Understanding the Need for a Representative Payee

You may know someone who gets a monthly Social Security benefit or Supplemental Security Income payment and who also needs help managing their money. If someone you know needs help, Social Security can appoint a person or an organization to act as a “representative payee” responsible for receiving and managing a person’s benefits.

When they assign a representative payee, they select someone who knows the beneficiary’s needs and can make decisions about how to best use their benefits for their care and wellbeing. Representative payees are responsible for completing an annual form to account for the benefit payments they receive and manage. They must complete this form and return it to Social Security by mail or, if they have a personal my Social Security account, they can file it online using the Representative Payee portal. Account holders can get a benefit verification letter and manage direct deposit and wage reporting for their beneficiaries.

You also have the option to identify, in advance, up to three people you trust to serve as your future representative payee and help manage your benefits, if the need arises. We call this Advance Designation. We offer Advance Designation to capable adults and emancipated minors who are applying for or already receiving Social Security benefits, Supplemental Security Income, or Special Veterans Benefits. With Advance Designation, you and your family can enjoy peace of mind knowing someone you trust may be appointed to manage your benefits.

Advance Designation of Representative Payee

To help protect what is important to you, Social Security will offer the option to advance designate a representative payee. Advance designation allows you to designate up to three individuals who could serve as a representative payee for you if the need ever arises.

They offer advance designation to capable adults and emancipated minors who are applying for or receiving Social Security benefits, Supplemental Security Income, or Special Veterans Benefits. If you become unable to manage, or direct others to manage your benefits in the future, you will have peace of mind knowing that someone you trust may be appointed to manage your benefits for you.

They only contact advance designees if we need to find a representative payee to assist you in managing your benefits. They will first consider your advance designees, but we still fully evaluate them to determine their suitability at that time.

Advance designation is not

• An indication of your capability to manage or direct the management of your benefits.
  

• An indication of someone's suitability to serve as a representative payee.
  

• An appointment of a representative payee.
  

• Power of attorney.

It is optional, and you can update or withdraw your advance designation at any time. If you choose to participate, we will send you a notice each year listing your advance designees for your review.

Representative Payee

Social Security's Representative Payment Program provides benefit payment management for the beneficiaries who are incapable of managing their Social Security or Supplemental Security Income (SSI) payments. They appoint a suitable representative payee (payee) who manages the payments on behalf of the beneficiaries. Generally, they look for family or friends to serve as payees. When friends or family members are not able to serve as payees, They look for qualified organizations. We also offer the option to advance designate up to three individuals who could serve as payee for you if the need arises.

Payees may receive an annual Representative Payee Report to account for the benefit payments received. Due to a recent change in the law, They no longer require the following payees to complete an annual Representative Payee Report:

• Natural or adoptive parents of a minor child beneficiary who primarily reside in the same household as the child;

• Legal guardians of a minor child beneficiary who primarily reside in the same household as the child;

• Natural or adoptive parents of a disabled adult beneficiary who primarily reside in the same household with the beneficiary; and

• Spouse of a beneficiary.

Although these groups of payees no longer have to complete the annual Representative Payee Report, all payees are responsible for keeping records of how the payments are spent or saved, and making all records available for review if requested by SSA.

The Trusted Social Security Advisors blog is all about making sense out of Social Security benefits. The information we provide is based on our understanding of the rules that govern the Social Security Administration and should not substitute for advice from your own financial, legal, or tax advisors.