VA Fiduciary Program by the Numbers: 102,875 Beneficiaries and $2.77 Billion a Year

Disclaimer: General educational research only — not legal, tax or financial advice. VA fiduciary rules are federal, but wills, powers of attorney, guardianship and trusts are governed by state law. Talk to a VA-accredited representative or an estate planning attorney before you act.

Estate Planning Data & Research → VA Fiduciary Program

The Department of Veterans Affairs had a fiduciary managing VA benefits for 102,875 people during fiscal year 2025, according to the Veterans Benefits Administration’s Annual Benefits Report. Those fiduciaries handled an estimated $2.77 billion a year in VA compensation, pension and survivor benefits. The program served 61,289 veterans, 19,007 surviving spouses, 14,609 minor children, 7,410 adult disabled children, 534 insurance beneficiaries and 26 dependent parents.

A VA fiduciary is the person or organization VA appoints to receive and manage someone’s VA benefits when VA decides that person can’t manage them, when a court has already found that they can’t manage their financial affairs, or when the beneficiary is a minor. It’s a separate system from a power of attorney, a living trust or a court guardianship, and VA picks the fiduciary itself. For families, that raises practical estate planning questions: who will VA choose, will the papers you already signed count, and what happens to the money when the veteran or survivor dies? This page shows how the program has changed over 11 years and what you can put in place now.

A VA fiduciary only manages VA money, and VA decides who serves. A will, a power of attorney and, for many families, a living trust cover everything else and make your wishes clear. See whether a trust or a will fits your situation.

Key findings

• 102,875 beneficiaries served in FY2025, with $2,770,581,071 a year in benefits managed. Disability compensation is 79.2% of the money ($2.19 billion); VA fiduciaries also manage $222 million in veterans pension, $155 million in survivors pension and $199 million in Dependency and Indemnity Compensation (DIC).
• The program is less than half the size it was in FY2015, when VA reported 223,651 beneficiaries (down 54.0%). Veterans fell 50.9%, from 124,808 to 61,289, and surviving spouses fell 76.7%, from 81,407 to 19,007. VA changed the system it counts from twice in this period (see the caveats below), and the report doesn’t give a reason for the decline.
• Minor children are the one group that grew sharply: from 3,548 in FY2015 and 2,026 in FY2021 to 7,561 in FY2024 and 14,609 in FY2025 (7.2 times the FY2021 level). VA notes that this count includes minors receiving one-time insurance awards because they were named as the beneficiary of an insurance policy. Minors made up 8,906 of the 23,838 beneficiaries added to the program in FY2025 (37.4%).
• Most fiduciaries are appointed by VA, not by a spouse arrangement. In FY2025, 82,101 beneficiaries (79.8%) had a VA-appointed fiduciary and 20,610 (20.0%) were married beneficiaries whose spouse was appointed as a “spouse payee.” 41 were on supervised direct pay, 55 had a temporary fiduciary and 68 were awaiting an appointment.
• Misuse is investigated every year. VA fiduciary staff conducted 690 misuse investigations in FY2025 and removed and replaced 677 fiduciaries, about 6.7 investigations for every 1,000 beneficiaries. VA’s Office of Inspector General accepted 25 misuse cases, and VA reissued $5,263,886 in benefits to beneficiaries.

The VA fiduciary program, FY2015 to FY2025

Source: Family Estate Guide compilation of the Fiduciary section of the Veterans Benefits Administration’s Annual Benefits Report, fiscal years 2015 through 2025. Beneficiaries served counts anyone who received services from VA’s fiduciary program during the fiscal year. Totals also include dependent parents (26 in FY2025) and, from FY2019, beneficiaries VA lists under “Insurance” (534 in FY2025). Benefits managed is VA’s estimate of the total amount paid annually. VA’s data system changed in FY2021 and again in FY2025, so year-to-year changes may partly reflect counting differences. National figures only; VA doesn’t publish the program by state.

What the numbers mean

It’s a large program that most families never hear about until a letter arrives. About 103,000 people is a small share of the millions who receive VA benefits, but they are concentrated among the people with the most at stake: veterans with serious disabilities, older surviving spouses and children. Compensation, the largest share of the money, averages $47,659 a year for each beneficiary who receives it through a fiduciary, according to the FY2025 report. A spouse or adult child serving as fiduciary is often handling one of the household’s largest sources of income.

The drop since FY2015 shouldn’t be read as a simple trend. The number of beneficiaries fell every year from FY2016 (233,473) to FY2024 (101,155) before edging up in FY2025, with the steepest drop between FY2020 (162,779) and FY2021 (121,004), the year VA’s counts moved from the Beneficiary Fiduciary Field System to the Beneficiary and Fiduciary Directory. The FY2025 figures come from the VBA corporate database. VA’s report doesn’t explain the decline, so we can’t say how much reflects fewer people needing a fiduciary, people leaving the program through death or a new competency rating, or changes in how beneficiaries are counted.

The rise in minor children is the biggest change in the data. Minors in the program roughly doubled in each of the last two years, from 3,980 in FY2023 to 7,561 in FY2024 and 14,609 in FY2025. VA’s footnote says the count includes minors who get one-time insurance awards because they were named on an insurance policy. Under 38 CFR 13.100(a)(3), VA appoints a fiduciary for a beneficiary who hasn’t reached the age of majority, and VA withholds a lump-sum payment until a fiduciary is appointed and, when required, bonded. The report doesn’t say why the number grew, but it’s a reminder that naming a child directly as a life insurance or benefit beneficiary can put the money into a supervised account managed by someone VA approves.

Misuse is a small fraction, but it isn’t zero. 690 investigations among 102,875 beneficiaries is under 1%. Investigations peaked at 4,098 in FY2018. Each one is a family where the person trusted with a disabled veteran’s or widow’s money may have spent it on something else. The numbers support careful choices about who serves, not alarm.

How the VA fiduciary program works

The program is run by VA’s Veterans Benefits Administration through regional fiduciary hubs under 38 U.S. Code 5502 and the rules in 38 CFR Part 13.

• Who ends up in it. VA appoints a fiduciary for a beneficiary who VA has rated as unable to manage their VA benefits, who a court has found unable to manage their financial affairs, or who is a minor (38 CFR 13.100(a)). VA’s rating agency makes the competency decision, and it can’t rate someone incompetent without a clear medical opinion unless the medical evidence leaves no doubt; reasonable doubt is resolved in favor of competency (38 CFR 3.353).
• Notice and a hearing. VA must tell the beneficiary about a proposed incompetency rating and offer a hearing before deciding, unless a court has already declared the person incompetent or appointed a guardian (38 CFR 3.353(e)).
• It’s limited to VA money. According to VA, being found unable to manage VA benefits “does not affect your non-VA finances, or your right to vote or contract.” Social Security, pensions, bank accounts and the house aren’t controlled by the VA fiduciary.
• VA chooses, in a set order. VA considers, in this order: the beneficiary’s own stated preference, if they have the capacity to state one; the spouse; a relative who has care or custody of the beneficiary or their funds; any other relative; a friend willing to serve without a fee; the chief officer of the institution providing care; the bonded officer of an Indian reservation; someone appointed by a court; a paid fiduciary; and, if necessary, a temporary fiduciary (38 CFR 13.100(e)). If the beneficiary has a court-appointed guardian, VA presumes they can’t state a preference.
• A court appointment doesn’t bind VA. VA says it “is not required to recognize a court-appointed fiduciary” for paying VA benefits, and a court-appointed person ranks eighth in the order of preference.
• Background checks. Before appointing someone, VA generally interviews the proposed fiduciary, reviews a credit report pulled within 30 days and runs a criminal background check (38 CFR 13.100(f)). VA can speed this up for a spouse or for a parent of a minor child (38 CFR 13.100(g)). Certain people are barred, including people who have misused benefits and people convicted of certain crimes (38 CFR 13.130).
• A separate account. Most fiduciaries must keep the beneficiary’s VA money in a separate, federally insured account titled with both names and the fiduciary relationship. VA’s example is “Beneficiary Name, by Fiduciary Name, Federal Fiduciary.” Spouses are exempt from the separate-account rule (38 CFR 13.200). VA also tells fiduciaries never to take cash from the account by ATM or counter check.
• Fees. A fee is allowed only when no one qualified will serve for free, and VA won’t authorize a fee for a spouse, dependent or other relative. Any fee is capped at 4% of the monthly VA benefit and can’t be charged on lump sums (38 CFR 13.220).
• Bonds and accountings. A fiduciary generally must get a corporate surety bond once the VA funds due or held for the beneficiary exceed $25,000 (38 CFR 13.230). An annual accounting is required if funds under management exceed $10,000, if a fee is taken or if the beneficiary has a 100% disability rating (38 CFR 13.280).
• Supervised direct pay. Some adults can be paid directly with limited VA supervision, such as budgeting help and fund-use reports, reassessed within 12 months (38 CFR 13.110).
• Getting out. A beneficiary can ask to leave the program after being rated able to manage benefits, can ask for a different fiduciary, including an unpaid volunteer who ranks higher in the order of preference, and can be represented by a VA-accredited attorney, claims agent or veterans service organization (38 CFR 13.30). VA says you have one year from the notice letter to ask for a decision review (VA Form 20-0995, 20-0996 or 10182).

Why the VA fiduciary program is an estate planning issue

Your choice counts most while you can still state it. The first person VA considers is the one the beneficiary prefers, if the beneficiary has the capacity to say so. A veteran or surviving spouse who talks about this with family, writes it down and tells their VA-accredited representative is in a stronger position than one whose family has to step in after a crisis. Once a court appoints a guardian, VA presumes the beneficiary can no longer state a preference.

A power of attorney or trust doesn’t automatically control VA benefits. VA runs its own selection under 38 CFR 13.100, and court appointments don’t bind it. You still need a durable financial power of attorney and, for many families, a revocable living trust, because they cover everything VA doesn’t: the house, bank and retirement accounts, Social Security (which has its own representative payee system) and private pensions. The VA fiduciary and the agent under the power of attorney can be the same person, and it usually works best when they are.

A will decides where the leftover money goes. When a beneficiary with a VA fiduciary dies without a valid will and without heirs, the VA funds the fiduciary is holding go back to VA if they would otherwise pass to the state (38 CFR 13.250(a)). If the beneficiary has a valid will or heirs, the fiduciary holds the money for the estate until the will is probated or heirs are found and pays it out under state law (38 CFR 13.250(d)). The fiduciary must file a final accounting within 90 days of death in those cases. A simple will keeps saved VA benefits in the family’s plan.

The money isn’t being saved for heirs. VA’s rules say a fiduciary shouldn’t conserve VA funds “based primarily upon the interests of the beneficiary’s heirs” (38 CFR 13.210(a)). The fiduciary’s job is the beneficiary’s needs. Families who want to leave something to children or grandchildren should plan with other assets.

Think twice before naming a minor directly. A child under the age of majority who’s owed VA benefits or an insurance award gets a VA fiduciary, and the money can be used only for the child’s benefit and generally only when the people raising the child can’t provide (38 CFR 13.240). If you’re naming beneficiaries on life insurance, ask whether the policy lets you name a trust for the children or a custodian under your state’s transfers-to-minors law, and name a guardian for minor children in your will.

What to do if you or a parent receives VA benefits

1. Talk now about who should manage VA money if it’s ever needed, and write the preference down. Keep it with the will and give a copy to your VA-accredited representative.
2. Sign a durable financial power of attorney and a health care power of attorney for everything outside VA. Name the same trusted person you’d want VA to choose, plus a backup.
3. Sign a will so any VA funds a fiduciary is holding at death, and everything else, go where you want. Consider a revocable living trust if you own a home or want to avoid probate.
4. Check beneficiary designations on VA life insurance (SGLI, VGLI or VALife), other life insurance and retirement accounts. Avoid naming minor children outright; name a trust or custodian if the policy allows.
5. If VA proposes an incompetency rating, respond, ask for the hearing and get help from an accredited representative. If you disagree with the final decision, you have one year to choose a review option.
6. If you become a fiduciary, open the correctly titled account, keep every receipt, never mix the money with your own and file accountings on time. Report the beneficiary’s death to VA right away.
7. If you suspect misuse, contact the VA fiduciary hub that handles the case or VA’s Office of Inspector General. VA can reissue misused benefits.

An example

Frank, 79, is a Vietnam veteran with a 100% disability rating and early dementia. His wife died in 2024 and his son, Mark, lives nearby. Two years ago Frank signed a will leaving everything to Mark and his daughter equally, a durable power of attorney naming Mark and a short letter saying he’d want Mark to handle his VA money if he ever couldn’t. After a hospital stay, VA proposes an incompetency rating, holds the hearing Frank asks for, and rates him unable to manage his benefits. A VA field examiner meets with Frank at home, and Frank says he wants Mark. VA runs Mark’s credit and background checks and appoints him; Mark gets no fee, opens the titled account and files an annual accounting because of the 100% rating. Mark uses the power of attorney for the house and Frank’s Social Security. When Frank dies, Mark files the final accounting within 90 days, and the VA funds left in the account go to Frank’s estate and pass under his will.

Related: Veterans estate planning by state · the incapacity gap · power of attorney abuse watch · elder financial exploitation reports by state

Related research: Social Security runs its own version of this system. See who manages Social Security when a parent can’t: about 5.7 million representative payees managed roughly $81.4 billion a year in benefits in fiscal 2024, and more than 85% were family members (CRS, SSA data).

Methodology

We compiled the Fiduciary section of the Veterans Benefits Administration’s Annual Benefits Report for each fiscal year from 2015 through 2025 (fiscal years end Sept. 30), downloaded from benefits.va.gov on Oct. 27, 2026. Each report lists the number of beneficiaries served during the year by beneficiary type, the estimated annual amount of benefits managed by benefit type and the number of misuse investigations. We checked that the beneficiary types add up to VA’s published total in every year and that the benefit types add up to the published dollar total. FY2025 adds tables by fiduciary type and beneficiaries added during the year. Dollar amounts aren’t adjusted for inflation. Legal descriptions come from 38 CFR Part 13 and 38 CFR 3.353 (eCFR, current as of Oct. 23, 2026) and VA’s Fiduciary Program web pages.

What this doesn’t measure. VA’s beneficiary counts came from the Beneficiary Fiduciary Field System through FY2020, the Beneficiary and Fiduciary Directory from FY2021 to FY2024 and the VBA corporate database in FY2025, so year-to-year changes may partly reflect counting changes. The report shows 540 dependent parents in FY2020, far more than in any nearby year; we show the figure as published. Removals after misuse investigations were described as “removed based upon a finding of misuse of benefits” in the FY2015 to FY2020 reports, simply “removed” in FY2021 to FY2023 and “removed and replaced” in FY2024 and FY2025, so they aren’t fully comparable. VA doesn’t publish the program by state, by the beneficiary’s age or by the reason for the appointment, and the data doesn’t show whether beneficiaries have a will, trust or power of attorney.

Frequently asked questions

What is a VA fiduciary?

A person or organization VA appoints to receive and manage VA benefits for a beneficiary VA has rated unable to manage them, a beneficiary a court has found unable to manage their financial affairs, or a minor. The fiduciary must use the money for the beneficiary and their dependents.

How many people have a VA fiduciary?

102,875 beneficiaries were served by VA’s fiduciary program during fiscal year 2025, with about $2.77 billion a year in benefits managed, according to VA’s Annual Benefits Report.

Can I choose my own VA fiduciary?

You can state a preference, and VA considers it first if you have the capacity to state one. VA still has to approve the person after an investigation. If you have a court-appointed guardian, VA presumes you can’t state a preference.

Does a power of attorney let my child manage my VA benefits?

Not automatically. VA appoints the fiduciary under its own rules. A power of attorney still matters for everything outside VA, and the agent you named can ask to serve as your VA fiduciary.

Does a VA fiduciary get paid?

Only if no one qualified will serve for free. Spouses and relatives can’t be paid a fee, and paid fiduciaries are capped at 4% of the monthly VA benefit.

What happens to the money when the beneficiary dies?

If there’s a valid will or heirs, the fiduciary holds the remaining VA funds for the estate and distributes them under state law. If there’s no will and no heirs, the funds go back to VA instead of to the state.

Is this legal advice?

No. Talk with a VA-accredited representative or an estate planning attorney in your state.

Sources

Public-domain U.S. government sources only. Fetched 2026-10-27.

Data

• U.S. Department of Veterans Affairs, Veterans Benefits Administration, Annual Benefits Report FY2025, Pension and Fiduciary section: https://www.benefits.va.gov/REPORTS/abr/docs/2025-pension-fiduciary.pdf
• VBA Annual Benefits Report FY2024: https://www.benefits.va.gov/REPORTS/abr/docs/2024-abr.pdf
• VBA Annual Benefits Report FY2023: https://www.benefits.va.gov/REPORTS/abr/docs/2023-abr.pdf
• VBA Annual Benefits Report FY2022: https://www.benefits.va.gov/REPORTS/abr/docs/2022-abr.pdf
• VBA Annual Benefits Report FY2021: https://www.benefits.va.gov/REPORTS/abr/docs/2021-abr.pdf
• VBA Annual Benefits Report FY2020: https://www.benefits.va.gov/REPORTS/abr/docs/2020_ABR.pdf
• VBA Annual Benefits Report FY2019: https://www.benefits.va.gov/REPORTS/abr/docs/2019-abr-v2.pdf
• VBA Annual Benefits Report FY2018: https://www.benefits.va.gov/REPORTS/abr/docs/2018-abr.pdf
• VBA Annual Benefits Report FY2017: https://www.benefits.va.gov/REPORTS/abr/docs/2017_abr.pdf
• VBA Annual Benefits Report FY2016: https://www.benefits.va.gov/REPORTS/abr/docs/2016_abr.pdf
• VBA Annual Benefits Report FY2015: https://www.benefits.va.gov/REPORTS/abr/docs/2015_abr.pdf

Law and program rules

• 38 CFR Part 13, Fiduciary Activities (sections 13.30, 13.100, 13.110, 13.130, 13.200, 13.210, 13.220, 13.230, 13.240, 13.250, 13.280), eCFR: https://www.ecfr.gov/current/title-38/chapter-I/part-13
• 38 CFR 3.353, Determinations of incompetency and competency, eCFR: https://www.ecfr.gov/current/title-38/chapter-I/part-3/section-3.353
• 38 U.S. Code 5502 (payments to and supervision of fiduciaries): https://www.govinfo.gov/link/uscode/38/5502?link-type=html
• VA Fiduciary Program: https://www.benefits.va.gov/fiduciary/
• VA Fiduciary Program, information for beneficiaries: https://www.benefits.va.gov/fiduciary/beneficiary.asp
• VA Fiduciary Program, information for fiduciaries: https://www.benefits.va.gov/fiduciary/fiduciary.asp

Cite this data

You’re welcome to reuse the table with a link back to this page. The underlying government data is public.

Published October 27, 2026 by Family Estate Guide. Data vintage: VBA Annual Benefits Reports, fiscal years 2015–2025; 38 CFR Part 13 as of Oct. 23, 2026. Editorial standards.