A power of attorney lets someone you trust act for you if you get sick or hurt. For veteran families there is a catch that surprises many people: a power of attorney does not give anyone control over VA benefit payments. The Consumer Financial Protection Bureau (CFPB) says an agent "cannot manage" a person's "Social Security or VA benefits unless you get a separate appointment from the government agency as, for example, a representative payee or VA fiduciary." This guide explains the main types of powers of attorney, VA's own advance directive form, and how VA's fiduciary program fits in.
Key Takeaways
- A durable financial power of attorney names an agent to handle money and property. Rules are set by state law.
- A health care power of attorney names someone to make medical decisions if you cannot. VA offers its own form for this, VA Form 10-0137.
- VA says it "recognizes all types of legal advance directives, including VA, state, and Department of Defense (DoD) advance directives."
- A financial power of attorney does not let an agent manage VA benefits. VA appoints a fiduciary for that.
- An agent's authority under a power of attorney ends when the person dies.
- An estate attorney in your state can confirm how powers of attorney work where you live.
Table of Contents
- The Durable Financial Power of Attorney
- The Health Care Power of Attorney and Advance Directive
- Why a Power of Attorney Does Not Cover VA Benefits
- How VA's Fiduciary Program Works
- Putting the Pieces Together
- Ask the Navigator
- Frequently Asked Questions
- Sources
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The Durable Financial Power of Attorney
The CFPB's guide for agents in Florida describes a durable power of attorney as "a legal document" that gives an agent "legal authority to make decisions about her money or property so that you can make decisions for her if she is sick or injured." The CFPB calls the person given this authority the agent.
When it takes effect depends on your state
Each state writes its own power of attorney law. In Florida, for example, the CFPB guide says that if the document was signed "on or after October 1, 2011, your legal authority to act for her took effect immediately." That is one state's rule. Other states set their own rules on when authority begins. An estate attorney can explain your state's rule.
The agent's basic duties
The CFPB, using an example person named Martina, lists four basic duties for an agent:
- "Act only in Martina's best interest"
- "Manage Martina's money and property carefully"
- "Keep Martina's money and property separate"
- "Keep good records"
When it ends
A power of attorney does not last after death. The CFPB says "your authority to act as Martina's agent ends when she dies." It advises agents to "promptly notify her bank or other businesses" they dealt with. After death, an executor or trustee takes over, depending on the plan.
The Health Care Power of Attorney and Advance Directive
Money and medical care are handled by different documents. A financial power of attorney does not cover medical decisions.
VA Form 10-0137
VA's form is called the "VA Advance Directive: Durable Power of Attorney for Health Care and Living Will." VA says it lets you "give specific people permission to make health care decisions for you, and to let VA health care providers know your wishes for medical, mental health, long-term, and other types of care." The form is available from the VA.gov forms page.
The two parts of the form
VA's companion guide, VA Form 10-0137A, explains both parts:
- Durable Power of Attorney for Health Care: "A form that you can use to name any adult as your Health Care Agent. This person will have the legal right to make health care decisions for you if you are not able to do so."
- Living Will: "A form you can use to state your preferences about treatments you would or wouldn't want if you cannot make treatment decisions yourself."
State forms count too
VA says it "recognizes all types of legal advance directives, including VA, state, and Department of Defense (DoD) advance directives." VA's guide also advises: "Give a copy to your VA health care facility and to your Health Care Agent."
If no one is named
VA's guide lists who may act as a surrogate if you have not named an agent. The order is legal guardian, spouse, adult child, parent, sibling, grandparent, grandchild, then close friend. Naming an agent yourself lets you choose instead.
Why a Power of Attorney Does Not Cover VA Benefits
This is the point that catches many families off guard. A spouse or adult child may hold a valid power of attorney and still have no say over VA payments.
What the CFPB says
The CFPB's Florida agent guide states: "As agent, you cannot manage Martina's government benefits such as Social Security or VA benefits unless you get a separate appointment from the government agency as, for example, a representative payee or VA fiduciary." The CFPB's guide for VA fiduciaries in Arizona says the same thing in broader terms: "Even if you are Roberto's agent under a durable power of attorney or a trust, or if you are his conservator, you don't have legal authority to manage his federal benefits checks."
VA uses its own system
For VA benefit payments, VA has its own fiduciary program. VA explains: "A fiduciary is a person or organization we trust to help you manage your VA benefit payments."
How VA's Fiduciary Program Works
VA's fiduciary pages explain who the program helps and what a fiduciary does.
Who it is for
VA says it may appoint a fiduciary to protect the financial interests of Veterans, surviving spouses, dependent parents, and minor or helpless children who are entitled to VA benefits. VA lists reasons such as "an injury or disease that prevents you from being able to manage your finances," age-related limits, being a minor, or a court deciding that "you no longer manage your finances yourself."
How VA decides
VA's regulation, 38 CFR 3.353, defines a mentally incompetent person as one "who because of injury or disease lacks the mental capacity to contract or to manage his or her own affairs, including disbursement of funds without limitation." VA rating agencies make this decision for VA purposes.
What a fiduciary does
VA lists duties that include "paying your bills on time" and "establishing a properly titled bank account that shows the money belongs to you and is managed by the fiduciary." VA also says "a fiduciary helps manage VA benefits only. A fiduciary doesn't manage your non-VA finances." That is why many families need both: a fiduciary for VA money, and an agent or trustee for everything else.
Putting the Pieces Together
These steps help a veteran family organize documents before meeting with an attorney or VA-accredited representative.
- Choose a health care agent. Talk with the person first about your wishes.
- Complete an advance directive. Use VA Form 10-0137 or a valid state form.
- Share copies. VA advises giving copies to your VA health care facility and your Health Care Agent.
- Ask an estate attorney about a durable financial power of attorney. Confirm when it takes effect in your state.
- Understand the VA fiduciary process. Know that VA, not a power of attorney, decides who manages VA payments.
- Coordinate with any trust. A trustee handles only property in the trust.
- Review documents after big life changes. Marriage, divorce, a move or a death in the family are common triggers.
For care planning, see our guides on Aid and Attendance and VA nursing home and long-term care benefits.
Ask the Navigator
Not sure which documents your family has in place? Ask AVOY Veteran Navigator AI™ a question at avoyvet.com, and take the free Veteran Legacy Checklist to see what to discuss with your attorney or VSO.
Frequently Asked Questions
Can I use my financial power of attorney to manage my father's VA compensation?
No. The CFPB says an agent cannot manage VA benefits without a separate appointment, such as VA fiduciary. VA appoints fiduciaries through its fiduciary program.
Does VA accept my state's advance directive?
Yes. VA says it "recognizes all types of legal advance directives, including VA, state, and Department of Defense (DoD) advance directives."
Who can be my health care agent on VA Form 10-0137?
VA's guide says you can "name any adult as your Health Care Agent."
Does a power of attorney still work after death?
No. The CFPB says an agent's authority "ends when she dies." After death, the estate is handled through the will, trust or probate process.
Will a VA fiduciary also handle my home and savings?
No. VA says "a fiduciary helps manage VA benefits only" and "doesn't manage your non-VA finances."
Sources
- Managing Someone Else's Money: Help for Agents Under a Durable Power of Attorney in Florida — Consumer Financial Protection Bureau
- Managing Someone Else's Money: Help for Representative Payees and VA Fiduciaries in Arizona — Consumer Financial Protection Bureau
- About VA Form 10-0137 — VA.gov
- What You Should Know About Advance Directives (VA Form 10-0137A) — VA.gov
- Fiduciary Program — VA.gov
- Fiduciary Help — VA.gov
- 38 CFR 3.353 Determinations of incompetency and competency — eCFR
Educational information only — not legal, tax, financial, or medical advice, and not affiliated with the U.S. Department of Veterans Affairs. Estate and probate rules vary by state; an estate attorney in your state can confirm what applies. For VA benefits help, contact a VA-accredited VSO (often free), claims agent, or attorney.
