38 CFR 13.58 - Legal custodian.
(a) Authority. The Veterans Service Center Manager is authorized to make determinations as to the person or legal entity to be appointed legal custodian to receive Department of Veterans Affairs payments on behalf of a beneficiary who is incompetent or under legal disability by reason of minority or court action. In the absence of special circumstances, the person or legal entity to be appointed legal custodian will be the person or legal entity caring for and/or having custody of the beneficiary or the beneficiary's estate.
(b) Payment to. Department of Veterans Affairs benefits may be paid to a legal custodian subject to the following conditions:
(1) The Veterans Service Center Manager has determined that it would be in the best interests of the beneficiary to appoint a legal custodian.
(2) The proposed legal custodian is qualified to administer the benefits payable and will agree to:
(i) Apply the benefits paid for the best interests of the beneficiary,
(ii) Invest surplus funds as provided by Department of Veterans Affairs regulations,
(iii) Furnish, upon request, evidence of compliance with agreement as to usage and investment of Department of Veterans Affairs benefits, and
(iv) Inform the Veterans Service Center Manager of any change in the beneficiary's estate or any other circumstances that might affect entitlement or the manner in which payments are to be made.