If the VA has appointed a fiduciary to manage your benefits, you may feel like your independence has been stripped away. But you’re not stuck in this system forever. If you believe you’re capable of managing your own financial affairs again, there’s a clear process you can follow to exit the VA fiduciary program. This blog was put together by our veterans benefits advocates to help you understand this process and regain financial control.
What Is the VA Fiduciary Program?
The VA fiduciary program exists to protect veterans and their beneficiaries who are deemed unable to manage their VA funds due to injury, illness, or disability. If the VA determines that you’re not financially competent—whether because of a mental health condition, traumatic brain injury, or another serious impairment—it can assign a fiduciary to oversee your benefits. That person may be a family member, friend, or professional fiduciary.
The role of a fiduciary is to receive and use your VA benefits in your best interest. They’re responsible for making sure your bills are paid, your basic needs are met, and your funds aren’t misused. While the goal is protection, many veterans feel frustrated and even humiliated by the loss of financial control.
The fiduciary system can also raise red flags when it limits your ability to make decisions for yourself, particularly if you’ve made progress in your recovery or your cognitive function has improved.
Why the VA Appoints a Fiduciary in the First Place
To be assigned a fiduciary, the VA must find you “incompetent” to handle your own financial affairs. This decision is often triggered by medical evidence, such as a doctor’s statement or a Compensation and Pension (C&P) exam report that suggests you’re at risk of mismanaging your benefits. A common scenario is when a psychiatrist or other provider states that your condition interferes with judgment, memory, or reasoning.
Once incompetency is proposed, you have the right to challenge it. If you don’t, or if the VA upholds the decision, they will move forward with the fiduciary appointment. From there, your checks go to the fiduciary—not directly to you—and you’re required to get approval for major financial decisions.
How to Demonstrate Competency and Exit the Program
Exiting the fiduciary system isn’t as simple as asking. You need to prove to the VA that you’re now competent to manage your funds. That proof must be clear, persuasive, and well-documented. Here’s how you can make that happen:
● Get a Medical Opinion From a Treating Provider
One of the most powerful pieces of evidence is a written statement from a qualified healthcare provider who knows your condition and treatment history. This opinion should clearly state that you are mentally competent to handle your own finances. It’s not enough for them to say you’ve improved. They must specifically address your ability to manage your VA benefits.
● Request a Field Examination
You can request a field exam through the VA Fiduciary Hub that oversees your case. During this in-person meeting, the VA will assess your living conditions, daily functioning, and how well you understand your financial responsibilities. They may ask questions about your monthly expenses, bank account balances, and how you would handle unexpected costs.
● Show a Stable Track Record
The VA will want to see that you’ve maintained stability over time. This includes consistent medical treatment, no recent hospitalizations for mental health crises, and a pattern of responsible behavior. If you’ve already been managing other income sources or paying your own bills without issue, make sure you document that.
● Prepare for a Re-evaluation
Once you submit your evidence, the VA may order a new C&P exam to reassess your mental capacity. This exam will evaluate your cognitive function, reasoning skills, and financial understanding. Don’t leave this exam to chance; prepare for it in advance. Compile documentation to support your case and practice answering questions the doctor might ask.
What Happens If Your Request Is Denied?
If the VA denies your request to be removed from the fiduciary program, you have options. You can appeal the decision by filing a Notice of Disagreement (NOD), requesting a Higher-Level Review, or submitting a Supplemental Claim with new evidence. You don’t have to accept the denial as final. Work with a VA consulting service to present a stronger case in the appeals process.
The Impact of Being in the Fiduciary Program
While the VA fiduciary system is meant to help, being in the program can affect more than your finances. For example, being deemed financially incompetent may trigger a report to the FBI’s National Instant Criminal Background Check System (NICS), limiting your legal right to own firearms. Many veterans are shocked to learn this only after trying to purchase a firearm and being denied.
Key Takeaways as You Plan Your Exit
If you’re considering getting out of the VA fiduciary program, stay organized and proactive. The VA isn’t going to reverse the decision without strong evidence and a clear process.
Focus on:
- Getting a written medical opinion from a qualified provider supporting your competence.
- Demonstrating stability in your mental health and behavior.
- Preparing for a potential C&P exam or field visit.
- Keeping records of how you’ve met your financial responsibilities outside VA benefits.
If your condition has improved and you can manage your affairs again, don’t hesitate to make your case. With the right documentation and approach, you can take the steps to regain full control of your benefits.
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Infographic
To leave the VA fiduciary system, you must show the VA that you can manage your finances independently. The key is presenting clear, persuasive, and well‑documented evidence of your capability. This infographic outlines the steps for exiting the VA fiduciary program.
