38 U.S.C. § 5507 — Inquiry, investigations, and qualification of fiduciaries
submitted 22 years ago by Pub. L. 108-454 to r/title-38-VETERANS-BENEFITS · 517 words · no verdicts yet
Before certifying a fiduciary, the Secretary must investigate fitness, the beneficiary’s interest, and any required bond. Special expedited investigations and temporary fiduciaries are allowed in listed situations.
(a) Certification. The Secretary* may certify someone to receive a beneficiary’s benefits as fiduciary* under section 5502 only after (1) investigating fitness before certification, including a face-to-face interview and a credit report from within one year when practicable; (2) finding under regulations that certification serves the beneficiary’s interest; and (3) receiving any bond the Secretary requires.
(b) Convictions. The Secretary must ask whether the person was convicted under Federal or State* law of an offense resulting in more than one year in prison. If so, certification is allowed only if the Secretary finds the person appropriate for this beneficiary under the circumstances.
(c) Expedited process. (1) For a proposed fiduciary described in (2), the Secretary may investigate on an expedited basis and waive a specific requirement, including (a)(1)(A)–(C), under regulations. (2) This applies to (A) a natural, adoptive, or stepparent of a minor beneficiary; (B) the spouse* or parent* of an incompetent beneficiary; (C) a person appointed by a court with jurisdiction; or (D) someone appointed to manage an estate where annual veterans benefits do not exceed $3,600, adjusted under section 5312.
(d) Temporary fiduciaries. If needed to protect a beneficiary’s assets while an incompetency decision is made or appealed, or while a fiduciary appeals a misuse decision, the Secretary may appoint one or more temporary fiduciaries for no more than 120 days. After 120 days, the Secretary may continue only after obtaining a court order appointing a guardian, conservator, or other fiduciary under section 5502(b).
Any certification of a person for payment of benefits of a beneficiary to that person as such beneficiary’s fiduciary* under section 5502 of this title shall be made on the basis of—
an inquiry or investigation by the Secretary* of the fitness of that person to serve as fiduciary for that beneficiary, such inquiry or investigation—
to be conducted in advance of such certification;
to the extent practicable, to include a face-to-face interview with such person; and
to the extent practicable, to include a copy of a credit report for such person issued within one year of the date of the proposed appointment;
adequate evidence that certification of that person as fiduciary for that beneficiary is in the interest of such beneficiary (as determined by the Secretary under regulations); and
the furnishing of any bond that may be required by the Secretary.
As part of any inquiry or investigation of any person under subsection (a), the Secretary shall request information concerning whether that person has been convicted of any offense under Federal or State* law which resulted in imprisonment for more than one year. If that person has been convicted of such an offense, the Secretary may certify the person as a fiduciary only if the Secretary finds that the person is an appropriate person to act as fiduciary for the beneficiary concerned under the circumstances.
In the case of a proposed fiduciary described in paragraph (2), the Secretary, in conducting an inquiry or investigation under subsection (a)(1), may carry out such inquiry or investigation on an expedited basis that may include waiver of any specific requirement relating to such inquiry or investigation, including the otherwise applicable provisions of subparagraphs (A), (B), and (C) of such subsection. Any such inquiry or investigation carried out on such an expedited basis shall be carried out under regulations prescribed for purposes of this section.
Paragraph (1) applies with respect to a proposed fiduciary who is—
the parent* (natural, adopted, or stepparent) of a beneficiary who is a minor;
the spouse* or parent of an incompetent beneficiary;
a person who has been appointed a fiduciary of the beneficiary by a court of competent jurisdiction; or
being appointed to manage an estate where the annual amount of veterans benefits to be managed by the proposed fiduciary does not exceed $3,600, as adjusted pursuant to section 5312 of this title.
When in the opinion of the Secretary, a temporary fiduciary is needed in order to protect the assets of the beneficiary while a determination of incompetency is being made or appealed or a fiduciary is appealing a determination of misuse, the Secretary may appoint one or more temporary fiduciaries for a period not to exceed 120 days. If a final decision has not been made within 120 days, the Secretary may not continue the appointment of the fiduciary without obtaining a court order for appointment of a guardian, conservator, or other fiduciary under the authority provided in section 5502(b) of this title.
Source credit: (Added Pub. L. 108–454, title V, § 502(a), Dec. 10, 2004, 118 Stat. 3618.)
- 2004Enacted · Pub. L. 108-454 · 118 Stat. 3618
A history note hasn’t been published yet. The record shows enactment by Pub. L. 108-454 on 2004-12-10.
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