Federal Fiduciary's Accounting
You are a VA-appointed fiduciary (not court-appointed) managing VA benefits for a mentally incompetent or incapacitated beneficiary, and VA is requesting your annual account.
Gather before you start
Attach with the form
Section I - Fiduciary Identification
Blocks 1-5Fiduciary name, address, phone, relationship to beneficiaryPII
Your information as the fiduciary. Include your relationship to the beneficiary (parent, sibling, spouse, professional fiduciary, etc.) and how VA can contact you with questions about the accounting.
e.g., Mary Smith, 456 Oak Lane, Tucson AZ 85701; mother of beneficiary John Smith
- Using the beneficiary's address instead of the fiduciary's own address - VA needs to reach the fiduciary.
Section II - Beneficiary Identification
Blocks 6-9Beneficiary name, SSN, VA File NumberPII
The veteran or other beneficiary whose VA funds you are managing. Use their VA File Number from VA award letters.
e.g., John Smith, SSN: 123-45-6789, VA File: C-12345678
- Confusing the fiduciary and beneficiary sections - fiduciary is YOU; beneficiary is the veteran.
Section III - Funds Received During the Period
Blocks 10-18All VA benefit payments received during the accounting period
List all VA benefit deposits: total compensation or pension received, beginning bank balance, any interest earned on VA funds. Provide month-by-month or quarter-by-quarter totals. This must reconcile exactly with bank statements.
e.g., Beginning balance: $2,400 VA compensation received (12 mo x $1,850): $22,200 Interest earned: $45
- Not accounting for every dollar received - VA compares to their payment records exactly.
- Combining VA funds with personal funds in one bank account - VA funds should be maintained in a separate account.
Section IV - Funds Disbursed During the Period
Blocks 19-28All expenditures of VA funds by categoryRepeatable
Itemize all spending of VA funds: housing (rent/mortgage), food, clothing, medical care, recreation, transportation, personal allowance to beneficiary, administrative costs. Every dollar spent must be documented with receipts and explained as for the beneficiary's benefit.
e.g., Rent: $14,400 Food: $3,600 Medical copays: $1,200 Clothing: $600 Personal allowance: $1,800 Total: $21,600
- Not keeping receipts - VA may audit; receipts are the proof that funds were spent appropriately.
- Paying yourself a fee from VA funds without VA approval - fiduciary fees must be pre-approved by VA.
- Commingling personal funds - only VA-benefit funds should flow through the fiduciary account.
Section V - Ending Balance and Asset Summary
Blocks 29-33Ending balance and any saved/invested funds
The ending bank balance plus any invested VA funds. This must mathematically equal: beginning balance + receipts - disbursements. Include any savings bonds, CDs, or investments purchased with VA funds.
e.g., Ending bank balance: $3,045 No investments Total estate: $3,045
- Ending balance that does not reconcile - VA will request a corrected accounting.
- Not disclosing invested funds - all VA funds whether in a bank or investment must be reported.
Section VI - Fiduciary Certification
Blocks 34-35Fiduciary signature and datePII
Sign and date under penalty of perjury. You are certifying that the accounting is accurate and complete and that all funds were used exclusively for the beneficiary's benefit.
(fiduciary signature and date)
- Not attaching bank statements - VA requires supporting documentation.
- Misuse of fiduciary funds is a federal crime and grounds for immediate removal as fiduciary.