| Representative Payees for Social Security/SSI Benefits |
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by: Advocacy Center
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| Q. | What is representative payment? |
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| A. | Representative payment is when the Social Security Administration decides that a beneficiary (the person getting benefits) cannot manage his benefits because of youth or disability. A beneficiary may request that a representative payee be appointed to manage his or her benefits. |
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| Q. | When does Social Security decide that representative payment is needed? |
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| A. | Social Security will generally appoint a representative payee when a person getting benefits is:
- A drug addict or alcoholic; or
- Under 18; or
- Legally incompetent; or
- Physically or mentally not able to manage his money.
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| Q. | How does Social Security pick a representative payee? |
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| A. | A representative payee can be a person, agency, organization or institution. Social Security tries to find the payee who will best serve the interests of the beneficiary (the person getting benefits).
Social Security looks at:
- The relationship between a payee and the beneficiary;
- The interest a payee shows in the beneficiary;
- Whether a payee has legal authority or custody of the beneficiary;
- How well the payee can take care of the beneficiary's needs.
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| Q. | What evidence does Social Security look at? |
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| A. | Social Security looks at different kinds of evidence, including doctors' reports and statements by people who know the beneficiary. If a judge has found a beneficiary legally incompetent, Social Security will look at court records. |
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| Q. | But I'm the spouse or parent. Don't I have the right to be payee? |
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| A. | Not always. Social Security prefers some people over others to be payees. But, Social Security does not have to follow that order of preference. Social Security may decide that someone else is a better payee. |
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| Q. | How will I know that Social Security wants to appoint a representative payee for me? |
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| A. | Social Security must send you a letter. If you have a legal guardian, he or she will get a letter. |
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| Q. | What can I do? I don't want a payee to control my money. |
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| A. | If you don't want a payee, or don't want that payee, you do have rights. You can look at the evidence Social Security used to decide you need a payee. You can give new evidence to try to change the decision.
If Social Security won't change the decision, you can request a reconsideration (this is an appeal). This can be done at any Social Security office or you can call to request that a copy of the "Request for Reconsideration" form be mailed to you. Keep a copy of your written request so you have proof. |
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| Q. | I don't mind having a payee. But what can the payee buy with my money? Can the payee put my money in his bank account? |
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| A. | A payee must use the money only for the beneficiary. It's OK to use the money for the beneficiary's food, shelter, clothing, medical care and personal items. The payee cannot use the money on himself. A payee cannot mix the beneficiary's money with his own. |
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| Q. | Does the payee have to keep any records of how he uses the beneficiary's money? |
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| A. | Yes. Social Security may ask for proof in writing of how the money was spent, saved or invested for the beneficiary. Social Security may also ask for proof of where the beneficiary lived and any other income that came to the beneficiary. A payee should keep detailed records. |
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| Q. | What if the beneficiary gets married or moves away? Does the payee have to tell Social Security? |
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| A. | The payee must tell Social Security about anything that will affect the amount of benefits. These include changes of income, assets, marital status, medical condition, where the beneficiary lives, and number of people living with the beneficiary. There may be other changes a payee must report to Social Security. |
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| Q. | What if the payee misuses the money? |
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| A. | Generally, the payee, not Social Security, is responsible for paying the money back. A beneficiary can sue the payee for misuse of money. Social Security should be asked to change the payee.
If Social Security knows that the payee is misusing the money and does not act, then Social Security may have to pay the beneficiary back.
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| Q. | Is that the only time a payee can be changed? |
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| A. | No. Social Security can change the payee if it decides that another payee is better or if the current payee is not doing what he's supposed to do, dies, or wants to stop being payee. |
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| Q. | I'm able to take care of my own money now. Can I make Social Security stop using a payee? |
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| A. | Yes, if you can prove to Social Security that you are now able to manage your money. Give Social Security a statement in writing from your doctor or other medical professional who knows you. If you were found legally incompetent by court order, you will need a new court order finding you competent to manage your money. |
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| Q. | Are there any other tips for successfully dealing with Social Security? |
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| A. | Make sure to take notes of any telephone conversations with Social Security. Write down the name, telephone number, date, time, and what was said. Keep a record.
It is always best to work through your local Social Security office. |
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