§6107 — Title 38 Veterans' Benefits | U.S. Code

Summary

When a fiduciary takes all or part of a person’s benefit that was paid to the fiduciary, the Secretary must pay the same amount to the beneficiary or the beneficiary’s successor fiduciary. The Secretary will try in good faith to recover the money from the fiduciary who misused it. If the Secretary gets money back, it must be sent quickly to the beneficiary or successor fiduciary, unless that amount was already paid. If the beneficiary dies before the payment, the Secretary must pay whoever is entitled under section 5121, but not to the fiduciary who stole the money. Payments cannot exceed the total amount misused. The Secretary will set rules and timing to decide if misuse was caused by Secretary negligence, but cannot delay repaying while that decision is pending and does not have to make that decision in every case.

Title 38, §6107

Veterans' Benefits — Source: USLM XML via OLRC

(a)(1)In any case in which a fiduciary misuses all or part of an individual’s benefit paid to such fiduciary, the Secretary shall pay to the beneficiary or the beneficiary’s successor fiduciary an amount equal to the amount of such benefit so misused.

(2)In any case in which the Secretary reissues a benefit payment (in whole or in part) under paragraph (1), the Secretary shall make a good faith effort to obtain recoupment from the fiduciary to whom the payment was originally made.

(3)In any case in which the Secretary obtains recoupment from a fiduciary who has misused benefits, the Secretary shall promptly remit payment of the recouped amounts to the beneficiary or the beneficiary’s successor fiduciary, as the case may be, to the extent that such amounts have not been paid under paragraph (1).

(b)(1)If a beneficiary described in subsection (a)(1) predeceases a payment under such subsection, the Secretary shall pay such amount, subject to paragraph (2), to an individual or entity in accordance with section 5121 of this title.

(2)The Secretary may not make a payment under this subsection to a fiduciary who misused benefits of the beneficiary.

(c)The total of the amounts paid to a beneficiary or the beneficiary’s successor fiduciary under this section may not exceed the total benefit amount misused by the fiduciary with respect to that beneficiary.

(d)(1)The Secretary shall establish methods and timing with respect to determining whether an instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary, is the result of negligence by the Secretary.

(2)The Secretary may not withhold the reissuing of a benefit payment under subsection (a)(1) by reason of a pending determination under paragraph (1).

(3)The Secretary is not required to make a determination under paragraph (1) for each instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2025—Pub. L. 119–56 amended section generally. Prior to amendment, section related to reissuance of benefits after misuse of benefits by a fiduciary in cases of negligent failure of the Secretary to investigate or monitor the fiduciary or in other cases. 2024—Subsecs. (c), (d). Pub. L. 118–114, § 2(1), (2), added subsec. (c) and redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 118–114, § 2(1), (3), redesignated subsec. (d) as (e) and substituted “this section” for “subsection (a) or (b)”. 2021—Subsec. (b)(1). Pub. L. 116–315, § 7005(a)(1), substituted “In any case not covered by subsection (a) in which a fiduciary” for “In any case in which a fiduciary described in paragraph (2)”. Subsec. (b)(2), (3). Pub. L. 116–315, § 7005(a)(2), (3), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “Paragraph (1) applies to a fiduciary that— “(A) is not an individual; or “(B) is an individual who, for any month during a period when misuse occurs, serves 10 or more individuals who are beneficiaries under this title.”

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 Amendment Pub. L. 116–315, title VII, § 7005(b), Jan. 5, 2021, 134 Stat. 5059, provided that: “The

Amendments

made by subsection (a) [amending this section] shall apply with respect to any determination by the Secretary of Veterans Affairs made on or after the date of the enactment of this Act [Jan. 5, 2021] regarding the misuse of benefits by a fiduciary.”

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.

§6107 Reissuance of benefits

Summary

Title 38, §6107

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Effective Date

Effective Date

Citations & Metadata