For Social Security purposes, a power of attorney isn’t an acceptable way to manage a person’s monthly benefits.
Social Security recognizes only the use of a designated representative payee for handling the beneficiary’s funds
.
Who Cannot be a representative payee?
A representative payee applicant may not serve if he/she: (a)
Has been convicted of a violation under section 208, 811 or 1632 of the Social Security Act
. (b) Has been convicted of an offense resulting in imprisonment for more than 1 year.
What is a rep payee account used for?
A representative payee bank account is an account used by an appointed person or organization
to manage the finances of a Social Security beneficiary
. Representative payees are chosen by the Social Security Administration to administer the account for a beneficiary—usually an older or disabled person.
Do you need Social Security to add beneficiary?
Banks may require the beneficiary to provide a Social Security number (SSN) for monetary transactions
. This requirement is intended to verify that funds are distributed to the correct designated individual(s) listed in a will, trust, insurance policy, retirement plan, annuity, or other contract.
Can a spouse be a representative payee?
In some cases your payee may be your spouse
. You can also have your disability lawyer or accountant act as your payee. A Representative payee cannot collect a fee, unless he or she is an organizational employee who has been approved by the SSA to collect a fee.
How do I change my representative payee for Social Security?
To change your rep payee, you must
fill out an application at your local SSA office
. The person you select must submit a letter saying he or she is willing to serve as your rep payee. He or she must be able to prove who they are.
Who can be a representative payee for Social Security?
In most cases,
someone who knows you asks us if he/she
can be your payee. It may be a family member, a friend, a legal guardian or a lawyer. In some cases social service agencies, nursing homes or other organizations offer to serve as payees.
Can a rep payee account have a debit card?
It is important to remember that
you are not allowed to give the beneficiary direct access to the bank account as the representative payee
. That means you cannot just hand over the debit card to your child. However, many companies offer programs that help young people (and adults) manage their money.
How do I remove myself as a representative payee?
If, for some reason, you wish to remove a representative payee, you must
prove that you’re mentally and physically able to manage the payments received
. This requires filling out the appropriate forms and submitting your application. In some cases, the Social Security Administration (SSA) may interview the beneficiary.
Who owns a representative payee account?
As a representative payee, you can’t mingle the beneficiary’s Social Security payments with your own money or use them for your own needs. The bank account into which benefits are deposited should be fully owned by
the beneficiary
, with the payee listed as financial agent.
Does a payee get paid?
Are Representative Payees Paid?
Individual representative payees cannot collect a fee for services provided to the beneficiary
. If you are the legal guardian of the beneficiary, however, you may be able to collect a guardian fee if the court has authorized it.
What happens to rep payee account when beneficiary dies?
If the beneficiary dies, any saved benefits belong to his or her estate.
They must be given to the legal representative of the estate or otherwise handled according to state law
. If you need information about state law, contact the probate court or an attorney.
Who qualifies as a beneficiary?
A beneficiary is
any person who gains an advantage and/or profits from something
. In the financial world, a beneficiary typically refers to someone eligible to receive distributions from a trust, will, or life insurance policy.
Does rep payee cease at death?
When a person who receives Social Security benefits dies,
no check is payable for the month of death
, even if they die on the last day of the month. You must return any check received for the month the beneficiary died.
How do I get a representative payee letter from Social Security?
To help with this responsibility, representative payees can now receive, save, email, and print a benefit verification letter for a person they represent using their own my Social Security account, at
www.ssa.gov/myaccount
.
Can a rep payee have online access?
Individual payees who are 18 or older can complete it online by logging in to their my Social Security account
.
What is the difference between payee and payor?
When money is transferred between two parties for the exchange of goods or services, the two parties involved are the payee and payor.
The payee is the person who receives money from the payor. The payor is the person who pays the money to the payee
.
How do I set up a representative payee account?
How Do I Apply to be a Representative Payee? You should
contact the SSA office nearest you to apply to be a payee
. You must then submit an application, form SSA-11 (Request to be selected as payee) and documents to prove your identity.
Can a payee go to jail?
Payees are required to spend the beneficiary’s money only on the payee’s medical needs and personal expenditures.
If a representative is caught misusing a beneficiary’s funds, he or she will not only have to repay the beneficiary, but also face fines and even imprisonment if found guilty
.
