Chances Bonding Services

What are VA Benefits Bonds

There are a lot veterans who still don’t know about VA benefit bonds, this article will help them to understand these unique bonds.

What are VA Benefits Bonds?

A guardian or fiduciary managing finances on behalf of a veteran from any military division in the United States must post a Veterans Affairs fiduciary bond. The bond guarantees that the veteran will get all of their pending benefits. Additionally, the fiduciary is primarily concerned with the well-being of the veterans and their families.

How Does a VA Benefits Bond Work?

A veteran may pursue a claim for damages against a VA benefits bond if the fiduciary fails to uphold their duty to administer the veteran’s benefits. The surety bond provider will check to assess the claim’s validity. The guarantor agrees to pay the claim and use the money to settle it, as long as all the information is correct.

Bonds act as a guarantee of one’s right to payment of legitimate claims. Any claim against the bond must be resolved by the fiduciary who received it. Alternatively, if the guarantor pays, the bondholder must still pay the interest, surety and charges.

Who Needs a VA Benefits Bond?

Anyone interested in applying for VA benefits worth more than $20,000 may do so. VA will not make any exceptions and takes the demand for surety bonds seriously. A fiduciary should obtain a bond as soon as possible to avoid unnecessary hardship for a veteran who needs these benefits because the VA will not issue significant benefits without one.

How To apply for a VA Benefits Bond?

If you want to apply for a VA benefits bond in Virginia, Maryland, completing our VA Fiduciary Bond application and submitting supporting documents are the only requirements. You must submit a letter from the Department of Veterans Affairs with a personal financial statement and credit release form to us.

For more information about VA benefits bonds, visit our VA fiduciary bonds application page or call us today.