---
kind: "section"
citation: "38 C.F.R. § 13.220"
title: "38"
number: "13.220"
heading: "Fiduciary fees."
url: "https://uscodex.org/cfr/38/13.220"
---

# §13.220. Fiduciary fees.

- (a) **Authority.** The Hub Manager with jurisdiction over a fiduciary appointment may determine whether a fee is necessary to obtain the services of a fiduciary. A fee is necessary only if no other person or entity is qualified and willing to serve without a fee and the beneficiary's interests would be served by the appointment of a qualified paid fiduciary. The Hub Manager will not authorize a fee if the fiduciary:
  - (1) Is a spouse, dependent, or other relative of the beneficiary; or
  - (2) Will receive any other form of payment in connection with providing fiduciary services for the beneficiary.
- (b) **Limitation on fees.** The Hub Manager will authorize a fiduciary to whom a fee is payable under [paragraph (a)](#a) of this section to deduct from the beneficiary's account a reasonable monthly fee for fiduciary services rendered.
  - (1) For purposes of this section, reasonable monthly fee means a monetary amount that is authorized by the Hub Manager and does not exceed 4 percent of the monthly VA benefit paid to the fiduciary on behalf of the beneficiary for a month in which the fiduciary is eligible under [paragraph (b)(2)](#b-2) of this section to collect a fee.
  - (2) A monthly fee may be collected for any month during which the fiduciary:
    - (i) Provides fiduciary services on behalf of the beneficiary,
    - (ii) Receives a recurring VA benefit payment for the beneficiary, and
    - (iii) **Is authorized by the Hub Manager to receive a fee for fiduciary services.**
  - (3) Fees may not be computed based upon:
    - (i) Any one-time, retroactive, or lump-sum payment made to the fiduciary on behalf of the beneficiary;
    - (ii) Any funds conserved by the fiduciary for the beneficiary in the beneficiary's account under [§ 13.200](/cfr/38/13.200.md) or invested by the fiduciary for the beneficiary under [§ 13.210](/cfr/38/13.210.md), to include any interest income and return on investment derived from any account; or
    - (iii) Any funds transferred to the fiduciary by a prior fiduciary for the beneficiary, or from the personal funds of patients or any other source.
  - (4) The Hub Manager will not authorize a fee for any month for which:
    - (i) VA or a court with jurisdiction determines that the fiduciary misused or misappropriated benefits, or
    - (ii) **The beneficiary does not receive a VA benefit payment.** However, the Hub Manager may authorize a fee for a month in which the beneficiary did not receive a benefit payment if VA later issues benefits for that month and the fiduciary:
      - (A) Receives VA approval to collect a fee for the month for which payment was made,
      - (B) Provided fiduciary services during the month for which payment was made, and
      - (C) **Was the beneficiary's fiduciary when VA made the retroactive payment.**

## 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.