VA Fiduciary Bond Under 38 CFR § 13.230
If you’re appointed by the VA to manage a veteran’s benefits and the VA funds under your control exceed $25,000, you must furnish a corporate surety bond within 60 days — payable not to a probate judge, but to the Secretary of Veterans Affairs. The bond amount tracks the VA funds you manage, not the veteran’s full estate, and it’s adjusted whenever that balance moves more than 20%.
This is a different animal from the state guardianship or conservatorship bond most probate content covers. VA runs its own appointment and bonding system through regional Fiduciary Hubs — separate from, and sometimes layered on top of, whatever a state court already requires.
- Bond is payable to the VA Secretary — a state probate bond usually does not satisfy this on its own
- Spouses of the beneficiary, banks with trust powers, and existing sufficient state-court bonds are exempt
- Bond amount rides with the VA fund balance — not a one-time, fixed figure
- Who requires it: The Secretary of Veterans Affairs, through the VA Fiduciary Hub (38 CFR § 13.230).
- Amount: Equal to the VA funds under management, adjusted whenever that value moves more than 20%. It is required when VA benefit funds exceed $25,000.
- Typical cost (estimate): about 0.5%–1% of the bond amount annually. The surety sets the final price.
- Timing: Same-day submission; most quotes within one business day.
Official Federal (38 CFR § 13.230) Requirements
"Within 60 days of appointment, the fiduciary must furnish to the fiduciary hub with jurisdiction a corporate surety bond conditioned on faithful discharge of all the responsibilities of a fiduciary, if the VA benefit funds that are due and to be paid for the beneficiary will exceed $25,000 at the time of appointment. The bond must contain a statement that the bond is payable to the Secretary of Veterans Affairs."eCFR — Code of Federal Regulations, Title 38, Part 13 • 38 CFR § 13.230
Three Ways a Veteran’s Fiduciary Gets Bonded
Whether you need this VA bond, a state bond, or both depends entirely on who appointed you — VA’s own Fiduciary Hub, or a probate/guardianship court.
VA Fiduciary Hub vs. Court-Appointed Dual Role vs. State Guardianship Only
Verified against 38 CFR §§ 13.230 and 14.709, August 2026
| Bonding Track | Who Appoints | Governing Rule | Triggered By | Bond Amount |
|---|---|---|---|---|
| VA Fiduciary Hub (administrative) | VA's Pension & Fiduciary Service — no court involved | 38 CFR § 13.230 | VA benefit funds under management exceed $25,000 | Equal to VA funds under management; adjusted whenever that value moves more than 20% |
| State court + VA dual role | Probate or guardianship court, then confirmed to VA | 38 CFR § 14.709 (VA Regional Counsel policy) + state probate code | A state court already appointed a guardian/conservator who also controls VA funds | Set through the state court process, sized to the personal estate derived from VA benefits plus anticipated VA income for the accounting period |
| State guardianship only | Probate or guardianship court | State probate code (e.g. state guardianship bond) | Ward's assets requiring a guardian bond do not include VA benefits, or VA funds stay under $25,000 | Set entirely by state formula — no federal bond involved |
Where a state-court bond already covers both VA and non-VA funds at a sufficient level, 38 CFR § 13.230(c) exempts the fiduciary from a separate Hub bond — the tracks don't stack.
38 CFR §§ 13.230, 14.709 — eCFR, verified August 2026
Managing a ward’s full estate, not just VA benefits? See our guardianship bond guide for the state-side rules, or the probate bond cost by state reference for how each state sets its own multiplier.
How VA Sizes the Bond — and Keeps It Sized
Unlike a state probate multiplier (1x, 1.5x, or 2x liquid assets), the VA formula is a straight 1:1 match to the funds you actually control — and it doesn’t stay fixed for the life of the appointment.
VA Fiduciary Bond Amount
38 CFR § 13.230 — eCFR, verified August 2026
The bond amount isn’t a one-time number
Whenever VA funds under your management rise or fall by more than 20% — a second retroactive award posts, a large medical or care expense draws the balance down, the beneficiary’s monthly rate changes — you have 60 days from that change to furnish proof of an adjusted bond to your Fiduciary Hub. Most sureties handle this with a bond rider rather than a brand-new policy, but you have to initiate it; VA doesn’t automatically re-bill you.
Who Is Exempt From the VA Fiduciary Bond
Five categories carved out by 38 CFR § 13.230 — the Hub Manager can still override in specific cases
Trust Companies & Banks
Institutions holding trust powers are treated as self-bonded, the same logic that exempts corporate trustees on the probate side.
The Beneficiary’s Spouse
A spouse serving as fiduciary is exempt outright — no bond required regardless of the VA fund balance.
Territories With a Withdrawal Agreement
Fiduciaries in Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, the Northern Mariana Islands, or the Philippines who sign a restricted withdrawal agreement with an approved depository.
Sufficient State-Court Bond
A court-appointed fiduciary who already holds a state-court bond covering both VA and non-VA funds at a sufficient level.
Insured State Agencies
A state agency serving as fiduciary that already carries state-mandated liability insurance or a blanket bond covering the funds.
Hub Manager Override
Even in an exempt category, the Hub Manager may still require a bond for a marginal credit report or a misdemeanor criminal conviction for a disqualifying offense — the two circumstances the regulation names.
Know your VA funds figure? Get an exact bond quote.
Tell us the funds under management and how you were appointed — we’ll match it to the right corporate surety.
Get Your VA Fiduciary Bond QuoteThe Bond Isn’t the Accounting — But You’ll Need Both
Under 38 CFR § 13.280, a VA fiduciary owes an annual accounting to the Hub when any of the following apply: VA benefit funds under management exceed $10,000 — a lower bar than the $25,000 bond trigger; you deducted an authorized fiduciary fee from the account; the beneficiary is rated 100% disabled; or the Hub Manager simply determines one is necessary. The accounting is due on VA’s prescribed form no later than 30 days after the accounting period closes, and a corrected or supplemental accounting is due within 14 days of VA flagging a discrepancy.
Current proof of your surety bond has to accompany that accounting. A lapsed or unadjusted bond — one that hasn’t kept pace with a fund balance that grew more than 20% — can hold up an otherwise complete accounting even when every dollar is accounted for correctly.
Inside the VA Fiduciary Hub Appointment Process
A federal program run entirely inside VA’s Pension & Fiduciary Service — most families never see a courtroom.
Incompetency Notice
VA notifies the beneficiary of a proposed incompetency rating and holds a minimum 60-day due process period to submit evidence or request a hearing.
Field Examination
A Hub Manager orders a field visit to decide between Supervised Direct Payment (SDP) — the beneficiary keeps managing funds under temporary VA oversight — or appointing a fiduciary.
Fiduciary Vetting
Face-to-face interview, identity verification, credit report, criminal background check, and character witness interviews — a felony conviction or prior VA fund misuse is disqualifying.
Bond & Certification
Certification under 38 U.S.C. § 5507(a) requires the fitness investigation above, a finding it serves the beneficiary’s interest, and the bond if funds exceed $25,000.
Source: Congressional Research Service, “The VA Fiduciary Program: An Overview,” June 2025 — figures reflect FY2024, the most recent full year reported.
What a VA Fiduciary Bond Actually Costs
Premium runs 0.5%–1% of the bond amount annually for a fiduciary with good credit — in line with the fiduciary-bond rate band that applies across probate and VA lines, because in both cases a court or federal agency is doing ongoing oversight the surety would otherwise have to pay for itself. On a $50,000 VA fund balance, that’s roughly $250–$500 a year. On $300,000, roughly $1,500–$3,000 a year.
Credit-challenged applicants (sub-600) typically see 2%–5% instead, and carriers may ask for a co-signer or partial collateral on larger balances. Because premium is billed against a bond that’s re-sized whenever funds move more than 20%, a well-managed estate that’s being spent down for the veteran’s care — as intended — sees its renewal premium shrink along with it, the same lifecycle economics as a probate bond.
Premium is typically paid from the VA funds under management as an administration expense, subject to Hub Manager approval — the same way a probate court approves bond premium as an expense of the estate.
Frequently Asked Questions
Does a VA fiduciary bond replace my state guardianship bond?
What exactly counts toward the $25,000 VA fiduciary bond threshold?
Who is exempt from the VA fiduciary bond requirement?
What happens if the VA funds I manage grow or shrink after the bond is set?
Is the VA fiduciary bond the same thing as my annual accounting?
Can a family member serving as VA fiduciary get bonded with bad credit?
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
Appointed a VA Fiduciary and Need a Bond?
We’ll match the bond amount to your VA fund balance and get it filed inside the 60-day window.
Prefer to talk it through first? Call 1-844-810-BOND (2663).