I am a fiduciary and over the past month, I’ve been wading my way through fiduciary purgatory, actually hell if I wish to be blunt. Eighteen hours of organizing a year’s worth of banking records and I’d like to offer up some advice to those who are new to the fiduciary life.
Normally, fiduciaries are appointed when the recipient of VA benefits is deemed mentally incompetent. A veteran with a rating of 100% for PTSD is almost alway assigned a fiduciary. Some are assigned "professional" fiduciaries, but many more are family members.
If you are married to your veteran, paperwork is considerably less, or so I’ve been told by two very helpful gentlemen I spoke to over the phone. If you are not and this is your first year, you are in for a bumpy ride so here’s what I’ve learned.
First, thank you. Thank you for taking this responsibility. It’s not easy and it’s not fun, but it’s worth it to know you’re taking care of someone who’s served their country and given so much.
Second, get a separate bank account for the VA payments even if the VA officer who comes to your house says there is no need. He is wrong. This is for ease of accounting and your privacy. At this point they are wading through my personal finances as well as my veteran’s because I did not do this.
Third, start a spreadsheet now. Don’t just save your receipts in a box and wait for them to ask for accounting. They won’t. You are expected to know that after a year you must send in the paperwork. Begin your accounting and keep up with it all year. I did it in a matter of two fun filled days last month. That paperwork by the way was rejected for a number of reasons, none of which had to do with the numbers I submitted. The papers must be filled out exactly as they want, but you have to ask what they want.
Forth, get the paperwork now. You will need VA form 21-4706b and VA form 21-4718a. Look it over so you are familiar with how to divide up the expenses. It will make the accounting easier in the long run. Why the VA does not hand out the first set of forms when they interview the perspective fiduciary I will never know. Had I had the forms from the beginning, we could have avoided a huge amount of stress over the past weeks.
Oh, I forgot the most important point. The paperwork they send you is computer generated. Do not hesitate to call your fiduciary hub with questions or concerns. Though you may get the run around at first and you will, sorry, there are many helpful people who are willing to work with you to get the paperwork filled out correctly and keep you on track to taking care of your obligation as a fiduciary.
Luckily, a week and two days ago, Chris and I were married. I am technically no longer his custodian or fiduciary. I am now spouse. After I resend last terms fiduciary papers, which were refilled out with the help of a lovely man at the VA named Larry, I only have October and November of this year to account for, then I’m done. Hopefully. I’ll let you know if things change.
