{"id":37639,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/social-security-a-guide-for-representative-payees.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"social-security-a-guide-for-representative-payees","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/litigation-disputes\/social-security-a-guide-for-representative-payees.html","title":{"rendered":"Social Security: A Guide For Representative Payees"},"content":{"rendered":"
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SSA Publication No. 05-10076 April 1997 ICN 468025<\/h6><\/center>

<\/center>

A Message From Social Security<\/b><\/font><\/p>

More than six million people who get monthly Social Security or Supplemental Security Income (SSI) benefits, or both, need someone to help them manage their money. When a person needs this kind of help, the Social Security Administration..after a careful investigation..appoints a relative, friend, or another interested party to serve as the beneficiary's .representative payee.. The person's Social Security or SSI benefits are then paid in the representative payee's name on the beneficiary's behalf.<\/font>

You probably are reading this booklet because you have volunteered to serve as someone's representative payee. If so, we appreciate your help in seeing that the benefits this person receives are used for his or her personal care and well-being. As you read this booklet, you'll find an explanation of your responsibilities as a representative payee and how to keep track of what you spend on the beneficiary's behalf.<\/font><\/p>

Who Needs A Representative Payee?<\/b><\/font><\/p>

About 25 percent of the people who get SSI, and about 10 percent of the people who get Social Security, have payees.<\/font>

Almost all children under age 18 have payees.a parent, usually. Adults who are unable to manage their finances because of severe physical or mental limitations also need payees.<\/font><\/p>

What About .Power.of.Attorney?.<\/b><\/font><\/p>

People often work out other ways to handle a family member's finances to suit their needs. A .power-of-attorney. arrangement is one of the most commonly used methods. For Social Security purposes, however, such an arrangement is not<\/b> an acceptable way to provide for management of a person's monthly benefits. Although it may be a convenient way to pay bills and handle some legal matters, the power-of-attorney procedure does not include provisions for the responsibility and accountability that Social Security requires of its representative payees.<\/font>

A Representative Payee's Duties<\/b><\/font><\/p>

As a representative payee, you need to keep informed about the individual's needs so that you can decide how benefits can best be used for his or her personal care and well-being. This is particularly important if the beneficiary doesn't live with you.<\/font>

Any money left after meeting the beneficiary's current and reasonably foreseeable needs must be saved and maintained in the beneficiary's behalf. Periodically, Social Security will ask you to complete a form accounting for the funds you have received. There's a a worksheet at the end of this booklet that you can use to keep track of what you spend.<\/font><\/p>

As a representative payee, you will need to keep Social Security informed of changes that may affect the beneficiary's eligibility for benefits. You'll find a list of those changes under section on "Changes To Report"<\/a>.<\/font><\/p>

Representative payees are required by law to use benefits properly. If a payee misuses benefits, he or she must repay the misused funds to the beneficiary. A payee convicted of misuse may be fined and\/or imprisoned.<\/font><\/p>

Reminder:<\/b> A payee is prohibited from entering into binding contracts for a beneficiary, unless the payee is the beneficiary's parent or legal guardian, or the beneficiary has granted the payee a .power of attorney..<\/font><\/p>

A Special Note To Payees For Child Beneficiaries Receiving SSI.<\/b>If you are payee for a child receiving SSI payments, you may be required to obtain treatment for the child's disabling condition when treatment is determined to be medically necessary. If you are not sure whether treatment is required for the beneficiary, you should contact your Social Security office. Failure to obtain medical treatment for the child may require Social Security to remove you as payee.<\/font><\/p>

How To Use The Benefits<\/b><\/font><\/p>

First, make sure the beneficiary's day-to-day needs for food and shelter are met. Then, benefits may be used for the beneficiary's personal needs, such as clothing, recreation, and other expenses. Benefits also can be used to pay for medical needs (for example, eyeglasses and hearing aids) and dental care not provided by Medicare, Medicaid, or a residential institution.<\/font>

If a beneficiary is in a nursing home or other institution, you should use benefits to pay the usual charges for care. For these institutionalized beneficiaries, you also should set aside a minimum of $30 each month to be used for the beneficiary's personal needs or saved on his or her behalf.<\/font><\/p>

Also, if the beneficiary lives in an institution and is eligible for Medicaid or is a member of a family that receives Aid to Families with Dependent Children (AFDC) payments, you should contact the local Social Security office about using benefits to support family members.<\/font><\/p>

Handling Large Sums of Money<\/b><\/font><\/p>

Sometimes the representative payee for a Social Security or SSI beneficiary receives a large payment covering several months, or even years, of benefits. When this happens, it is particularly important for the representative payee to make plans to spend the money wisely. Many payees are unsure about how to use a large sum of money. The main thing to keep in mind is that the money must be used in the best interests of the beneficiary.<\/font>

Your first priority is to make sure the beneficiary's current needs are being met. This includes food, shelter, medical care, and other items for the individual's personal comfort.<\/font><\/p>

If there's money left over after you have provided for these basic needs, you could spend the money on things that would improve the beneficiary's daily living conditions or provide better medical care. You also could arrange training for the beneficiary to help him or her have a more rewarding future and become more self-sufficient.<\/font><\/p>

You may decide to use the beneficiary's funds for major health-related expenses, such as reconstructive dental care, a motorized wheelchair, rehabilitation expenses, or insurance premiums. Funds also can be used to pay for special training programs, school tuition, or daily school expenses. You also could spend some of the money on recreation such as movies, concerts, magazine subscriptions, or a special trip for the beneficiary.<\/font><\/p>

Special Purchases<\/b><\/font> You may want to make some of the following special purchases for the comfort of the beneficiary.<\/font><\/p>