38 USC § 6106 - Misuse of benefits by fiduciaries

---
identifier: "/us/usc/t38/s6106"
source: "usc"
legal_status: "official_legal_evidence"
title: "38 USC § 6106 - Misuse of benefits by fiduciaries"
title_number: 38
title_name: "VETERANS’ BENEFITS"
section_number: "6106"
section_name: "Misuse of benefits by fiduciaries"
chapter_number: 61
chapter_name: "PENAL AND FORFEITURE PROVISIONS"
part_number: "IV"
part_name: "GENERAL ADMINISTRATIVE PROVISIONS"
positive_law: true
currency: "119-84"
last_updated: "2026-04-21"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 108–454, title V, § 503(a)(1), Dec. 10, 2004, 118 Stat. 3619.)"
---


# § 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 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, 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. 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 or a court of competent jurisdiction, shall be considered to be for the use or benefit of such beneficiary.

**(c)** **Regulations.—** The Secretary may prescribe by regulation the meaning of the term “use and benefit” for purposes of this section.

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

## Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable with respect to any determinations by the Secretary of Veterans Affairs made after , of misuse of funds by a fiduciary, see , set out as an Effective Date of 2004 Amendment note under .