38 U.S.C. § 6106 — Misuse of benefits by fiduciaries
submitted 22 years ago by Pub. L. 108-454 to r/title-38-VETERANS-BENEFITS · 214 words · no verdicts yet
A fiduciary may not charge a beneficiary a fee for a month in which the fiduciary misused benefits. Misuse means using a payment for something other than the beneficiary’s or dependents’ use and benefit, except authorized fees and costs.
(a) A fiduciary may not collect a fee from a beneficiary for a month in which the Secretary* or a court with jurisdiction finds that the fiduciary misused all or part of the benefit. A fee collected for that month is treated as misused benefit. (b) For this chapter, misuse occurs when a fiduciary receives a benefit payment under a law administered by the Secretary for a beneficiary’s use and benefit but uses it, in whole or part, for another purpose or for a purpose other than the beneficiary’s or dependents’ use and benefit. An amount retained as a fiduciary fee or commission, attorney fee including expenses, or court costs is for the beneficiary’s use and benefit if the Secretary or a court with jurisdiction authorized it. (c) The Secretary may define “use and benefit” by regulation.
A fiduciary may not collect a fee from a beneficiary for any month with respect to which the Secretary* or a court of competent jurisdiction has determined that the fiduciary misused all or part of the individual’s benefit, and any amount so collected by the fiduciary as a fee for such month shall be treated as a misused part of the individual’s benefit.
For purposes of this chapter, misuse of benefits by a fiduciary occurs in any case in which the fiduciary receives payment, under any of laws administered by the Secretary, for the use and benefit of a beneficiary and uses such payment, or any part thereof, for a use other than for the use and benefit of such beneficiary or that beneficiary’s dependents. Retention by a fiduciary of an amount of a benefit payment as a fiduciary fee or commission, or as attorney’s fees (including expenses) and court costs, if authorized by the Secretary or a court of competent jurisdiction, shall be considered to be for the use or benefit of such beneficiary.
The Secretary may prescribe by regulation the meaning of the term “use and benefit” for purposes of this section.
Source credit: (Added Pub. L. 108–454, title V, § 503(a)(1), Dec. 10, 2004, 118 Stat. 3619.)
- 2004Enacted · Pub. L. 108-454 · 118 Stat. 3619
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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