Section B. Processing Awards to Incompetent Beneficiaries Overview In this Section This section contains the following topics: Topic Topic Name General Authorization Issues in Incompetency Cases Handling Incompetency Determinations and Processing Awards Due Process Requirements for Incompetency Determinations Information About the Brady Act Processing Awards for Supervised Direct Payment (SDP) 4. General Authorization Issues in Incompetency Cases Introduction This topic contains information on general authorization issues in incompetency cases, including , and . Change Date May 6, 2013 a. Indicating Incompetency When Scheduling a Physical Examination When scheduling an incompetent Veteran for a physical examination, indicate the fact of incompetency on VA Form 21-2507, Request for Physical Examination, by including incompetent after the name of the Veteran, and fiduciary in the address space, followed by the name and address of the fiduciary. Note: Because a computer-generated VA Form 21-2507a, Request for Physical Examination, shows the name and address of the fiduciary with the descriptive legend and the name of the Veteran, no additional indication is required when the request for examination is made on this form. References: For information on completion of an electronic request for an examination, see the .
d. Authorization Actions Upon Receipt of a for Payment Use the table below to determine the appropriate authorization actions to take upon receipt of a recommendation for payment from a fiduciary hub or the fiduciary activity. Note: If the beneficiary’s award requires adjustment, the RO makes the adjustment under the pending EP 290. If no adjustment is necessary, the RO clears the pending EP 290. If the fiduciary hub/activity … Then the RO … concurs with the rating of incompetency determines that a fiduciary is desirable, and effects and certifies the appointment of a fiduciary to the RO by sending VA Form 21-555 releases any withheld benefits to the fiduciary within 15 days of receipt of VA Form 21-555, and in accordance with instructions from the fiduciary hub/activity, and the procedures set forth in . If the RO adjusted the beneficiary’s award, it must also furnish the certifying fiduciary hub/activity with a copy of the award document, and notify the fiduciary of the award action and his/her appellate rights regarding the award adjustment, per . concludes the beneficiary is incompetent, but reasonable protection of the interests of the beneficiary can be accomplished with follow-up, personal contact, and furnishes the RO with certification of supervised direct payment (SDP) on VA Form releases any withheld benefits directly to the beneficiary within 15 days of receipt of VA Form 21-555, and in accordance with instructions from the fiduciary hub/activity, and the procedures set forth in . If the RO adjusted the beneficiary’s award, it must also furnish the certifying fiduciary hub/activity with a copy of the award document, and notify the beneficiary of the award action and his/her appellate rights regarding the award adjustment, per .
control for receipt of VA Form 21-555 from the fiduciary hub/activity. 3 If the Veteran has been admitted to a hospital for treatment or observation, request medical records from the hospital that would be useful in evaluating the Veteran’s competency. 4 Pending certification of a fiduciary or other instructions from the fiduciary hub/activity, continue any existing apportionments, and payments being made to the Veteran. Reference: For more information on how to handle a court’s appointment of more than one fiduciary, see . 5 Upon receipt of certification from the fiduciary hub/activity process the payee certification from VA Form 21-555 refer the case for a formal rating decision if evidence of incompetence is provided with the VA Form 21-555, and notify the insurance activity of the change in status by following the procedures in (if the fiduciary hub/activity did not send the insurance activity a copy of VA Form 21-555). Reference: For more information on the authorization actions to take upon receipt of a recommendation for payment from a fiduciary hub or the fiduciary activity, see . h. Handling a Judicial Determination of Incompetency for a Parent, Surviving Spouse, or Helpless Child Rating action is not required when a parent, surviving spouse, or adult helpless child is judicially determined to be incompetent. Continue direct payment pending receipt of certification of a fiduciary or other payee from the fiduciary hub/activity.
6. Due Process Requirements for Incompetency Determinations Introduction This topic contains information on due process requirements for incompetency determinations, including , and . Change Date December 19, 2014 a. Elements of a Notice of a Proposed Rating of Incompetency Notice of a proposed rating of incompetency must include: a copy of the proposed rating decision or a short summary of the facts and evidence of record that supports the finding of incompetency an explanation of the effect that a finding of incompetency has on the payment of VA benefits notice that a VA rating of incompetency prevents the beneficiary from purchasing firearms, according to the Brady Handgun Violence Prevention Act (the Brady Act) a statement of the beneficiary’s right to submit evidence to show why the proposed action should not be taken request a personal hearing to present evidence, and have representation during the hearing, and an indication that the beneficiary has 60 days to respond to the notice. Note: If a beneficiary requests a hearing at any time before VA makes a final decision on the beneficiary’s competency, VA will postpone making the final decision until after it holds the hearing. References: For sample language for notice of a proposed rating of incompetency, see . For more information about the Brady Act, see .
j. Actions to Take After Making a Decision on a Request for Relief After making an administrative decision on a request for relief from the requirements of the Brady Act, VSRs must clear the pending EP 290 upload the decision and all evidence/information gathered in connection with it into the beneficiary’s electronic claims folder (eFolder) (If the beneficiary also has a traditional claims folder, VSRs must file down the referenced documentation on the right flap of the claims folder.), and follow the instructions in the table below. If relief is ... Then the VSR must ... denied notify the beneficiary, using the NICS Relief Denial letter in Personal Computer Generated Letters (PCGL). granted notify the beneficiary, using the NICS Relief Grant letter in PCGL e-mail notice of the grant under the subject heading NICS Relief Grant to VAVBAWAS/CO/NICS within three days, and include the following information about the beneficiary in the body of the e-mail: name claim number Social Security number (if different than the claim number) date of birth address telephone number, and date of the grant of relief. Note: Upon receipt of the e-mail, the staff that monitors the NICS mailbox notifies the FBI that VA has granted a relief request. Within approximately two months of receiving notice, the FBI will remove the beneficiary’s name from NICS. 8. Processing Awards for Supervised Direct Payment (SDP) Introduction This topic contains information on processing awards of SDP, including , and .