---
kind: "section"
citation: "38 U.S.C. § 6106"
title: "38"
title_heading: "Veterans’ Benefits"
number: "6106"
heading: "Misuse of benefits by fiduciaries"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/6106"
units:
  - "Part IV — General Administrative Provisions"
  - "Chapter 61 — Penal and Forfeiture Provisions"
---

# §6106. Misuse of benefits by fiduciaries

- (a) **Fee Forfeiture in Case of Benefit Misuse by Fiduciaries.—** A fiduciary may not collect a fee from a beneficiary for any month with respect to which the [Secretary](/usc/38/101.md?p=1) 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) **Misuse of Benefits Defined.—** 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](/usc/38/101.md?p=1), 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](/usc/38/3452.md?p=d). 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](/usc/38/101.md?p=1) or a court of competent jurisdiction, shall be considered to be for the use or benefit of such beneficiary.
- (c) **Regulations.—** The [Secretary](/usc/38/101.md?p=1) may prescribe by regulation the meaning of the term “use and benefit” for purposes of this section.

## Source credit

(Added Pub. L. 108–454, title V, § 503(a)(1), Dec. 10, 2004, 118 Stat. 3619.)

## Notes

### 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.