What Is a Representative Payee?
A representative payeeaccepts Social Security or Supplemental Security Income (SSI) payments for someone who is not capable of managing their own benefits.
Once a representative has been identified, theSocial Security Administration (SSA) willsend the beneficiary's Social Security or other benefit checks to the representative payee.
The representative payee may alsoassist the individual with money management and protect them from victimization or financial abuse, such as identity theft and other forms of fraud.
Key Takeaways
- A representative payee is appointed to accept Social Security or Supplemental Security Income (SSI) payments on behalf of someone incapable of managing their benefits.
- Generally, family or friends serve as representative payees.
- Legally incompetent adults and most minors are required to have a representative payee.
- Representative payees must spend or save the benefits according to the beneficiaries' needs and are expected to account for the money spent to the Social Security Administration (SSA).
Who Needs a Representative Payee?
Adults who are declared legally incompetent and most minors are required to have a representative payee. The SSA makes decisions about other beneficiaries, such as someone with a drug or alcohol addiction, on a case-by-case basis, and may determine that a legally competent adult needs a representative payee, if they are unable to manage their own benefits.
Who Can Serve As a Representative Payee?
Ideally, according to the SSA, family or friends will typically serve as representative payees. If that's not possible, the SSA may use entities called qualified organizations to act asrepresentative payees. Each state manages its own Protection and Advocacy System (P&A) to protect individuals by advocating on their behalf. There are currently 57 P&As in the United States and its territories, which are independent of healthcare service providers.
For a person to become a representative payee for a friend or family member, they must completeForm SSA-11—Request to Be Selected as a Payee, typically in person at a Social Security office. The applicant must provide documentation to prove their identity, including theirSocial Security number. You can find the nearest Social Security office via the SSA's Field Office Locator tool.
7%
According to the Social Security Administration, more than 7% of all Social Security recipients use a representative payee.
What Must a Representative Payee Do?
A representative payee must spend the benefits intended for the beneficiary according to the person's needs. They are expected to account for the money spent and report any changes in the person's living situation to the SSA. For example, if the beneficiary marries, moves, is hospitalized, starts working or stops working, receives or loses any other benefits such as child support,workers' compensation, or a pension, is no longer disabled, is convicted of a crime,or dies.
The beneficiary'schecks must be deposited into a checking or savings account, and the money can be used to pay for the beneficiaries expenses, such ashousing, food, clothing, utilities, health, and dental expenses,personal care items, rehabilitation, education, bills, family expenses,or entertainment. Any remaining funds should be placed in an interest-bearing account.
Are Representative Payees Paid?
Individual representative payees are not paid for their services to the beneficiary. However, alegal guardianmay be able to collect a guardian fee with the authorization of acourt.
What Power Does a Representative Payee Have?
A representative payeecan receive Social Security or SSI payments on behalf of an individual who can't manage their own benefits.
What Can a Representative Payee Not Do?
The representative payee must use these funds in the best interest of the beneficiary, not for any other purpose.
Who Appoints a Representative Payee?
The SSA determines who may act as a representative payee on behalf of a beneficiary. Typically a representative payee is a family member or a close friend: someone who knows the beneficiary well, and can act in their best interest. The process to become a representative payee is fairly straightforward: an applicant must completeForm SSA-11—Request to Be Selected as a Payee, and provide documentation to verify their identity. This is often done face-to-face at a Social Security office.
The Bottom Line
A representative payee is tasked with a major responsibility: managing Social Security or SSI payments for someone who can't do it themselves, typically a child or a legally incompetent adult. A payee receives the benefits and spends the money in ways that directly serve the beneficiary. The rest of the funds must be saved in an account.
