Citation Nr: A21020615 Decision Date: 12/29/21 Archive Date: 12/29/21 DOCKET NO. 200528-88363 DATE: December 29, 2021 ORDER The claimant is not competent to handle disbursement of Department of Veterans Affairs (VA) funds; the appeal is denied. FINDING OF FACT The Veteran lacks the mental capacity to contract or manage personal affairs, including the disbursement of funds, without limitation. CONCLUSION OF LAW It is shown by clear and convincing evidence that the Veteran is not competent to handle disbursement of VA funds. 38 U.S.C. §§ 5103, 5103A, 5502 (2018); 38 C.F.R. §§ 3.159, 3.353 (2020). REASONS AND BASES FOR FINDING AND CONCLUSION The Veteran served on active duty in the Marine Corps from July 1972 to July 1975 and from August 1975 to August 1977, and in the Army from December 1980 to June 1981. This matter comes before the Board of Veterans' Appeals (Board) on appeal of a May 2020 rating decision of a VA Regional Office (RO). In May 2020, the Veteran filed a VA Form 10182 Notice of Disagreement with the Board and elected Direct Review of the RO decision. Therefore, the Board may only consider the evidence of record at the time of the agency of original jurisdiction (AOJ) decision on appeal. 38 C.F.R. § 20.301. The claimant is not competent to handle disbursement of funds. Under VA regulations, a mentally incompetent person is one who, because of injury or disease, lacks the mental capacity to contract or to manage his or her own affairs, including disbursement of funds without limitation. 38 C.F.R. § 3.353 (a) (2020). Unless the medical evidence is clear, convincing, and leaves no doubt as to the person's incompetency, the rating agency will not make a decision of incompetency without a definite expression regarding the question by the responsible medical authorities. Determinations as to incompetency should be based upon all evidence of record, and there should be a consistent relationship between the percentage of disability, facts relating to commitment or hospitalization, and the holding of incompetency. 38 C.F.R. § 3.353 (c). There is a presumption in favor of competency, and where reasonable doubt arises regarding a beneficiary's mental capacity to contract or to manage affairs, including the disbursement of funds without limitation, such doubt will be resolved in the veteran's favor. In this case, the Veteran is service-connected for schizophrenia, which is rated as 100 percent disabling. In a January 2020 letter, the Acting Mental Health Director of the Veteran's VA medical center (VAMC) stated that the Veteran should be rated incompetent for VA purposes. The Director stated that although the Veteran received a monthly Haldol shot for his schizophrenia, he will decompensate "every once in a while." The Director stated that in the most recent decompensation, the Veteran was talking to scammers who called him, and he gave out his social security number, address, bank account, routing number, etcetera. The Veteran also mailed out a $10,000 money order from his savings account. The Director stated that the Veteran's sister is considering moving him in with her and becoming his fiduciary and power of attorney, as he is not making the right decisions. The Director further stated that "time is of the essence here as if this continues, he will be soon homeless, and helpless on the street." A February 2020 mental health outpatient note indicated that the examiner asked the Veteran if the scammers kept calling him. The Veteran stated that he was not going to do anything, and it did not bother him. The clinician stated that "we are concerned with his decision making capabilities, and losing more money." After the visit, the clinician talked to the Veteran's sister, who explained that the Veteran's bank has already closed an account and opened two other accounts due to "all these check problems." The Veteran's sister showed various checks, including one for $3 million. A February 2020 VA social work assessment noted that the Veteran's sister reported that the Veteran continued to be scammed and that there have been people who have even come to his home to take him places. His caregivers have quit due to feeling unsafe. (Continued on the next page) Based on the foregoing, the Board finds that the evidence of record clearly and convincingly shows that the Veteran is not currently capable of managing his VA funds. As noted above, the Acting Director of Mental Health services at the Veteran's VAMC definitively opined that the Veteran is unable to manage his financial affairs. This opinion is consistent with the evidence of record, which shows that the Veteran's psychiatric impairment has interfered with his ability to manage his finances. As the evidence clearly and convincingly shows that the Veteran is unable to manage his financial affairs at this time, the Board finds that the Veteran is not competent to handle disbursement of VA funds. The appeal is denied. 38 U.S.C. § 5107 (b) (2018); 38 C.F.R. §§ 3.102, 3.353 (2020). Rebecca N. Poulson Veterans Law Judge Board of Veterans' Appeals Attorney for the Board Roya Bahrami, Counsel The Board's decision in this case is binding only with respect to the instant matter decided. This decision is not precedential and does not establish VA policies or interpretations of general applicability. 38 C.F.R. § 20.1303.