Removal of fiduciaries.

§ 13.500 Removal of fiduciaries. (a) The Hub Manager may remove a fiduciary if the Hub Manager determines that fiduciary services are no longer required for a beneficiary or removal is in the beneficiary's interest. Reasons for removal include, but are not limited to: (1) Beneficiary reasons. (i) A VA rating authority determines that the beneficiary can manage his or her own VA benefits without VA supervision or appointment of a fiduciary; (ii) The beneficiary requests appointment of a successor fiduciary under § 13.100; (iii) The beneficiary requests supervised direct payment of benefits under § 13.110; or (iv) The beneficiary dies. (2) Fiduciary reasons. (i) The fiduciary's further service is barred under § 13.130; (ii) The fiduciary fails to maintain his or her qualifications or does not adequately perform the responsibilities of a fiduciary prescribed in § 13.140; (iii) The fiduciary fails to timely submit a complete accounting as prescribed in § 13.280; (iv) VA or a court with jurisdiction determines that the fiduciary misused or misappropriated VA benefits; (v) The fiduciary fails to respond to a VA request for information within 30 days after such request is made, unless the Hub Manager grants an extension based upon good cause shown by the fiduciary; (vi) The fiduciary is unable or unwilling to provide the surety bond prescribed by § 13.230 or, if applicable, enter into a restricted withdrawal agreement; (vii) The fiduciary no longer meets the requirements for appointment under § 13.100; or (viii) The fiduciary is unable or unwilling to manage the beneficiary's benefit payments, accounts, or investments. (b) Procedures. (1) If the Hub Manager determines that it is necessary to remove a fiduciary and appoint a successor fiduciary, the Hub Manager will: (i) Provide the fiduciary and the beneficiary written notice of the removal; and (ii) Instruct the fiduciary regarding the fiduciary's responsibilities prior to transfer of funds to a successor fiduciary or provide other instructions to the fiduciary. (2) The fiduciary must: (i) Continue as fiduciary for the beneficiary until the Hub Manager provides the fiduciary with the name and address of the successor fiduciary and instructions regarding the transfer of funds to the successor fiduciary; and (ii) Not later than 30 days after transferring funds to the successor fiduciary or as otherwise instructed by the Hub Manager, provide the fiduciary hub a final accounting. (Authority: 38 U.S.C. 501, 5502, 5507, 6106)