## Section C. Authorizing Awards for Fiduciary Cases

#### Overview

+------------+---------------------------------------------------------+
| #          | > This section contains the following topics:           |
| #### In th |                                                         |
| is Section |                                                         |
+------------+---------------------------------------------------------+

  ---------- ----------------------------------------------- ------------
  Topic      Topic Name                                      See Page

  9          General Authorization Issues in Fiduciary Cases 9-C-2

  10         Authorizing Awards Involving a Fiduciary for a  9-C-5
             Minor or Incompetent Adult                      

  11         Controlling Awards for Children                 9-C-7

  12         Authorizing Awards Involving a                  9-C-12
             Custodian-in-Fact Under 38 CFR 13.63            

  13         Authorizing Awards Involving a Custodian Under  9-C-15
             38 CFR 3.850(c)                                 

  14         Authorizing Awards Involving a Native American  9-C-18
             Minor or Incompetent Adult Under 38 CFR 13.62   
  ---------- ----------------------------------------------- ------------

#### 9. General Authorization Issues in Fiduciary Cases

+------------+---------------------------------------------------------+
| ##### In   | > This topic outlines general authorization issues in   |
| troduction | > fiduciary cases, including                            |
|            |                                                         |
|            | -   outdated certifications                             |
|            |                                                         |
|            | -   making awards to joint guardians                    |
|            |                                                         |
|            | -   handling appointment of multiple guardians          |
|            |                                                         |
|            | -   handling irregularity of names on guardianship      |
|            |     papers and awards                                   |
|            |                                                         |
|            | -   handling name changes, and                          |
|            |                                                         |
|            | -   notifying the F&FE activity of changes and          |
|            |     additional information.                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Ch   | > July 26, 2007                                         |
| ange Date  |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Do *not* make an award to a guardian or other         |
| ### a. Out | > fiduciary                                             |
| dated Cert |                                                         |
| ifications | -   based on a fiduciary and field examination (F&FE)   |
|            |     activity 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 case, the F&FE      |
|            | > activity must provide either *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 F&FE activity,          |
|            | > furnishing all of the pertinent information as        |
|            | > described in M21-1MR, Part III, Subpart v, 9.A.1.c.   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > In cases of joint guardianship, make all awards       |
| #### b. Ma | > payable to the guardians as joint payees as shown on  |
| king Award | > the F&FE activity's certification.                    |
| s to Joint |                                                         |
|  Guardians |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > If it appears that more than one guardian has been    |
| #### c. Ha | > appointed, refer this information to the F&FE         |
| ndling App | > activity. The F&FE activity will advise which         |
| ointment o | > guardian to pay.                                      |
| f Multiple |                                                         |
|  Guardians |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

9\. General Authorization Issues in Fiduciary Cases, Continued

+------------+---------------------------------------------------------+
| ###        | > The names of guardians and wards should be identical  |
| ## d. Hand | > on guardianship papers and awards.                    |
| ling Irreg | >                                                       |
| ularity of | > Make the award in the name as shown on the F&FE       |
|  Names on  | > activity's certification if                           |
| Guardiansh |                                                         |
| ip Papers  | -   the name of the ward as it appears on the letters   |
| and Awards |     of guardianship or the F&FE activity's              |
|            |     certification is not the same as that under which   |
|            |     the claim was filed, and                            |
|            |                                                         |
|            | -   there is no question of identity.                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e. H | > Use the table below to handle changes to the name of  |
| andling Na | > a beneficiary, guardian, or fiduciary.                |
| me Changes |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| Individual's Situation           | Requirement for Name Change       |
+----------------------------------+-----------------------------------+
| Beneficiary with a name change,  | Make the change of name without   |
| unless payments are being made   | prior approval from the F&FE      |
| under letters of guardianship    | activity. (Send a copy of the     |
|                                  | transaction to the F&FE           |
|                                  | activity.)                        |
+----------------------------------+-----------------------------------+
| -   Female guardian or legal     | Accept a statement setting forth  |
|     custodian that has remarried | a new name without need for       |
|     or is divorced subsequent to | further evidence, per [38 CFR     |
|     appointment, or              | 3.85                              |
|                                  | 6](http://www.warms.vba.va.gov/re |
| -   any fiduciary, other than a  | gs/38CFR/BOOKB/PART3/S3_855.DOC). |
|     court-appointed fiduciary,   | (Send a copy of the transaction   |
|     with a minor change or       | to the F&FE activity.)            |
|     correction in name (not      |                                   |
|     identity)                    |                                   |
+----------------------------------+-----------------------------------+
| > Fiduciary certified by F&FE    | Make a change of the fiduciary    |
| > activity with a change of      | name/identity only at the request |
| > name/identity                  | of the F&FE activity.             |
+----------------------------------+-----------------------------------+

Continued on next page

9\. General Authorization Issues in Fiduciary Cases, Continued

+------------+---------------------------------------------------------+
| ##### f. N | > Use the table below to determine how to notify the    |
| otifying F | > F&FE activity of various types of changes or          |
| &FE Activi | > information regarding a beneficiary and/or fiduciary. |
| ty of Chan |                                                         |
| ges and Ad |                                                         |
| ditional I |                                                         |
| nformation |                                                         |
+------------+---------------------------------------------------------+

+--------------------------------+-------------------------------------+
| Type of Change/Information     | Action to Notify F&FE Activity      |
+--------------------------------+-------------------------------------+
| Awards or pending requests for | > Furnish a copy of all             |
| appointment of fiduciaries     | > correspondence or authorization   |
|                                | > actions to the F&FE activity.     |
+--------------------------------+-------------------------------------+
| Permanent transfer of the      | > Notify the F&FE activity at the   |
| claims folder                  | > regional office (RO) having       |
|                                | > jurisdiction of the fiduciary of  |
|                                | > the transfer by sending a copy of |
|                                | > *VA Form 70-7216a, Request for    |
|                                | > and/or Notice of Transfer of      |
|                                | > Veterans Records*.                |
+--------------------------------+-------------------------------------+
| Information about the          | > Inform the F&FE activity of all   |
| fiduciary indicating that      | > of the facts, including a         |
| he/she                         | > statement that payments have been |
|                                | > suspended, if such action has     |
| -   no longer has actual or    | > been taken.                       |
|     constructive custody of    |                                     |
|     the beneficiary, or        |                                     |
|                                |                                     |
| -   is deemed unsuitable or    |                                     |
|     unfit to act in a          |                                     |
|     fiduciary capacity         |                                     |
+--------------------------------+-------------------------------------+

#### 10. Authorizing Awards Involving a Fiduciary for a Minor or Incompetent Adult

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on authorizing an     |
| troduction | > award that involves a fiduciary for a minor or        |
|            | > incompetent adult, including                          |
|            |                                                         |
|            | -   F&FE activity certification requirement for court   |
|            |     documents                                           |
|            |                                                         |
|            | -   authorizing an award for a certified                |
|            |     fiduciary-payee, and                                |
|            |                                                         |
|            | -   references for special fiduciary authorization      |
|            |     procedures.                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 26, 2007                                         |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > When a court appoints a fiduciary for a minor or      |
|  F&FE Acti | > incompetent claimant, do not award payments to the    |
| vity Certi | > fiduciary until the F&FE activity furnishes *VA Form  |
| fication R | > 21-555*.                                              |
| equirement | >                                                       |
|  for Court | > If the authorization activity receives court          |
|  Documents | > documents from anyone other than the F&FE activity,   |
|            | > indicating the appointment of a fiduciary, review the |
|            | > documents to determine if a fiduciary file exists and |
|            | > take action as outlined in the table below.           |
+------------+---------------------------------------------------------+

+---------------------+------------------------------------------------+
| If a fiduciary file | Then ...                                       |
| ...                 |                                                |
+---------------------+------------------------------------------------+
| *exists*            | forward the documents to the proper F&FE       |
|                     | activity for review and recognition or         |
|                     | appointment of a successor fiduciary, if       |
|                     | necessary.                                     |
|                     |                                                |
|                     | ***Note***: The F&FE activity retains the      |
|                     | court documents.                               |
+---------------------+------------------------------------------------+
| *does not exist*    | -   attach the court documents to a completed  |
|                     |     *VA Form 21-592*, *Request for Appointment |
|                     |     of Fiduciary, Custodian or Guardian*, and  |
|                     |                                                |
|                     | -   refer the form and documents to the proper |
|                     |     F&FE activity for recognition or           |
|                     |     appointment of a fiduciary, if necessary   |
+---------------------+------------------------------------------------+

Continued on next page

10\. Authorizing Awards Involving a Fiduciary for a Minor or Incompetent
Adult, Continued

+------------+---------------------------------------------------------+
| #          | > Follow the steps in the table below when the F&FE     |
| #### b. Au | > activity furnishes *VA Form 21-555* to the            |
| thorizing  | > authorization activity.                               |
| an Award f |                                                         |
| or a Certi |                                                         |
| fied Fiduc |                                                         |
| iary-Payee |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Prepare the award using the following information as it      |
|       | appears in the F&FE activity'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     | Enter the fiduciary file location on the pending             |
|       | issue/corporate control or the fiduciary screen, as          |
|       | appropriate.                                                 |
+-------+--------------------------------------------------------------+
| 3     | > Annotate the award print with the following notation:      |
|       | > "*Fiduciary-payee certified by F&FE activity at \[RO of    |
|       | > jurisdiction\].*"                                          |
+-------+--------------------------------------------------------------+
| 4     | Furnish the certifying F&FE activity with a copy of any      |
|       | award made as a result of certification by the F&FE          |
|       | activity, including supervised direct payment (SDP) cases.   |
+-------+--------------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > For information on special authorization procedures   |
| c. Referen | > for a(n)                                              |
| ces for Sp |                                                         |
| ecial Fidu | -   custodian recognized under [38 CFR                  |
| ciary Auth |     3.850(c)](http://w                                  |
| orization  | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC), |
| Procedures |     see M21-1MR, Part III, Subpart v, 9.C.13.c          |
|            |                                                         |
|            | -   institutionalized veteran award, see M21-1MR, Part  |
|            |     III, Subpart v, Chapter 6.E.22, or                  |
|            |                                                         |
|            | -   consolidated award for children, see                |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   [M21-1, Part V,                                     |
|            |     4.05b](htt                                          |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch04.doc), |
|            |     for input of awards                                 |
|            |                                                         |
|            | -   M21-1MR, Part V, Subpart iii, 1.E.31.g, for pension |
|            |     cases, and                                          |
|            |                                                         |
|            | -   M21-1MR, Part IV, Subpart iii. 3.E.22.c, for DIC    |
|            |     cases.                                              |
+------------+---------------------------------------------------------+

#### 11. Controlling Awards for Children

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on controlling awards |
| troduction | > for children, including                               |
|            |                                                         |
|            | -   authority for governing minority status and payment |
|            |     of awards to children                               |
|            |                                                         |
|            | -   establishing a control for awards to minors         |
|            |                                                         |
|            | -   the age of majority by state/territory              |
|            |                                                         |
|            | -   establishing a control in the award for a mentally  |
|            |     incompetent child                                   |
|            |                                                         |
|            | -   establishing a control in the award for a           |
|            |     physically incapacitated child, and                 |
|            |                                                         |
|            | -   establishing a control in the award for a child     |
|            |     attending school                                    |
|            |                                                         |
|            | -   statutory change in the age of majority             |
|            |                                                         |
|            | -   authorizing direct payment due to a statutory       |
|            |     change in the age of majority                       |
|            |                                                         |
|            | -   retroactive benefits in an award made after the     |
|            |     attainment of majority, and                         |
|            |                                                         |
|            | -   eliminating the fiduciary file location after       |
|            |     providing direct payment.                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 26, 2007                                         |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Determinations as to minority status and propriety of |
|  Authority | > direct payment in awards to children are governed by  |
|  Governing |                                                         |
|  Minority  | -   State law as to age of attainment of majority, and  |
| Status and |                                                         |
|  Payment o | -   [38 CFR                                             |
| f Awards t |     3.850](http://w                                     |
| o Children | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > When an award is made through a fiduciary during a    |
| ### b. Est | > child's minority, establish a diary control (code 20) |
| ablishing  | > for timely action before the date of attainment of    |
| a Control  | > majority to determine the appropriateness of direct   |
| for Awards | > payment.                                              |
|  to Minors | >                                                       |
|            | > ***References***: Information about                   |
|            |                                                         |
|            | -   the age of majority is listed in the table at       |
|            |     M21-1MR, Part III, Subpart v, 9.C.11.c, and         |
|            |                                                         |
|            | -   establishing a diary control is included in the     |
|            |     *Share User Guide*.                                 |
+------------+---------------------------------------------------------+

Continued on next page

11\. Controlling Awards for Children, Continued

+------------+---------------------------------------------------------+
| ###        | > Use the table below to determine the age of majority  |
| ## c. Age  | > by State or U. S. territory.                          |
| of Majorit |                                                         |
| y by State |                                                         |
| /Territory |                                                         |
+------------+---------------------------------------------------------+

  -------------------- --------------- -------------------- ---------------
  State/Territory      Majority Age    State/Territory      Majority Age

  Alabama              19              Nebraska             19

  Alaska               18              Nevada               18

  American Samoa       18              New Hampshire        18

  Arizona              18              New Jersey           18

  Arkansas             18              New Mexico           18

  California           18              New York             18

  Colorado             18              North Carolina       18

  Connecticut          18              North Dakota         18

  Delaware             18              Ohio                 18

  District of Columbia 18              Oklahoma             18

  Florida              18              Oregon               18

  Georgia              18              Pennsylvania         18

  Guam                 18              Philippine Republic  21

  Hawaii               18              Puerto Rico          21

  Idaho                18              Rhode Island         18

  Illinois             18              South Carolina       18

  Indiana              18              South Dakota         18

  Iowa                 18              Tennessee            18

  Kansas               18              Texas                18

  Kentucky             18              Trust Territory      18

  Louisiana            18              Utah                 18

  Maine                18              Vermont              18

  Maryland             18              Virgin Islands       18

  Massachusetts        18              Virginia             18

  Michigan             18              Washington           18

  Minnesota            18              West Virginia        18

  Mississippi          18              Wisconsin            18

  Missouri             18              Wyoming              18

  Montana              18                                   
  -------------------- --------------- -------------------- ---------------

Continued on next page

11\. Controlling Awards for Children, Continued

+------------+---------------------------------------------------------+
| #####      | > When an award is made to a fiduciary for a minor      |
| d. Establi | > child who has been rated incapable of self-support    |
| shing a Co | > before the age of 18 due to mental incompetency       |
| ntrol in a |                                                         |
| n Award fo | -   prepare the award as an open-end award              |
| r a Mental |                                                         |
| ly Incompe | -   set a control to review the case six months before  |
| tent Child |     the date of attainment of the child's majority, and |
|            |                                                         |
|            | -   when the control matures, send the F&FE activity a  |
|            |     request for the appointment of a fiduciary for the  |
|            |     child as a mentally incompetent adult.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e. E | > When an award is being made to a fiduciary, including |
| stablishin | > one recognized under [38 CFR                          |
| g a Contro | > 3.850(c)](http://w                                    |
| l in an Aw | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC), |
| ard for a  | > for a physically incapacitated child only by reason   |
| Physically | > of minority                                           |
|  Incapacit |                                                         |
| ated Child | -   set a control to review the case three months       |
|            |     before the date of attainment of the child\'s       |
|            |     majority, and                                       |
|            |                                                         |
|            | -   when the control matures                            |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   obtain the child's current address, and             |
|            |                                                         |
|            | -   prepare an award providing direct payment to the    |
|            |     child, per [38 CFR                                  |
|            |     3.854](http://w                                     |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_853.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > When an award is being made to a fiduciary or a       |
| ### f. Est | > parental custodian for a child over age 18 attending  |
| ablishing  | > school by reason of minority only                     |
| a Control  |                                                         |
| in an Awar | -   set a control to review the case not less than 60   |
| d for a Ch |     days before the date of attainment of the child's   |
| ild Attend |     majority, and                                       |
| ing School |                                                         |
|            | -   when the control matures                            |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   ascertain marital status and verification of        |
|            |     continued schooling, and                            |
|            |                                                         |
|            | -   take action to provide direct payment to the child. |
|            |                                                         |
|            | > ***Note***: Make the direct payment award as of the   |
|            | > later of the following dates:                         |
|            |                                                         |
|            | -   the first day of the month of majority, or          |
|            |                                                         |
|            | -   date of last payment (DLP).                         |
+------------+---------------------------------------------------------+

Continued on next page

11\. Controlling Awards for Children, Continued

+------------+---------------------------------------------------------+
| ##### g.   | > Statutory changes in the age of majority make it      |
|  Statutory | > necessary to authorize a direct payment when the      |
|  Change in |                                                         |
|  the Age o | -   payments are being made through a fiduciary only    |
| f Majority |     because of the minority status of a child or        |
|            |     children, and                                       |
|            |                                                         |
|            | -   custodian or child requests direct payment pursuant |
|            |     to a statutory change in age of attainment of       |
|            |     majority.                                           |
|            |                                                         |
|            | > ***Note***: The F&FE activity routinely identifies    |
|            | > beneficiaries affected if there is the enactment of   |
|            | > law lowering the age of majority for accounts under   |
|            | > the F&FE activity's jurisdiction. If payment is being |
|            | > made by a separate award, the F&FE activity notifies  |
|            | > the authorization activity that direct payment to the |
|            | > child is in order.                                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > To authorize a direct payment because of a statutory  |
| h. Authori | > change in the age of majority                         |
| zing a Dir |                                                         |
| ect Paymen | -   process a Change Name (CNAM) to change the name and |
| t Due to a |     address, and                                        |
|  Statutory |                                                         |
|  Change in | -   make the change to direct payment as of the date of |
|  the Age o |     last payment (DLP).                                 |
| f Majority |                                                         |
|            | > If payments are being made                            |
|            |                                                         |
|            | -   under a consolidated award                          |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   amend the current award to remove the child, and    |
|            |                                                         |
|            | -   prepare a separate award to pay the child direct    |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   through a court-appointed fiduciary, refer requests |
|            |     for direct payment to the F&FE activity before      |
|            |     effecting any change.                               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### i.   | > Per [38 CFR                                           |
| Retroactiv | > 3.403(a)(2)](http://w                                 |
| e Benefits | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_403.DOC), |
|  in an Awa | > when a child receives a payment of benefits on or     |
| rd Made Af | > after attainment of majority, include benefits for    |
| ter the At | > any retroactive period in the award.                  |
| tainment o |                                                         |
| f Majority |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

11\. Controlling Awards for Children, Continued

+------------+---------------------------------------------------------+
| ##### j.   | > When it is necessary to change an award being made to |
| Eliminatin | > a fiduciary to provide direct payment, zero out the   |
| g the Fidu | > fiduciary file location.                              |
| ciary File |                                                         |
|  Location  |                                                         |
| After Prov |                                                         |
| iding Dire |                                                         |
| ct Payment |                                                         |
+------------+---------------------------------------------------------+

#### 12. Authorizing Awards Involving a Custodian-in-Fact Under 38 CFR 13.63

+------------+---------------------------------------------------------+
| ##### In   | > The F&FE activity may direct that a minor or          |
| troduction | > incompetent adult's award be made to a                |
|            | > custodian-in-fact for a limited amount of time.       |
|            | >                                                       |
|            | > This topic contains a definition of the term          |
|            | > *custodian-in-fact* and information on                |
|            |                                                         |
|            | -   definition: custodian-in-fact                       |
|            |                                                         |
|            | -   the authority to award to a custodian-in-fact per   |
|            |     38 CFR 13.63                                        |
|            |                                                         |
|            | -   authorizing an award under 38 CFR 13.63 at a rate   |
|            |     less than the total benefit, and                    |
|            |                                                         |
|            | -   the special law (SL) code requirements for awards   |
|            |     under 38 CFR 13.63 at a rate less than the total    |
|            |     benefit.                                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 26, 2007                                         |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > A *custodian-in-fact* is an emergency, interim        |
|  Definitio | > fiduciary of VA benefits for an incompetent           |
| n: Custodi | > beneficiary, certified by VA when                     |
| an-in-Fact |                                                         |
|            | -   payment cannot be made in a timely manner to an     |
|            |     existing fiduciary, and                             |
|            |                                                         |
|            | -   funds are necessary for current care and support.   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b    | > Per [38 CFR                                           |
| . Authorit | > 13.63](http://ww                                      |
| y to Award | w.warms.vba.va.gov/regs/38cfr/bookf/part13/s13_62.doc), |
|  to a Cust | > the F&FE activity may direct the authorization        |
| odian-in-F | > activity to make an award for a minor or incompetent  |
| act per 38 | > adult to a custodian-in-fact.                         |
|  CFR 13.63 | >                                                       |
|            | > Certification of a custodian-in-fact generally may    |
|            | > not exceed one year. In unusual circumstances, when a |
|            | > permanent fiduciary cannot be certified within this   |
|            | > period, a custodian-in-fact may be re-certified for   |
|            | > another limited period. VSCM approval is required.    |
|            | >                                                       |
|            | > ***Note***: The F&FE Activity's certification will    |
|            | > include the amount necessary to meet the              |
|            | > beneficiary's needs with the balance withheld pending |
|            | > certification of a permanent fiduciary.               |
+------------+---------------------------------------------------------+

Continued on next page

12\. Authorizing Awards Involving a Custodian-in-Fact Under 38 CFR
13.63, Continued

+------------+---------------------------------------------------------+
| #####      | > Follow the steps in the table below if the F&FE       |
| c. Authori | > activity directs payment under [38 CFR                |
| zing an Aw | > 13.63](http://w                                       |
| ard Under  | ww.warms.vba.va.gov/regs/38cfr/bookf/part13/s13_62.doc) |
| 38 CFR 13. | > for a veteran or surviving spouse at a rate less than |
| 63 at a Ra | > the total benefit payable.                            |
| te Less Th |                                                         |
| an the Tot |                                                         |
| al Benefit |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | On the award for the veteran or surviving spouse, enter the  |
|       | difference between the amount awarded and the total benefit  |
|       | payable as a Type 1 withholding.                             |
+-------+--------------------------------------------------------------+
| 2     | Make a total withholding effective at the expiration of the  |
|       | period specified by the F&FE activity to ensure that no      |
|       | further payments are made to the custodian-in-fact beyond    |
|       | that date.                                                   |
+-------+--------------------------------------------------------------+
| 3     | Control the case with a diary for follow-up action at ten    |
|       | months following the date of certification in order to       |
|       | receive the F&FE activity's designation of either a          |
|       |                                                              |
|       | -   permanent fiduciary, to whom withheld benefits will be   |
|       |     released, or                                             |
|       |                                                              |
|       | -   an extension of the custodian-in-fact period with VSCM   |
|       |     approval.                                                |
+-------+--------------------------------------------------------------+

Continued on next page

12\. Authorizing Awards Involving a Custodian-in-Fact Under 38 CFR
13.63, Continued

+------------+---------------------------------------------------------+
| #          | > Use the table below to determine the requirements of  |
| #### d. Sp | > any special law (SL) codes for awards made under [38  |
| ecial Law  | > CFR                                                   |
| (SL) Code  | > 13.63](http://w                                       |
| Requiremen | ww.warms.vba.va.gov/regs/38cfr/bookf/part13/s13_62.doc) |
| ts for Awa | > at a rate less than the total benefit payable.        |
| rds Under  | >                                                       |
| 38 CFR 13. | > ***Important***: All of the cases in the table below  |
| 63 at a Ra | > also require the authorization activity to control    |
| te Less Th | > for follow-up and limit the period during which       |
| an the Tot | > partial benefits may be paid according to M21-1MR,    |
| al Benefit | > Part III, Subpart v, 9.C.12.c.                        |
+------------+---------------------------------------------------------+

+----------------+-----------------------------------------------------+
| Type of Case   | Action                                              |
+----------------+-----------------------------------------------------+
| Death case     | Use SL code 10, per [M21-1, Part V,                 |
| award to a     | 6.09](http://                                       |
| child or       | www.warms.vba.va.gov/admin21/m21_1/part5/ch06.doc). |
| parent         |                                                     |
+----------------+-----------------------------------------------------+
| Apportioned    | -   Use SL code 10 on the primary surviving         |
| DIC or 306     |     spouse's award when payment is authorized to    |
| Pension case   |     the apportionee-child in an amount less than    |
|                |     the apportioned share prescribed in [M21-1,     |
|                |     Part I, Appendix                                |
|                |     B](http://www.warms.vba.va.gov/M21_1.html), and |
|                |                                                     |
|                | -   include the difference between the apportioned  |
|                |     share and the amount authorized as Type 1       |
|                |     withholding on the surviving spouse's award.    |
+----------------+-----------------------------------------------------+
| Apportioned    | Do *not* use a SL code or other special action if   |
| disability or  | the total amount payable in the case is properly    |
| Improved Death | disposed of by the                                  |
| Pension case   |                                                     |
|                | -   award, and                                      |
|                |                                                     |
|                | -   withholding on the primary beneficiary's award, |
|                |     including any amount withheld for the           |
|                |     apportionee.                                    |
|                |                                                     |
|                | ***Rationale***: There are no specific amounts      |
|                | prescribed for apportionees in apportioned          |
|                | disability or Improved Death Pension cases.         |
+----------------+-----------------------------------------------------+

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

+------------+---------------------------------------------------------+
| ##### In   | > In some cases, payments may be made to a custodian on |
| troduction | > behalf of a minor child without F&FE activity         |
|            | > certification, per 38 CFR 3.850(c).                   |
|            | >                                                       |
|            | > This topic contains information on                    |
|            |                                                         |
|            | -   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 certification of a fiduciary after an      |
|            |     award under 38 CFR 3.850(c), and                    |
|            |                                                         |
|            | -   handling a custodian under 38 CFR 3.850(c) without  |
|            |     custody of the veteran's children.                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Ch   | > July 26, 2007                                         |
| ange Date  |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > Per [38 CFR                                           |
| . When to  | > 3.850(c)](http://w                                    |
| Authorize  | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC), |
| an Award U | > make payments to a custodian on behalf of a minor     |
| nder 38 CF | > child without prior submission to, or certification   |
| R 3.850(c) | > by, the F&FE activity 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 the parent   |
|            |     is unfit.                                           |
|            |                                                         |
|            | > ***Note***: If the custodian to be recognized is the  |
|            | > natural or adoptive parent or stepparent, establish   |
|            | > legal relationship.                                   |
+------------+---------------------------------------------------------+

Continued on next page

13\. Authorizing Awards Involving a Custodian Under 38 CFR 3.850(c),
Continued

+------------+---------------------------------------------------------+
| #          | > Do not authorize an award under [38 CFR               |
| #### b. Wh | > 3.850(c)](http://                                     |
| en Not to  | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC) |
| Authorize  | > when any of the situations below exist.               |
| an Award U |                                                         |
| nder 38 CF | -   The F&FE activity has certified a legal custodian   |
| R 3.850(c) |     or fiduciary.                                       |
|            |                                                         |
|            | -   A court-appointed fiduciary is either in effect or  |
|            |     an appointment is pending.                          |
|            |                                                         |
|            | -   *VA Form 21-592* action is required by virtue of    |
|            |     the child's entitlement to VA insurance benefits.   |
|            |                                                         |
|            | -   *VA Form 21-592* is required by reason of           |
|            |     incompetency of an adult helpless child.            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Follow the steps in the table below to authorize an   |
| c. Authori | > award under [38 CFR                                   |
| zing Award | > 3.850(c)](http://                                     |
|  Under 38  | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC) |
| CFR 3.850( | > and notify the custodian.                             |
| c) and Not | >                                                       |
| ifying the | > ***Important***: Make no award under [38 CFR          |
|  Custodian | > 3.850(c)](http://                                     |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC) |
|            | > for an incompetent adult helpless child. Instead      |
|            | > request the appointment or certification of a         |
|            | > fiduciary, per M21-1MR, 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        Enter code 99 as the fiduciary file location for the identification of
           those accounts under [38 CFR
           3.850(c)](http://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC)

  4        Notify the custodian of the award action by using a Benefits Delivery
           Network (BDN)-generated letter, unless a locally-generated letter is
           required.
  -------- --------------------------------------------------------------------------

Continued on next page

13\. Authorizing Awards Involving a Custodian Under 38 CFR 3.850(c),
Continued

+------------+---------------------------------------------------------+
| ###        | > In some cases                                         |
| ## d. Hand |                                                         |
| ling Certi | -   the custodian recognized by the authorization       |
| fication o |     activity is found unsuitable to act in a fiduciary  |
| f a Fiduci |     capacity, and                                       |
| ary After  |                                                         |
| an Award U | -   the F&FE activity may                               |
| nder 38 CF |                                                         |
| R 3.850(c) | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   recommend a suspension of payments to conserve the  |
|            |     beneficiary's funds, and                            |
|            |                                                         |
|            | -   proceed with the appointment of an acceptable       |
|            |     fiduciary.                                          |
|            |                                                         |
|            | > In such cases, when an award has been made to a       |
|            | > custodian under [38 CFR                               |
|            | > 3.850(c)](http://                                     |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC) |
|            | > and the F&FE activity subsequently certifies a        |
|            | > different person or the same individual as fiduciary  |
|            |                                                         |
|            | -   delete fiduciary file location 99, and              |
|            |                                                         |
|            | -   make payments to the person certified by the F&FE   |
|            |     activity.                                           |
|            |                                                         |
|            | > ***Note***: If the only award action involved is the  |
|            | > change or removal of a fiduciary, a notice of         |
|            | > proposed adverse action is not required.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > If the authorization activity receives information    |
| ## e. Hand | > that a custodian recognized under [38 CFR             |
| ling a Cus | > 3.850(c)](http://                                     |
| todian Und | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_850.DOC) |
| er 38 CFR  | > ceases to have custody of the veteran's children      |
| 3.850(c) W |                                                         |
| ithout Cus | -   submit *VA Form 21-592* to the F&FE activity,       |
| tody of th |     furnishing complete information as to the actual    |
| e Veteran' |     custody of the children, and                        |
| s Children |                                                         |
|            | -   include any information on the suitability of a     |
|            |     parent-custodian to act in such capacity.           |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on authorizing an     |
| troduction | > award involving a Native American minor or            |
|            | > incompetent adult under 38 CFR 13.62, including       |
|            |                                                         |
|            | -   an award under 38 CFR 13.62 to a bonded officer of  |
|            |     the Native American Reservation, and                |
|            |                                                         |
|            | -   authorizing an award under 38 CFR 13.62.            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Ch   | > July 26, 2007                                         |
| ange Date  |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Under [38 CFR                                         |
|  Award Und | > 13.62](http://ww                                      |
| er 38 CFR  | w.warms.vba.va.gov/regs/38cfr/bookf/part13/s13_62.doc), |
| 13.62 to a | > an award for the use of a Native American beneficiary |
|  Bonded Of | > may be paid to the recognized superintendent or       |
| ficer of t | > bonded officer of the Native American Reservation.    |
| he Native  | > Send VA Form 21-592 to the F&FE activity for          |
| American R | > certification of the payee before processing the      |
| eservation | > award.                                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > When authorizing an award under [38 CFR               |
|  Authorizi | > 13.62](http://w                                       |
| ng an Awar | ww.warms.vba.va.gov/regs/38cfr/bookf/part13/s13_62.doc) |
| d Under 38 | > to be paid to a superintendent or bonded officer of   |
|  CFR 13.62 | > the Native American Reservation                       |
|            |                                                         |
|            | -   omit the name of the superintendent or other bonded |
|            |     officer on the award, and                           |
|            |                                                         |
|            | -   enter the payee on the award with the following     |
|            |     notation: "*Bureau of Indian Affairs \[name of      |
|            |     agency or station\], for \[name of Native American  |
|            |     beneficiary\].*"                                    |
+------------+---------------------------------------------------------+