---
kind: "section"
citation: "38 C.F.R. § 13.130"
title: "38"
number: "13.130"
heading: "Bars to serving as a fiduciary."
url: "https://uscodex.org/cfr/38/13.130"
---

# §13.130. Bars to serving as a fiduciary.

- (a) An individual or entity may not serve as a fiduciary for a VA beneficiary if the individual or entity:
  - (1) Misused or misappropriated a beneficiary's VA benefits while serving as the beneficiary's fiduciary;
  - (2) **Has been convicted of a felony offense.** For purposes of this paragraph, felony offense means a criminal offense for which the minimum period of imprisonment is 1 year or more, regardless of the actual sentence imposed or the actual time served. However, such conviction is not a bar to serving as a fiduciary for a beneficiary if all of the following conditions are met:
    - (i) The conviction occurred more than 10 years preceding the proposed date of appointment;
    - (ii) **The conviction did not involve any of the following offenses—**
      - (A) Fraud;
      - (B) Theft;
      - (C) Bribery;
      - (D) Embezzlement;
      - (E) Identity theft;
      - (F) Money laundering;
      - (G) Forgery;
      - (H) The abuse of or neglect of another person; or
      - (I) Any other financial crime;
    - (iii) There is no other person or entity who is willing and qualified to serve; and
    - (iv) The Hub Manager determines that the nature of the conviction is such that appointment of the individual poses no risk to the beneficiary and is in the beneficiary's interest.
- (b) An individual may not serve as a fiduciary for a VA beneficiary if the individual:
  - (1) Refuses or neglects to provide the authorization for VA disclosure of information prescribed in [§ 13.100(i)](/cfr/38/13.100.md?p=i);
  - (2) Is unable to manage his or her own Federal or state benefits and is in a Federal or state agency's fiduciary, representative payment, or similar program;
  - (3) Has been adjudicated by a court with jurisdiction as being unable to manage his or her own financial affairs;
  - (4) Is incarcerated in a Federal, state, local, or other penal institution or correctional facility, sentenced to home confinement, released from incarceration to a half-way house, or on house arrest or in custody in any facility awaiting trial on pending criminal charges;
  - (5) Has felony charges pending;
  - (6) Has been removed as legal guardian by a state court for misconduct;
  - (7) Is under the age of majority; or
  - (8) **Knowingly violates or refuses to comply with the regulations in this part.**

## Notes

### Authority

Authority: 38 U.S.C. 501, 5502, 5506-5510, 6101, 6106-6108, and as noted in specific sections.

### Source

Source: 83 FR 32738, July 13, 2018, unless otherwise noted.