart v, Chapter 9, Section C, Topic 1, Block e (III.v.9.C.

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Department of Veterans Affairs M21-1, Part III, Subpart vVeterans Benefits Administration May 16, 2018 Washington, DC 20420

Key Changes

Changes Included in This Revision

The table below describes the changes included in this revision of Veterans Benefits Manual M21-1, Part III, “General Claims Process,” Subpart v, “General Authorization Issues and Claimant Notification.”

Notes: The term “regional office” (RO) also includes pension management center

(PMC) and Appeals Resource Center (ARC), where appropriate. Unless otherwise noted, the term “claims folder” refers to the official,

numbered, Department of Veterans Affairs (VA) repository – whether paper or electronic – for all documentation relating to claims that a Veteran and/or his/her survivors file with VA.

Minor editorial changes have also been made to- improve clarity and readability- update incorrect references- update obsolete terminology, where appropriate- update the labels of individual blocks to more accurately reflect their

content, and- bring the document into conformance with M21-1 standards.

Reason(s) for Change CitationTo explicitly state, rather than imply, that claims processors may change the name of a fiduciary, guardian, or legal custodian without prior approval from the fiduciary hub under the circumstances described in the second row of the table.

M21-1, Part III, Subpart v, Chapter 9, Section C, Topic 1, Block e (III.v.9.C.1.e)

To make minor edits for the purpose of improving clarity and readability. III.v.9.C.1.fTo delete the phrases “within five days” and “within 30 days,” when necessary, as outlining timeliness standards falls under the direction and purview of the Office of Field Operations (OFO).  Per Compensation Service leadership, such language has been removed from M21-1 where its inclusion does not meaningfully impact the procedures described.

III.v.9.C.1.g

To delete the word “expeditiously,” when necessary, as outlining timeliness standards falls under the direction and purview of OFO.  Per Compensation Service leadership, such language has been removed from M21-1 where its inclusion does not meaningfully impact the procedures described.

To delete as inaccurate the statement indicating that the fiduciary hub “returns the draft award.”

III.v.9.C.1.h

To delete the phrase “within five days,” when necessary, as outlining timeliness standards falls under the direction and purview of OFO.  Per Compensation Service leadership, such language has been removed from

III.v.9.C.1.i

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M21-1 where its inclusion does not meaningfully impact the procedures described.

To delete verbiage that is either redundant or adds no value.To make minor edits for the purpose of improving clarity and readability. III.v.9.C.1.jTo make minor edits for the purpose of improving clarity and readability. III.v.9.C.2.a and

b To delete the word “timely,” when necessary, as outlining timeliness

standards falls under the direction and purview of OFO.  Per Compensation Service leadership, such language has been removed from M21-1 where its inclusion does not meaningfully impact the procedures described.

To instruct claims processors to set the diary to expire three months before the date the child reaches the age of majority.

III.v.9.C.3.b

To delete text that is irrelevant and potentially confusing to the reader. To make minor edits for the purpose of improving clarity and readability.

III.v.9.C.3.d

To make minor edits for the purpose of improving clarity and readability. III.v.9.C.3.e To replace “the first of the month following the month for which VA last

paid the beneficiary” with “the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share” because the latter is less confusing to the reader.

To make minor edits for the purpose of improving clarity and readability.

III.v.9.C.3.f

To make minor edits for the purpose of improving clarity and readability. III.v.9.C.3.g To replace “the first of the month following the month for which VA last

paid the beneficiary” with “the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share” because the latter is less confusing to the reader.

To clarify that the “name and address” is the name and address of the payee.

III.v.9.C.3.h

To replace the phrase “when a child receives a payment of benefits” with the phrase “when awarding benefits to a child” for the purpose of improving the clarity of the instructions.

To clarify that claims processors must pay retroactive benefits to a child who has reached the age of majority, even if the benefits cover a period of time during which the child was a minor.

III.v.9.C.3.i

To replace, for clarity, “VA Form 21-529 action” with “completion and submission of VA Form 21-592 to the fiduciary hub of jurisdiction.”

III.v.9.C.4.b

To make minor edits for the purpose of improving clarity and readability. III.v.9.C.4.d and e

To rewrite for the purpose of improving clarity and readability. III.v.9.C.5.b

Authority By Direction of the Under Secretary for Benefits

Signature

Beth Murphy, DirectorCompensation Service

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Distribution LOCAL REPRODUCTION AUTHORIZED

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Section C. Authorizing Awards for Fiduciary Cases

Overview

In This Section This section contains the following topics:

Topic Topic Name1 General Authorization Issues in Fiduciary Cases2 Authorizing Awards Involving a Fiduciary for a Minor or

Incompetent Adult3 Controlling Awards for Children4 Authorizing Awards Involving a Custodian Under 38 CFR

3.850(c)5 Authorizing Awards Involving a Native American Minor or

Incompetent Adult Under 38 CFR 13.62

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1. General Authorization Issues in Fiduciary Cases

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

outdated fiduciary appointments and certifications making processing awards to joint guardians handling the appointment of multiple guardians handling irregularitiesy of in the names on guardianship papers and awards handling a name changes to in the name of a beneficiary, guardian, or

fiduciary notifying the a fiduciary hub of changes and additional information

regarding a beneficiary and/or fiduciary handling retroactive awards of less than $25,000 to beneficiaries under

fiduciary supervision handling retroactive awards of $25,000 or greater more to beneficiaries

under fiduciary supervision regional office (RO) actions to take upon after a fiduciary hub completes its

review of a case involving a pending retroactive awards of $25,000 or moregreater to beneficiaries under fiduciary supervision, and

sample memorandum to the a fiduciary hub for administrativerequesting review for retroactive release of benefits of a case involving a pending retroactive award of $25,000 or more.

Change Date July 23, 2015May 16, 2018

a. Outdated Fiduciary Appointments and Certifications

Do not make process an award to a guardian or other fiduciary

based on a fiduciary hub appointment or certification that is more than one year old, and

to whom no payment has been made for one year.

In order to make an award in this caseBefore the authorization activity may process an award under these circumstances, the fiduciary hub must provide either Department of Veterans Affairs (VA) Form 21-555, Certificate of Legal Capacity to Receive and Disburse Benefits, or other notice showing that the appointment or certification remains in full force and effect.

If necessary, request a current VA Form 21-555 by preparing a memorandum to the fiduciary hub, furnishing all of the pertinent information as described in M21-1, Part III, Subpart v, 9.A.1.c.

b. Making Processing Awards to Joint Guardians

In cases of joint guardianship, make all awards payable to the guardians as joint payees as shown on the fiduciary hub’s certification.

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c. Handling the Appointment of Multiple Guardians

If it appears that more than one guardian has been appointed, refer this information to the fiduciary hub. The fiduciary hub will advise which guardian to pay.

d. Handling Irregularitiesy of in the Names on Guardianship Papers and Awards

The names of guardians and wards should be identical on guardianship papers and awards.

Make theProcess an award in the name as shown on the fiduciary hub’s certification if

the name of the ward as it appears on the letters of guardianship or the fiduciary hub’s certification is not the same as that under which the claim was filed, and

there is no question of identity.

e. Handling a Name Changes toin the Name of a Beneficiary, Guardian, or Fiduciary

Follow the requirements inUse the table below to determine the proper action to take upon receipt of notice of awhen handling changes to in the name of a beneficiary, guardian, or fiduciary.

If the individual is ... Then ... a beneficiary with a name changed

his/her name, and payments are being made under

letters of guardianship

make the change of name without prior approval from the fiduciary hub, and

e-mail a copydocumentation of the transaction to the fiduciary hub.

a guardian’s or legal custodian’s name changed because, subsequent to appointment, he/she that has- married/remarried, or- is divorced subsequent to

appointment, or a minor change or correction of the

name (not identity) of any fiduciary, other than a court-appointed fiduciary, with a minor change or correction in name (not identity)is necessary

accept a statement setting forth a the new name without the need for further evidence, per 38 CFR 3.856

make the change of name without prior approval from the fiduciary hub, and

e-mail a copydocumentation of the transaction to the fiduciary hub.

a fiduciary certified by the fiduciary hub with a changes his/her of name/identity

make a change of the fiduciary’s name/identity only at the request of the fiduciary hub.

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f. Notifying the a Fiduciary Hub of Changes and Additional Information Regarding a Beneficiary and/or Fiduciary

Follow the guidelines inUse the table below to determine how towhat to provide to a fiduciary hub when notifying the fiduciary hub of various types of changes or additional information regarding a beneficiary and/or fiduciary.

If the type of change or information is involves ...

Then ...

an awards, or pending requests for

appointment of a fiduciaryies

furnish to the fiduciary hub

a copy of all relevant correspondence, or

documentation of authorization actions.

permanent transfer of the claims folder

send a copy of VA Form 70-7216a, Request for and/or Notice of Transfer of Veterans Records, to the fiduciary hub having of jurisdiction of the fiduciary.

information about the fiduciary indicating that he/shea fiduciary’s

loss ofno longer has actual or constructive custody of the beneficiary, or

is deemed unsuitabilitye or unfitness to act in a fiduciary capacity

notify the fiduciary hub of all of the facts, including a statement that payments have been suspended, if such action has been taken.

Note: Notification to theCorrespond with fiduciary hubs is sent via e-mail.

Reference: To determine the fiduciary hub of jurisdiction, see M21-1, Part III, Subpart v, 9.A.1.ed.

g. Handling Retroactive Awards of Less Than $25,000 to Beneficiaries Under Fiduciary Supervision

When a retroactive award to a beneficiary under fiduciary supervision amounts to less than $25,000

promulgate and authorize the award send the decision notice to the custodian/guardian ensure the decision notice and award are uploaded into the Veterans Benefit

Management System (VBMS), and notify the fiduciary hub of jurisdiction by e-mail of the action taken within

five days of authorizing the award.

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Note: The fiduciary hub must reviews the award within 30 days of receipt to determine any effect the awardit may have on the beneficiary or fiduciary arrangement.

Reference: For contact information about contacting a fiduciary hub and fiduciary hub jurisdiction for the fiduciary hubs, see M21-1, Part III, Subpart v, 9.A.1.ed.

h. Handling Retroactive Awards of $25,000 or Greater More to Beneficiaries Under Fiduciary Supervision

When an regional office’s (RO’s) authorization activity identifies a proposed retroactive award to a beneficiary under fiduciary supervision that amounts to greater than $25,000 or more, the RO authorization activity must e-mail a memorandum to the fiduciary hub of jurisdiction for review to ensure all necessary protection and accounting requirements are in place prior to authorization of the award.

Important: These cases must be handled expeditiously since they are retroactive benefits because ROs are may not to authorize the proposed award until the fiduciary hub completes the pre-promulgation review, and returns the draft award with a completed memorandum stating that all

necessary protection and accounting requirements are in place.

Note: The proposed award shall remain in a “generated” status to control for the pending fiduciary hub review and action.

References: For For a sample of the memorandum to be sent to the fiduciary hubreferenced

in this block, see M21-1, Part III, Subpart v, 9.C.1.j, and. For information about contacting information for the a fiduciary hubs, see

M21-1, Part III, Subpart v, 9.A.1.ed.

i. RO Actions to Take Upon After a Fiduciary Hub Completes Its Review of a Case Involving a Pending Retroactive Awards of $25,000 or Greater More to Beneficiaries Under Fiduciary Supervision

The fiduciary hub must conduct a review based on the proposed award with a retroactive of over $25,000 with five days to determine if the necessary protections and accounting requirements are in place. Use the table below to determine the necessary actions based on the fiduciary reviewthe actions an RO must take after a fiduciary hub completes its review of the type of case described in M21-1, Part III, Subpart v, 9.C.1.h.

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If the fiduciary hub ... Then ... the fiduciary hub completes the pre-

promulgation review, andconcurs with the pending award action, and

confirms the necessary protections and accounting requirements are already in place

the fiduciary hub will return the draft award with a completed memorandum that states all necessary protections and accounting requirements are in place, andthe RO can authorize the pending award.

upon review of the pending award the fiduciary hub does not concur with the proposed award action because it determineds

estate protection is necessary, or the protection in place needs to be

increased

the authorization activity at the RO will be notified within five days to return the award from the “generated” status, and

postpone generation and authorization of the award until once the fiduciary hub has confirms the necessary protections and accounting requirements are in place a completed memorandum will be sent to the RO, and

upon receipt of the completed memorandum/notification from the fiduciary hub the RO can authorize the pending award.

Note: When authorizing an award with retroactive benefits over $25, 000, a third signature (concurrence) will be required by the Veteran Service Center Manager (VSCM) or designee no lower than a cCoach.

Reference: For more information about awards that require a third signature (concurrence), see the VBMS-Awards User Guide , or V eterans Service Network (V ETSNET ) Awards User Guide .

j. Sample Memorandum to the a Fiduciary Hub for Requesting Administrative Review for Retroactive Release of Benefits of a Case Involving a Pending Retroactive Award of $25,000 or

The following is a sample of the memorandum that the authorization activity must be accurately completed and e-mailed by the authorization activity to the fiduciary hub of jurisdiction for review and completion whenever it identifies a beneficiary who is

under fiduciary supervision, and for theentitled to a retroactive release award of benefits of $25,000 or more.

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More

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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

fiduciary hub certification requirement for court-appointed fiduciaries documents

authorizing an award for a certified fiduciary-payee, and references for special fiduciary authorization procedures.

Change Date June 30, 2016May 16, 2018

a. Fiduciary Hub Certification Requirement for Court-Appointed Fiduciaries Documents

When a court appoints a fiduciary for a minor or incompetent claimant, do not award make payments to the fiduciary until the fiduciary hub furnishes VA Form 21-555.

If the authorization activity receivesAfter receiving court documents indicating the appointment of a fiduciary from anyone other than the fiduciary hub, indicating the appointment of a fiduciary,

review the claims folder and corporate record to determine if a fiduciary exists, and

take action as outlined in the table below.

If a fiduciary … Then …exists e-mail notification of the receipt of the court

documents to the fiduciary hub of jurisdiction for review and

recognition of the fiduciary, or appointment of a successor fiduciary, if necessary.

does not exist attach the court documents to a completed VA Form 21-592, Request for Appointment of Fiduciary, Custodian or Guardian, and

e-mail the form to the fiduciary hub of jurisdiction for

- recognition of the fiduciary, or- appointment of a fiduciary, if necessary

b. Authorizing an Award for a Certified Fiduciary-Payee

Follow the steps in the table below when the a fiduciary hub furnishes VA Form 21-555 to the authorization activity.

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Step Action1 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 fiduciary hub.”

3 Furnish the certifying fiduciary hub with a copydocumentation of any award made as a result of certification by that fiduciary hub, including awards in supervised direct payment (SDP) cases.

Note: The fFiduciary hubs in most cases will be responsible fortypically authorizeing an awards for a certified fiduciary-payees, but there are exceptions when the Regional Offices (circumstances under which ROs) will have tomust authorize these awards., to include

Example: ROs must authorize awards associated with Integrated Disability Evaluation System (IDES) claims Restricted Access Claims Center (RACC) claims claims with attorney fee agreements, and foreign claims from foreign residents.

c. References for Special Fiduciary Authorization Procedures

For information on special authorization procedures for a(n)

custodian recognized under 38 CFR 3.850(c), see M21-1, Part III, Subpart v, 9.C.4.c, or

institutionalized Veteran’s award, see M21-1, Part III, Subpart v, Chapter 6.E.2.

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3. Controlling Awards for Children

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

authority for governing determining minority status and the propriety of making direct payments of awards to children

establishing a diary for when awardsing benefits to a fiduciary for a minors age of majority by state/territory establishing a diary in anwhen awarding benefits to a fiduciary for a

- mentally incompetent minorchild- establishing a diary in an award for a physically incapacitated minor child,

and- establishing a diary in an award for a minorchild who is attending school

statutory change in the age of majority authorizing a direct payment due to a statutory change in the age of

majority, and retroactive benefits in an award to a child who has reached the agemade

after the attainment of majority.

Change Date July 23, 2015May 16, 2018

a. Authority for Governing Determining Minority Status and the Propriety of Making Direct Payments of Awards to Children

Determinations as to minority status and the propriety of making direct payments in awards to children are governed by

State law as to the age of attainment of majority, and 38 CFR 3.850 .

b. Establishing a Diary forWhen Awardsing Benefits to a Fiduciary for a Minors

When an award is made to through a fiduciary during for a minorchild’s minority, establish a diary under diary code 20, Helpless Child Reaches Majority, for timely actionthat will expire three months before the date the child reaches the ageof attainment of majority, so as to allow sufficient time to determine the appropriateness propriety of making direct payments to the child.

References: For more Iinformation about the age of majority is listed in the table at M21-1, Part III, Subpart v,

9.C.3.c, and establishing a diary control is included in the Share User Guide.

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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 AgeAlabama 19 Nebraska 19Alaska 18 Nevada 18American Samoa 18 New Hampshire 18Arizona 18 New Jersey 18Arkansas 18 New Mexico 18California 18 New York 18Colorado 18 North Carolina 18Connecticut 18 North Dakota 18Delaware 18 Ohio 18District of Columbia 18 Oklahoma 18Florida 18 Oregon 18Georgia 18 Pennsylvania 18Guam 18 Philippine Republic 21Hawaii 18 Puerto Rico 21Idaho 18 Rhode Island 18Illinois 18 South Carolina 18Indiana 18 South Dakota 18Iowa 18 Tennessee 18Kansas 18 Texas 18Kentucky 18 Trust Territory 18Louisiana 18 Utah 18Maine 18 Vermont 18Maryland 18 Virgin Islands 18Massachusetts 18 Virginia 18Michigan 18 Washington 18Minnesota 18 West Virginia 18Mississippi 18 Wisconsin 18Missouri 18 Wyoming 18Montana 18

d. Establishing a Diary in Whenan Awarding Benefits to a Fiduciary for a Mentally Incompetent ChildMinor

When an awarding benefits is made to a fiduciary for a minor child whom the rating activity has determined is has been rated incapable of self-support before the age of 18 due to mental incompetency,

do not enter an end date for the award (prepare the award asmake it an open-ended award)

set establish a diary to review the casethat will expire six months before the date of attainment of the child’s reaches the age of majority, and

when the diary maturesexpires, send the fiduciary hub a request for the appointment of a fiduciary for the child as a mentally incompetent adult.

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e. Establishing a Diary in anWhen Awarding Benefits to a Fiduciary for a Physically Incapacitated ChildMinor

When an awarding benefits is being made to a fiduciary, (including one recognized under 38 CFR 3.850(c) ) , for a physically incapacitated child, only because the child is a by reason of minority,

set establish a diary to review the casethat will expire three months before the date of attainment of the child's reaches the age of majority, and

when the diary maturesexpires,- obtain the child’s current address- prepare an award providing direct payment to the child, per 38 CFR 3.854,

and- e-mail notification of the actions taken to the fiduciary hub of jurisdiction.

f. Establishing a Diary in anWhen Awarding Benefits to a Fiduciary for a Child Minor Who Is Attending School

When an awarding benefits for a child is being made to a fiduciary or a parental custodian (only because the child is a minor), take the following actions if thefor a child is over age 18 and attending school: by reason of minority only

set establish a diary to review the casethat will expire not less than 60 days before the date of attainment of the child’s reaches the age of majority, and

when the diary maturesexpires,- ascertain marital status and verification of continued schoolingconfirm 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 fiduciary hub of jurisdiction.

Note: Make tThe proper effective date for direct payment award as ofis 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 Sharefirst of the month following the month for which VA last paid the beneficiary.

g. Statutory Change in the Age of Majority

Statutory changes in the age of majority make it necessary to authorize a direct payment when the

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 a the statutory change in age of attainment of majority.

Note: The fFiduciary hubs activity routinely identifyies beneficiaries under their jurisdiction that are affected if there isby the enactment of a law that lowersing the age of majority for accounts under the fiduciary hub’s jurisdiction.

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h. Authorizing a 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 as ofeffective the date in the LAST

PAID DATE field on the AWARD INFORMATION tab in Sharefirst of the month following the month for which VA last paid the beneficiary.

Exception: If payments are being made through a court-appointed fiduciary, refer the requests for direct payment to the fiduciary hub before effecting making any change.

i. Retroactive Benefits in an Award to a ChildMade After Who Has Reached the Attainment Age of Majority

Per 38 CFR 3.403(a)(2), when awarding benefits to a child receives a payment of benefits on or after attainment the date he/she reaches the age of majority, include in the award any retroactive benefits owed to the childbenefits for any retroactive period in the award, even if the benefits are for a period of time during which the child was a minor.

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4. Authorizing Awards Involving a Custodian Under 38 CFR 3.850(c)

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

including

when to authorize an award under 38 CFR 3.850(c) when not to authorize an award under 38 CFR 3.850(c) authorizing an award under 38 CFR 3.850(c) and notifying the custodian handling the certification of a fiduciary after authorizing an award under 38

CFR 3.850(c), and handling a custodian under 38 CFR 3.850(c) without custody of the

Veteran’s childrenactions to take when a custodian ceases to have custody of a child beneficiary.

Change Date July 23, 2015May 16, 2018

a. When to Authorize an Award Under 38 CFR 3.850(c)

Per 38 CFR 3.850(c), make payments to a custodian on behalf of a minor child without prior submission to, or certification by, the a fiduciary hub 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.

Note: If the custodian to be recognized is the natural or adoptive parent or stepparent, establish that a legal relationship exists.

b. When Not to Authorize an Award Under 38 CFR 3.850(c)

Do not authorize an award under 38 CFR 3.850(c) when any of the following situations below exist.:

The A fiduciary hub has certified a legal custodian or fiduciary. A court-appointed fiduciary is either in effect place or an appointment is

pending. Completion and submission of VA Form 21-592 action to the fiduciary hub

of jurisdiction is required- by virtue of the child’s entitlement to VA insurance benefits., or- VA Form 21-592 is required by reason of incompetency of an adult child

who is incapable of self-support.

c. Authorizing an Award

Follow the steps in the table below to authorize an award under 38 CFR 3.850(c) and notify the custodian.

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Under 38 CFR 3.850(c) and Notifying the Custodian

Important: Make no award under 38 CFR 3.850(c) for an incompetent adult child who is incapable of self-support. Instead, request the appointment or certification of a fiduciary, per M21-1, Part III, Subpart v, 9.A.1.a.

Step Action

1 Prepare the award showing the name of the parent as the custodian.

2 Annotate the award print with the following notation: “Custodian recognized under 38 CFR 3.850(c).”

3 Send the award notification letterdecision notice to the custodian.

d. Handling the Certification of a Fiduciary After Authorizing an Award Under 38 CFR 3.850(c)

In some cases, the custodian recognized by the authorization activity is found unsuitable to act in a fiduciary capacity, and. When this occurs, the fiduciary hub may

recommend a suspension of payments to conserve the beneficiary’s funds, and

proceed with the appointment of an acceptable fiduciary.

In such cases, wWhen an award has been made to a custodian has been authorized under 38 CFR 3.850(c), and the fiduciary hub subsequently certifies the same or a different person, or the same individual, as fiduciary, make payments to the person certified by the fiduciary hub.

Note: If the only award action taken involved is the change or removal of a fiduciary, a notice of proposed adverse action is not required.

e. Handling a Custodian Under 38 CFR 3.850(c) Without Custody of the Veteran’s ChildrenActions to Take When a Custodian Ceases to Have Custody of a Child Beneficiary

If the authorization activity receives informationlearns that a custodian recognized under 38 CFR 3.850(c) ceases to have custody of the Veteran’s childrena child beneficiary,

submit VA Form 21-592 to the fiduciary hub , furnishing complete detailed information as to the actual custody status of the child’sren custody, and

include any information on the suitability of a parent-custodian to act in such capacityas the child’s custodian.

Page 19: m21-1.com  · Web viewReason(s) for Change. Citation. To explicitly state, rather than imply, that claims processors may change the name of a fiduciary, guardian, or legal custodian

5. Authorizing Awards Involving a Native American Minor or Incompetent Adult Under 38 CFR 13.62

Introduction This topic contains information on authorizing an awards involving a Native

American minor or incompetent adult under 38 CFR 13.62, including

awards under 38 CFR 13.62 to a bonded officer of the Native American Reservation, and

payee for awards authorizeding an award under 38 CFR 13.62.

Change Date February 23, 2011May 16, 2018

a. Awards Under 38 CFR 13.62 to a Bonded Officer of the Native American Reservation

Under 38 CFR 13.62, 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 VA Form 21-592 to the fiduciary hub for certification of the payee before processing the award.

b. Payee for Awards Authorizeding an Award Under 38 CFR 13.62

Do not enter the name of the superintendent or bonded officer of the Native American Reservation as the payee wWhen authorizing an award under 38 CFR 13.62 . to be paid to a superintendent or bonded officer of the Native American Reservationomit the name of the superintendent or other bonded officer on the award, and e Enter the payee on the award with the following notationinstead: “Bureau of Indian Affairs [name of agency or regional office], for [name of Native American beneficiary].”