Citation Nr: 21039745 Decision Date: 07/01/21 Archive Date: 07/01/21 DOCKET NO. 17-25 155 DATE: July 1, 2021 ORDER Restoration of competency status for VA benefits purposes is granted. FINDING OF FACT VA has not shown by clear and convincing medical evidence that the Veteran lacks the mental capacity to contract or manage his own financial affairs, including the disbursement of funds, without limitation. CONCLUSION OF LAW The criteria for restoration of competency for the purpose of receiving direct payment of VA benefits have been met. 38 U.S.C. §§ 5107, 5502; 38 C.F.R. §§ 3.102, 3.353. REASONS AND BASES FOR FINDING AND CONCLUSION The Veteran had active service in the United States Navy from March 1973 to February 1977. This matter comes before the Board of Veterans' Appeals (Board) from a December 2014 rating decision of a Department of Veterans Affairs (VA) Regional Office (RO). In December 2019, the Veteran testified at a videoconference Board hearing before the undersigned Veterans Law Judge. In February 2020, the Board remanded the appeal for further evidentiary development. While additional evidence has also been added from other sources since the last AOJ adjudication, as the decision below is fully favorable there is no prejudice to the Veteran in adjudicating his claim. Restoration of competency status for VA benefits purposes is granted. The Veteran asserts that he is capable of managing his VA 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). 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. The Veteran is in receipt of a 50 percent rating for bipolar disorder. In an August 2013 letter, a VA psychiatrist indicated that the Veteran was currently hospitalized at the inpatient psychiatric unit at the VA medical center due to psychiatric changes in his functioning. She noted hat he had lived in the community (Rapha Residential) for several years as he was unable to manage independently. The Veteran was diagnosed with bipolar disorder, depressed, with psychotic features. The psychiatrist stated that it was "increasingly clear" that the Veteran needed "fiduciary oversight as he may have significant repayments due to the federal government; and he is unable to make appropriate decisions for himself due to impairment in insight and judgment." An October 2018 VA mental disorders examination provided a diagnosis of schizoaffective disorder, bipolar type. The examiner noted prescriptions for Olanzapine and Lithium. The Veteran reported that the Lithium helped. He reported seeing a psychiatrist at the VAMC, and he denied any recent inpatient mental health treatment. The Veteran reported no problems with gambling, excessive spending, or substance abuse. Symptoms included suspiciousness, impaired judgment and abstract thinking, and difficulty in adapting to stressful circumstances. The examiner opined that the Veteran had occupational and social impairment with deficiencies in most areas. Regarding competency, the examiner stated that the Veteran did not present with significant cognitive impairment. However, based on his diagnosis, a review of treatment records, and the fact that the Veteran was residing in a residential home, the examiner opined that the Veteran was not competent to manage his finances. At his December 2019 Board hearing, the Veteran stated that he took care of himself at home and was making progress in his psychiatric treatment. At a December 2020 VA mental disorders examination, the Veteran reported that he was currently taking Lithium and Olanzapine. The examiner noted no history of legal problems or substance abuse. Symptoms included suspiciousness, impaired abstract thinking, and difficulty adapting to stressful circumstances. The examiner noted that the Veteran did not evince any disturbances in thought, speech, memory, concentration, or behavior. His insight and judgment were estimated as fair. The Veteran did not seem to report historical or current symptoms of impaired functioning severe enough to deem him incompetent to manage his financial affairs. Consequently, the examiner opined that the Veteran was capable of managing his financial affairs. In light of the foregoing, it is not shown by clear and convincing medical evidence that the Veteran currently lacks the mental capacity to contract or manage his own affairs, including the disbursement of funds, without limitation. Although the Veteran previously appeared to experience difficulty in managing his psychiatric disability, more recent evidence, including his testimony and the December 2020 VA examination report, reflect that the Veteran's psychiatric disability is controlled by medication and other treatment. Considering the presumption in favor of competency, the Board finds that the Veteran is competent handle the disbursement of VA funds. 38 U.S.C. § 5107 (b); 38 C.F.R. § 3.102. Evan M. Deichert 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.