Skip to Content

Factsheet LEG01(b) - Arrangements for Other People to Receive Payments on Your Behalf

Purpose

This Factsheet provides information on arrangements that can be made for another person ("third party") to receive pension, veteran payment and allowance payments on behalf of a pensioner.

How can a third party be appointed to receive VEA payments?

A pension, payment or allowance payable to a veteran under the Veterans' Entitlements Act 1986 (VEA) can be paid to a third party in two circumstances:

  • the appointment of an agent through the process specified in the VEA; or
  • the appointment of a trustee through the process specified in the VEA.

How is an agent appointed under the VEA?

The VEA contains a specific power and process for an agent to be appointed and recognised for the purposes of receiving pension, payments and allowances paid under the VEA. This process is separate and distinct from that which applies to third parties appointed simply for the purpose of seeking and providing information for the client (see Factsheet LEG01(a) Arrangements for Other People to Act on Your Behalf).

To have an agent appointed under the VEA for the purposes of receiving payments of pension, payments and allowances, a written request must be made by the client, specifying to whom his or her pension payments are to be paid.

The client will need to complete form D2693 Application for Appointment of an Agent and return it to DVA as per the instructions on the form.

What are an agent's obligations?

The agent is obliged to pay the pension or allowance to the client or to manage the pension or allowance in accordance with the client's wishes.

Even though the pension or venteran payment is paid to an agent, the payment is, for all purposes, taken to be a payment of the pension to the client. Both the client and the agent are obliged to notify DVA of changes to the client's circumstances. A client's obligations under s.54, 54A, 54AA and 127 of the VEA apply to their agent, for more information see Factsheet IS137 The things you need to tell us about.

How is a trustee appointed under the VEA?

A trustee is usually appointed when a client is incapable of managing their financial affairs due to physcial, mental or other from of disability. A trustee can also be appointed in cases where the client cannot responsibly manage their money.

The VEA contains a specific power and process for a trustee to be appointed and recognised for the purposes of that Act. This process is separate and distinct from that which may apply to trustees, guardians and administrators appointed under State and Territory law.

Under the VEA, a trustee can only be appointed to receive pension or veteran payments where the Commission is satisfied that it is desirable due to the age, infirmity, ill health or improvidence (i.e. inability to responsibly handle money) of the client.

To request the appointment of a trustee under the VEA on these grounds, a written request must be forwarded to DVA and must include two professional certificates showing that the client is incapable of managing their own affairs. At least one of these reports must be from a suitably qualified medical practitioner and the other must be from another person with a relevant qualification, such as another medical practioner or a social worker.

A statement signed by the trustee accepting the trusteeship and acknowledging the responsibilities of being a trustee must also be provided.

In addition, the proposed trustee will need to complete form D2505 Application for Appointment of a Trustee and return it to DVA as per the instructions on the form.

What are the trustee's rights and obligations under the VEA?

A trustee:

  • has the legal right to receive and retain pension or veteran payments
  • does not have to follow any directions from the client on how the money is managed
  • must invest money in accordance with relevant State or Territory legislation dealing with the investment of monies held on trust
  • must be acquainted with, and obey the terms and conditions of the trust
  • is obliged to manage the trust so that there is no conflict of interest between the client's own interests and those of the trustee, .i.e. trustee must not profit from the trust
  • has a duty to manage the pension or veteran payment moneys for the client's benefit
  • must keep accounts for the trust and produce them at the request of the client or DVA
  • must advise DVA within the prescribed period if the client dies, marries, is divorced, or if there is any other change that may affect his or her pension or veteran payment
  • cannot delegate any of the powers or responsibilities of the trust to another person
  • must keep trust money in a separate account from his or her own money; and
  • must be familiar with the law that covers the administration of trusts in his or her State or Territory.

Are there similar agent and trustee arrangements available under the MRCA and DRCA?

The Military Rehabilitation and Compensation Act 2004 (MRCA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) contain provisions that allow compensation payments to be held on trust for persons with a “legal disability” or, in the case of MRCA, who are under 18.

Planning Ahead - A guide to putting your affairs in order

Planning Ahead is a publication designed to help veterans and their families prepare for bereavement. Planning Ahead is available from DVA offices or from the Planning Ahead kit page of the DVA website at www.dva.gov.au/aboutDVA/publications/health/Pages/Planning_Ahead_Kit.aspx

More Information

DVA General Enquiries

Phone: 1800 555 254 *

Email: GeneralEnquiries@dva.gov.au

DVA Website: www.dva.gov.au

Factsheet Website: www.dva.gov.au/factsheets

* Calls from mobile phones and pay phones may incur additional charges.

Related Factsheets

Related Forms

Disclaimer

The information contained in this Factsheet is general in nature and does not take into account individual circumstances. You should not make important decisions, such as those that affect your financial or lifestyle position on the basis of information contained in this Factsheet. Where you are required to lodge a written claim for a benefit, you must take full responsibility for your decisions prior to the written claim being determined. You should seek confirmation in writing of any oral advice you receive from DVA.

Average: 3.2 (5 votes)
9 May 2018