The Department of Veterans Affairs (VA) or Veterans Affairs Administration has developed a program that protects the benefits of veterans that have been injured or inflicted by disease, or for the care of their children, that either need assistance or can not manage their own financial affairs.
The VA will appoint a volunteering individual known as a fiduciary or legal custodian to manage the veteran estate. The person appointed is responsible for managment of the benefits and will also be held liable for any mismangement as well. To ensure against financial mismanagement or abuse, a fiduciary surety bond is required. The amount of the bond will be determined by the Veterans Affairs Administration and is based on settlements and monthly deposits. This appointment will come in the form of a confirmation letter that will also include the bond amount that will be required.
Upon reciept of the appointment letter, the fiduciary may then contact a surety agency such as The Surety Group, to go through the application process to obtain a surety bond.
In addition to obtaining a surety bond, the Surety issuing the bond will most likely request that you sign an indemnity agreement. The indemnity agreement is a legal document in which you will need to sign that states at a minimum that you will pay the initial premium and annual renewal premiums, and repay the Surety in the event of a verifiable claim, as well as any court fees incurred by the Surety.
During the course of your appointment as a fiduciary or legal custodian, the VA will monitor any checking or savings accounts or other financial accounts the benefits may be held in through financial accounting reports. This ensures that the funds are properly handled by the fiduciary for the care and maintenance of the ward. Funds that are used inappropriately, fraudulently or taken for personal use may result in a claim by the VA against the surety bond.
In the event a claim is paid by the Surety, you will be responsible for paying the Surety back.
The premium you pay for a Fiduciary Surety Bond is dependent on the credit of the appointed fiduciary and the required bond amount. A copy of the letter that you will receive from the Veteran's Affairs Administration will need to be emailed to info@SuretyGroup.com or faxed to 404-351-3237 prior to the issuance of the bond.
For more information, read our Blog on Fiduciary Bonds.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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