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Title 38 — Veterans' BenefitsRelease 119-73not60

§6106 Misuse of Benefits by Fiduciaries

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

Last updated Apr 5, 2026|Official source

Summary

A fiduciary cannot keep a fee for any month when the Secretary or a court finds the fiduciary used any of a beneficiary’s payments for something other than the beneficiary. That fee is treated as part of the money misused. Misuse means spending benefit payments for anyone other than the beneficiary or their dependents. Fees or lawyer costs that the Secretary or a court allows count as for the beneficiary. The Secretary can make rules to define “use and benefit.”

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 5, 2026

Release point: 119-73not60