Probate / Fiduciary
VA Fiduciary Bond
A VA fiduciary bond is required of a person the Department of Veterans Affairs appoints to manage VA benefits for a beneficiary who cannot manage them.
- Required by
- U.S. Department of Veterans Affairs fiduciary hubs (38 CFR 13.230)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
Used to protect the interest of an adult incompetent who receives funds from the Secretary of Veterans Affairs. The bond is payable to the Secretary of Veterans Affairs and covers the VA benefit funds the fiduciary manages. The surety and fiduciary are liable if the fiduciary misuses those benefits.
Who needs it
- VA-appointed fiduciaries managing more than $25,000 in VA benefits
- Fiduciaries the VA Hub Manager orders to bond for special reasons
What the underwriter looks at
- Amount of VA funds under management
- Fiduciary's credit report
- Criminal or financial history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
When do I need the bond?
Within 60 days of appointment if the VA funds due will exceed $25,000, or within 60 days of funds building up past $25,000. The VA will hold lump-sum payments until the bond is furnished.
Who is exempt?
Spouses of the beneficiary, banks and trust companies, and court-appointed fiduciaries whose state court bond covers both VA and non-VA funds, among others.
What if the funds change?
You must adjust the bond within 60 days of a change of more than 20 percent, up or down.