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Title 38 — Veterans' BenefitsRelease 119-73

§6106 Misuse of benefits by fiduciaries

Title 38 › Part PART IV— - GENERAL ADMINISTRATIVE PROVISIONS › Chapter CHAPTER 61— - PENAL AND FORFEITURE PROVISIONS › § 6106

Last updated Apr 6, 2026|Official source

Summary

If the Secretary or a court finds a fiduciary misused a person's benefit for any month, the fiduciary cannot collect a fee for that month. Any fee already taken for that month will be treated as part of the misused benefit. Misuse means the fiduciary got benefit payments for a beneficiary and spent any of it on something other than the beneficiary or their dependents. Keeping fees or lawyer and court costs counts as proper only if the Secretary or a court approves. The Secretary can make rules to explain what "use and benefit" means.

Full Legal Text

Title 38, §6106

Veterans' Benefits — Source: USLM XML via OLRC

(a)A fiduciary may not collect a fee from a beneficiary for any month with respect to which the Secretary or a court of competent 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)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 administered 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)The Secretary may prescribe by regulation the meaning of the term “use and benefit” for purposes of this section.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable with respect to any determinations by the Secretary of Veterans Affairs made after Dec. 10, 2004, of misuse of funds by a fiduciary, see section 507(b)(2) of Pub. L. 108–454, set out as an

Effective Date

of 2004 Amendment note under section 5312 of this title.

Reference

Citations & Metadata

Citation

38 U.S.C. § 6106

Title 38 — Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73