Page:United States Statutes at Large Volume 118.djvu/3649

 118 STAT. 3619 PUBLIC LAW 108–454—DEC. 10, 2004 ‘‘(A) the parent (natural, adopted, or stepparent) of a bene- ficiary who is a minor; ‘‘(B) the spouse or parent of an incompetent beneficiary; ‘‘(C) a person who has been appointed a fiduciary of the beneficiary by a court of competent jurisdiction; or ‘‘(D) being appointed to manage an estate where the annual amount of veterans benefits to be managed by the proposed fiduciary does not exceed $3,600, as adjusted pursuant to sec- tion 5312 of this title. ‘‘(d) TEMPORARY FIDUCIARIES.—When in the opinion of the Sec- retary, a temporary fiduciary is needed in order to protect the assets of the beneficiary while a determination of incompetency is being made or appealed or a fiduciary is appealing a determina- tion of misuse, the Secretary may appoint one or more temporary fiduciaries for a period not to exceed 120 days. If a final decision has not been made within 120 days, the Secretary may not continue the appointment of the fiduciary without obtaining a court order for appointment of a guardian, conservator, or other fiduciary under the authority provided in section 5502(b) of this title.’’. (b) CLERICAL AMENDMENT.—The table of sections at the begin- ning of such chapter is amended by adding after the item added by section 501(a)(2) the following new item: ‘‘5507. Inquiry, investigations, and qualification of fiduciaries.’’. SEC. 503. MISUSE OF BENEFITS BY FIDUCIARIES. (a) PROTECTION OF VETERANS BENEFITS WHEN ADMINISTERED BY FIDUCIARIES.—(1) Chapter 61 is amended by adding at the end the following new sections: ‘‘§ 6106. Misuse of benefits by fiduciaries ‘‘(a) FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY FIDU- CIARIES.—A fiduciary may not collect a fee from a beneficiary for any month with respect to which the Secretary or a court of com- petent jurisdiction has determined that the fiduciary misused all or part of the individual’s benefit, and any amount so collected by the fiduciary as a fee for such month shall be treated as a misused part of the individual’s benefit. ‘‘(b) MISUSE OF BENEFITS DEFINED.—For purposes of this chapter, misuse of benefits by a fiduciary occurs in any case in which the fiduciary receives payment, under any of laws adminis- tered by the Secretary, for the use and benefit of a beneficiary and uses such payment, or any part thereof, for a use other than for the use and benefit of such beneficiary or that beneficiary’s dependents. Retention by a fiduciary of an amount of a benefit payment as a fiduciary fee or commission, or as attorney’s fees (including expenses) and court costs, if authorized by the Secretary or a court of competent jurisdiction, shall be considered to be for the use or benefit of such beneficiary. ‘‘(c) REGULATIONS.—The Secretary may prescribe by regulation the meaning of the term ‘use and benefit’ for purposes of this section. ‘‘§ 6107. Reissuance of benefits ‘‘(a) NEGLIGENT FAILURE BY SECRETARY.—(1) In any case in which the negligent failure of the Secretary to investigate or monitor a fiduciary results in misuse of benefits by the fiduciary, the Sec- retary shall pay to the beneficiary or the beneficiary’s successor VerDate 11-MAY-2000 13:54 Nov 10, 2005 Jkt 029194 PO 00000 Frm 00153 Fmt 6580 Sfmt 6581 C:\STATUTES\2004\29194PT4.001 APPS10 PsN: 29194PT4

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