CHAPTER 19. DEPARTMENT OF VETERANS AFFAIRS
IC 29-1-19
Chapter 19. Department of Veterans Affairs
IC 29-1-19-1
Definitions
Sec. 1. As used in this chapter:
"Person" means an individual, a partnership, a limited liabilitycompany, a corporation, or an association.
"Department" refers to the United States Department of VeteransAffairs.
"Income" means money received from the Department andrevenue or profit from any property wholly or partially acquiredtherewith.
"Estate" means income on hand and assets acquired partially orwholly with "income".
"Benefits" means all money paid or payable by the United Statesthrough the department.
"Protected person" means a beneficiary of the department.
"Guardian" means any fiduciary for the person or estate of aprotected person or a person designated by a protective order issuedunder IC 29-3 to act on behalf of a protected person.
"Secretary" refers to the secretary of the department.
(Formerly: Acts 1953, c.112, s.2001.) As amended by Acts 1982,P.L.171, SEC.63; P.L.33-1989, SEC.41; P.L.1-1990, SEC.267;P.L.8-1993, SEC.460.
IC 29-1-19-2
Party in interest; notice of hearing
Sec. 2. The Secretary shall be a party in interest in anyproceeding:
(1) for the appointment or removal of a guardian;
(2) for the recognition that an individual is no longer a minor oran incapacitated person (as defined in IC 29-3-1-7.5); and
(3) affecting in any manner the administration by the guardianof the estate of any present or former protected person whoseestate includes assets derived in whole or in part from benefitspaid at any time by the Department.
Not less than fifteen (15) days before the hearing on the matter,notice in writing of the time and place of the hearing shall be givenby mail (unless waived in writing) to the office of the Departmenthaving jurisdiction over the area in which the suit or proceeding ispending.
(Formerly: Acts 1953, c.112, s.2002.) As amended by P.L.33-1989,SEC.42.
IC 29-1-19-3
Appointment of guardian
Sec. 3. Whenever, pursuant to any law of the United States orregulation of the department, it is necessary, prior to payment ofbenefits, that a guardian be appointed, the appointment may be made
in the manner provided in this chapter.
(Formerly: Acts 1953, c.112, s.2003.) As amended by P.L.1-1990,SEC.268.
IC 29-1-19-4
Repealed
(Repealed by Acts 1971, P.L.412, SEC.1.)
IC 29-1-19-5
Petition for appointment
Sec. 5. (a) A petition for the appointment of a guardian may befiled by any relative or friend of the incapacitated person or minor orby any person who is authorized by law to file such a petition. Ifthere is no person authorized to file or if the person authorized to filerefuses or fails to file a petition within thirty (30) days after mailingof notice by the Department to the last known address of the person,if any, indicating the necessity for the filing of a petition, a petitionfor appointment may be filed by any resident of Indiana.
(b) The petition for appointment shall set forth the name, age,place of residence of the protected person, the name and place ofresidence of the nearest relative, if known, and the fact that theprotected person is entitled to receive benefits payable by or throughthe Department and shall set forth the amount of money then due andthe amount of probable future payments.
(c) The petition shall also set forth the name and address of theperson or institution, if any, having actual custody of the protectedperson and the name, age, relationship, if any, occupation, andaddress of the proposed guardian, and, if the nominee is a naturalperson, the number of protected persons for whom the nominee ispresently acting as guardian. Notwithstanding any law as to priorityof persons entitled to appointment, or the nomination in the petition,the court may appoint some other individual or a bank or trustcompany as guardian, if the court determines it is for the best interestof the protected person.
(d) In the case of an incapacitated person the petition shall showthat the person has been rated incapacitated by the Department onexamination in accordance with the laws and regulations governingthe Department.
(Formerly: Acts 1953, c.112, s.2005.) As amended by P.L.33-1989,SEC.43.
IC 29-1-19-6
Appointment of guardian; condition precedent to payment ofveterans' benefits; minor ward
Sec. 6. Where a petition is filed for the appointment of a guardianfor a minor, a certificate of the secretary or the secretary's authorizedrepresentative, setting forth the age of such minor as shown by therecords of the department and the fact that the appointment of aguardian is a condition precedent to the payment of any moneys duethe minor by the department shall be prima facie evidence of the
necessity for such appointment.
(Formerly: Acts 1953, c.112, s.2006.) As amended by P.L.1-1990,SEC.269.
IC 29-1-19-7
Appointment of guardian; condition precedent to payment ofveterans' benefits; incapacitated person
Sec. 7. Where a petition is filed for the appointment of a guardianfor an incapacitated person, a certificate of the administrator or theadministrator's duly authorized representative that the person hasbeen rated incompetent or incapacitated by the Department onexamination in accordance with the laws and regulations governingthe Department and that the appointment of a guardian or theissuance of a protective order is a condition precedent to the paymentof money due the protected person by the Department shall be primafacie evidence of the necessity for the appointment.
(Formerly: Acts 1953, c.112, s.2007.) As amended by P.L.33-1989,SEC.44.
IC 29-1-19-8
Filing petitions; notice
Sec. 8. Upon the filing of a petition for the appointment of aguardian or the issuance of a protective order under this article,notice shall be given to the incapacitated person, and to other personsand the department by certified mail.
(Formerly: Acts 1953, c.112, s.2008.) As amended by Acts 1982,P.L.171, SEC.64; P.L.33-1989, SEC.45; P.L.95-2007, SEC.12.
IC 29-1-19-9
Bond of guardian
Sec. 9. (a) Upon appointment, a guardian shall execute and filebond to be approved by the court in an amount not less than theestimated value of the personal estate and anticipated income of theprotected person during the ensuing year. The bond shall be in theform and be conditioned as required of guardians appointed underIC 29-3-7. The court may from time to time require the guardian tofile an additional bond. Any bank or trust company organized underthe laws of the state, or of the United States of America, andoperating a bank or trust company, which is located within Indiana,which is now acting, or which may act as a guardian under thischapter, is exempt from furnishing the bond required in thissubsection to the same extent and in the same manner as a bank ortrust company, when acting in a fiduciary capacity, is relieved fromfiling a bond under the provisions of IC 28-2-7.
(b) Where a bond is tendered by a guardian with personal sureties,there shall be at least one (1) or more surety or sureties and theguardian or sureties shall file with the court a certificate under oathwhich shall describe the property owned, both real and personal, andshall state that each is worth the sum named in the bond as thepenalty thereof over and above all the guardian's debts and liabilities
and the aggregate of other bonds on which the guardian is principalor surety and exclusive of property exempt from execution. The courtmay require additional security or may require a corporate suretybond, the premium thereon to be paid from the ward's estate.
(Formerly: Acts 1953, c.112, s.2009; Acts 1961, c.93, s.1; Acts 1971,P.L.413, SEC.1.) As amended by Acts 1982, P.L.171, SEC.65;P.L.33-1989, SEC.46.
IC 29-1-19-10
Accounting by guardian; notice; hearing
Sec. 10. (a) Every guardian who has received or shall receivemoney or other things of value from the Department shall file withthe court biennially within thirty (30) days following the anniversarydate of the appointment, in addition to other accounts as required bythe court, a full, true, and accurate account under oath of all moneyor other things of value received by the guardian, all earnings,interest, or profits derived from the estate, all property acquired withthe estate and of all disbursements from the estate, and showing thebalance at the date of the account and how it was invested.
(b) The guardian, at the time of filing any account, shall exhibitall securities or investments held by the guardian to an officer of thebank or other depository wherein the securities or investments areheld for safekeeping or to an authorized representative of thecorporation which is surety on the guardian's bond, or to the judge orclerk of a court in this state, or, upon request of the guardian or otherinterested party, to any other reputable person designated by thecourt, who shall certify in writing that the person has examined thesecurities or investments and identified them with those described inthe account, and shall note any omissions or discrepancies. If thedepository is the guardian, the certifying officer shall not be theofficer verifying the account. The guardian may exhibit the securitiesor investments to the judge of the court, who shall endorse on theaccount and the copy of the account a certificate that the securitiesor investments shown as held by the guardian were each in factexhibited to the judge and that those exhibited were the same asthose shown in the account, and noting any omission or discrepancy.That certificate and the certificate of an official of the bank in whichare deposited any funds for which the guardian is accountable,showing the amount on deposit, shall be prepared and signed induplicate, and one (1) of each shall be filed by the guardian with theaccount.
(c) At the time of filing in the court any account, a certified copyof the account and a signed duplicate of each certificate filed withthe court shall be sent by the guardian to the office of the Departmenthaving jurisdiction over the area in which the court is located. Asigned duplicate or a certified copy of a petition, motion, or otherpleading, pertaining to an account, or to any matter other than anaccount, and which is filed in the guardianship proceedings or in anyproceeding for the recognition that an individual is no longer a minoror an incapacitated person shall be furnished by the person filing the
petition, motion, or pleading to the proper office of the Department.Unless hearing is waived in writing by the attorney of theDepartment, and by all other persons entitled to notice, the courtshall fix a time and place for the hearing on the account, petition,motion, or other pleading not less than fifteen (15) days nor morethan thirty (30) days from the date filed, unless a different availabledate is stipulated in writing. Unless waived in writing, written noticeof the time and place of hearing shall be given the Department officeconcerned, the guardian, and any others entitled to notice not lessthan fifteen (15) days prior to the date fixed for the hearing. Thenotice may be given by mail, in which event it shall be deposited inthe mail not less than fifteen (15) days prior to the date specified.The court, or clerk of the court, shall mail to the Department officea copy of each order entered in any guardianship proceeding inwhich the administrator is an interested party.
(d) If the guardian is accountable for property derived fromsources other than the Department, the guardian shall be accountableas required under the applicable law of this state pertaining to theproperty of minors or incapacitated persons who are not beneficiariesof the Department, and the guardian is entitled to the compensationprovided by law for administering the other property. The accountfor other property may be combined with the account filed inaccordance with this section.
(Formerly: Acts 1953, c.112, s.2010; Acts 1971, P.L.413, SEC.2.) Asamended by P.L.33-1989, SEC.47.
IC 29-1-19-11
Removal of guardian
Sec. 11. If any guardian shall fail to file with the court anyaccount as required by this article or by an order of the court whenany account is due or within thirty (30) days after citation issues asprovided by law, or shall fail to furnish the department a true copyof any account, petition, or pleading as required by this article, suchfailure may in the discretion of the court be ground for removal.
(Formerly: Acts 1953, c.112, s.2011.) As amended by Acts 1982,P.L.171, SEC.66; P.L.1-1990, SEC.270.
IC 29-1-19-12
Compensation of guardian; liquidation of loans or investments
Sec. 12. (a) Compensation payable to guardians shall:
(1) be based upon services rendered; and
(2) not exceed either five percent (5%) of the amount of moneysreceived or such larger amount as may be established by thecourt during the period covered by the account.
(b) In the event of extraordinary services by any guardian, thecourt, upon petition and hearing thereon, may authorize reasonableadditional compensation for the services. A copy of the petition andnotice of hearing on the petition shall be given the proper office ofthe department in the manner provided in the case of hearing on aguardian's account or other pleading. (c) No commission or compensation shall be allowed on themoneys or other assets received from a prior guardian nor upon theamount received from liquidation of loans or other investments.
(Formerly: Acts 1953, c.112, s.2012; Acts 1971, P.L.413, SEC.3.) Asamended by P.L.1-1990, SEC.271.
IC 29-1-19-13
Investment of funds
Sec. 13. Every guardian shall invest the surplus funds of the estateof the protected person, in which investment the guardian has nointerest, and only as provided in this section:
(1) In bonds or notes constituting the direct and generalobligations of the United States, or of a state that has not at anytime during the ten (10) years next preceding the date of theinvestment defaulted in payment of the principal or interest onany bonds or notes by it issued, or in bonds, the payment ofwhich, both principal and interest, is guaranteed by the UnitedStates.
(2) In bonds or notes that are the direct and general legalobligations of a county, city, or town in this state, and whichalso at the date of the investment has the power to levy generaltaxes sufficient for the payment of principal and interest on theobligations, if the issuer of the obligation has not defaulted inpayment of principal or interest due upon any of its bonds ornotes at any time during the ten (10) years next preceding thedate of the investment.
(3) After prior order of the court, upon application, in thelegally issued notes or bonds of the owner of improvedunencumbered real property in this state, secured by firstmortgage or deed of trust. The total debt secured by theencumbrance may not exceed fifty percent (50%) of the cashmarket value of the real property at the time of the investment,and, if buildings or other improvements constitute a materialpart of the value of the premises encumbered to secure theindebtedness, they shall be kept insured against loss or damageby fire, in a reasonable amount for the benefit of the owners ofthe notes or bonds. Before making any investment, a signedapplication shall be procured from the borrower, that shallcontain the information required by the lender, and that shallcontain a complete description of the real estate, includingimprovements and an affirmative statement that the proposedborrower is the owner of the entire fee simple title to the realestate and improvements, that they are free of everyencumbrance or lien of any character, or if not, a statement ofany existing encumbrance or other liens, and specificauthorization to the lender to withhold from the proposed loanthe necessary sum to discharge and procure the release of anyencumbrances or other liens. The release shall be procured andfiled for record prior to or contemporaneously with the makingof the loan. The proposed borrower shall also furnish with the
application an abstract or certificate of title, which shall becompleted to the time of closing the loan. The guardianproposing to make a loan or purchase any notes or bonds shallexhibit to the court with the application for approval the opinionof a qualified attorney at law, satisfactory to the court, whichopinion shall show that the attorney has examined the title orcertificate of title and that it is the opinion of the attorney thatthe proposed borrower has good title to the property to beencumbered, and that the proposed encumbrance will constitutea first lien on the property. In addition, the guardian shall filewith the court satisfactory written evidence that the cash marketvalue of the property to be encumbered is in accordance withthe requirements of this subsection. If the guardian purchasesnotes or bonds previously issued, the attorney's examination andopinion shall also disclose whether the proposed transferor hasand will pass to the guardian good title together with the lienssecuring the notes or bonds. Except loans insured by the federalhousing administrator, the guardian is not authorized to loan orinvest money upon the security of a real estate mortgage or trustdeed which secures any principal indebtedness other than to theprotected person's estate, and in the case of a minor the maturityof any indebtedness to the minor secured by real estatemortgage or trust deed shall not be later than the date on whichthe minor will attain the age of majority. Any investment madeby a guardian in any of the securities enumerated shall not betransferred, liquidated, or disposed of, except upon petitionfiled for that purpose and an order of court obtained.
(4) In shares of a federal savings and loan association organizedunder the Home Owners' Loan Act of 1933, (12 U.S.C. 1461through 1468), as in effect on December 31, 1990, or anybuilding or savings and loan association whose principal placeof business is located in Indiana whose accounts are insured bythe Federal Deposit Insurance Corporation as provided in 12U.S.C. 1811 through 1833e, as in effect on December 31, 1990.No shares may be purchased in excess of the amount ofinsurance protection afforded a member or investor of any suchinstitution.
(5) In savings deposits in any bank whose principal place ofbusiness is located in Indiana.
(Formerly: Acts 1953, c.112, s.2013; Acts 1957, c.223, s.1.) Asamended by Acts 1982, P.L.1, SEC.53; P.L.33-1989, SEC.48;P.L.8-1991, SEC.32.
IC 29-1-19-14
Support; maintenance; education
Sec. 14. (a) A guardian shall not apply any portion of the incomeor the estate for the support or maintenance of any person other thanthe protected person, the spouse, and the children under the age ofeighteen (18) years of the protected person, except upon petition toand prior order of the court after a hearing. A signed duplicate or
certified copy of the petition shall be furnished the proper office ofthe Department and notice of hearing shall be given the office asprovided in the case of hearing on a guardian's account or otherpleading.
(b) If the protected person is a child under the age of eighteen (18)years, and the parents or those standing in loco parentis are able tocare for, maintain, and educate the protected person, neither theincome nor the principal shall be expended for any purpose exceptas ordered by the court.
(Formerly: Acts 1953, c.112, s.2014; Acts 1973, P.L.287, SEC.11.)As amended by P.L.33-1989, SEC.49.
IC 29-1-19-15
Real estate acquisition
Sec. 15. (a) The court may authorize the purchase of the entire feesimple title to real estate in Indiana in which the guardian has nointerest, but only as a home for the ward, or to protect the ward'sinterest, or (if the ward is not a minor) as a home for the ward'sdependent family.
(b) Such purchase of real estate shall not be made except upon theentry of an order of the court after hearing upon verified petition. Acopy of the petition shall be furnished the proper office of thedepartment and notice of hearing on the petition shall be given theoffice as provided in the case of hearing on a guardian's account.
(c) Before authorizing such investment the court shall requirewritten evidence of value and of title and of the advisability ofacquiring such real estate. Title shall be taken in the ward's name.
(d) This section does not limit the right of the guardian:
(1) on behalf of the ward to bid and to become the purchaser ofreal estate at a sale of the real estate pursuant to decree offoreclosure of lien held by or for the ward, or at a trustee's sale,to protect the ward's right in the property so foreclosed or sold;or
(2) if such be necessary to protect the ward's interest and uponprior order of the court in which the guardianship is pending, toagree with co-tenants of the ward for a partition in kind, or topurchase from co-tenants the entire undivided interests held bythem, or to bid and purchase the same at a sale under a partitiondecree, or to compromise adverse claims of title to the ward'srealty.
(Formerly: Acts 1953, c.112, s.2015.) As amended by P.L.1-1990,SEC.272.
IC 29-1-19-16
Copies of records; determining eligibility
Sec. 16. When a copy of any public record is required by thedepartment to be used in determining the eligibility of any person toparticipate in benefits made available by the department, the officialcustodian of such public record shall without charge provide theapplicant for such benefits or any person acting on the applicant's
behalf or the authorized representative of the department with acertified copy of such record.
(Formerly: Acts 1953, c.112, s.2016.) As amended by P.L.1-1990,SEC.273.
IC 29-1-19-17
Discharge of guardian
Sec. 17. In addition to any other provisions of law relating tojudicial restoration and discharge of guardian, a certificate by theDepartment showing that a minor has attained majority or that theincapacitated person has been rated competent by the Departmentupon examination in accordance with law shall be prima facieevidence that the minor has attained majority, or the incapacitatedperson has recovered competency. Upon hearing after notice asprovided in this chapter and the determination by the court that theminor has attained majority or the incapacitated person has recoveredcompetency, an order shall be entered to that effect, and the guardianshall file a final account within sixty (60) days of such determination.Upon hearing after notice to the former protected person and to theDepartment as in case of other accounts, upon approval of the finalaccount, and upon delivery to the protected person of the assets duefrom the guardian, the guardian shall be discharged and theguardian's sureties released.
(Formerly: Acts 1953, c.112, s.2017; Acts 1971, P.L.413, SEC.4.) Asamended by P.L.33-1989, SEC.50.
IC 29-1-19-18
Application of certain provisions of chapter
Sec. 18. The provisions of this chapter relating to surety bondsand the administration of estates of protected persons shall apply toall income and estate as defined in section 1 of this chapter whetherthe guardian has been appointed under this chapter or under anyother law of this state, special or general, prior or subsequent toJanuary 1, 1954.
(Formerly: Acts 1953, c.112, s.2018.) As amended by Acts 1982,P.L.171, SEC.67; P.L.33-1989, SEC.51.