Marilyn's father John, age 83, has several health problems, including growing confusion that makes keeping up with his finances impossible.

As luck would have it, he had the foresight several years ago to get his affairs in order. With the assistance of his attorney, he made out a new will. He appointed his daughter, Moira, to handle his financial affairs in the event he no longer could. He provided copies of his legal Power of  Attorney documents to his bank, his broker, his financial advisor, and his CPA.

Moira has signature authority on all of his accounts, and she can get into the safety deposit box whenever she needs to.

About 18 months ago Moira took over everything. It took a little while to untangle the checking account, but things have been going pretty well this last year. With a minimum of fuss Moira was able to list and sell the house after John moved into assisted living. The car went just as easily. John's financial advisors have bent over backward to give Moira any help she's needed.

Things were going as slick as a whistle - at least as slick as anything can go when a daughter is working full time and taking care of her own family as well as her father.

Then Moira was promoted. The promotion involved a transfer. Moira set to work. She found a new house, schools for her kids, and a new residence for her father. She closed old bank accounts and opened new ones.

The move was only semi-traumatic for everyone involved.

Then things got complicated...

Moira called Social Security to have her father's direct deposit moved to the new bank. She should have done this before she closed the old account, but there were several weeks before the next check was due, and frankly, she forgot.

The people at Social Security wouldn't talk to her. They wouldn't even acknowledge that they had a recipient with her father's name. Moira offered to express mail a copy of her Power of Attorney, but Social Security wasn't interested.

"Social Security does not recognize power of attorney for purposes of managing benefit payments," they said.

Moira needs to be an officially appointed "Representative Payee" in order to deal with Social Security (and Medicare) on her father's behalf.

And her father is no longer legally competent to make this kind of an appointment. (Even if he were, Social Security would take his request into account, but they make the final determination about whether a particular individual will be appointed, or whether they think someone else would be more suitable.)

It's too late to reinstate the old bank account number, so John's Social Security check for this month seems to have gone back. Moira's getting a little tight for funds, what with all of the extra moving costs.

What Moira has to do now is petition Social Security to become John's Representative Payee. She'll have to make an appointment at the nearest Social Security office to apply (more time off work). She and John will have a face-to-face interview, and she'll submit her application form (SSA-11-BK) with documents that prove her identity. She does have a letter from John's doctor that he isn't able to manage his finances, but that isn't always necessary.

Then, if all goes well, eventually she'll receive the necessary approval.

What's a Representative Payee?

When people need help managing their benefits, Social Security, after a careful investigation, appoints a relative, friend, or other interested party to serve as the beneficiary's "representative payee." This means the person's benefits are then paid to the payee on the beneficiary's behalf.

How is a Representative Payee Chosen?

Appointment to be someone's representative payee isn't automatic. Social Security tries to select someone who knows the recipient, who sees the recipient often, and who knows what his or her needs are. For that reason, if the recipient is living with someone who already knows, and is helping, the recipient, they usually select that person to be the representative payee.

What Does a Representative Payee Do?

A payee acts on behalf of the beneficiary. A payee is responsible for everything related to benefits that a capable beneficiary would do for himself. SSA encourages payees to go beyond just managing finances and to be actively involved in the beneficiary's life.

A payee has the following obligations:

• Determine the beneficiary's needs, and use his/her payments to meet those needs;
• Save any money left after meeting the beneficiary's current needs in an interest bearing account or savings bonds for the beneficiary's future needs; 
• Report any changes or events which could affect the beneficiary's eligibility for benefits or payment amount;
• Keep records of all payments received and how they are spent and/or saved;
• Provide benefit information to social service agencies or medical facilities that serve the beneficiary;
• Help the beneficiary get medical treatment when necessary;
• Complete written reports accounting for the use of funds;
• Notify Social Security of any changes in your (the representative payee's) circumstances that would affect your performance or ability to continue as payee;
• Return any payments to which the beneficiary is not entitled.
  
  What Can't a Representative Payee Do?

 A representative payee can't:

• Sign legal documents, other than Social Security documents, on behalf of a beneficiary (this is what your Power of Attorney is for);
• Have legal authority over income from sources other than Social Security or SSI, such as earned income, pensions, or any other income source;
• Use a beneficiary's money for the representative payee's own personal expenses;
• Spend funds in a way that would leave the beneficiary without necessary items or services (housing, food, medical care);
• Put a beneficiary's Social Security or SSI funds in your own or another person's account. Checking and savings accounts must show the beneficiary as the only owner;
• Keep any funds once you are no longer the payee;
• Charge the beneficiary for services unless you are authorized by Social Security to do so.

How Does a Representative Payee Report to SSA?

Usually the Social Security Administration will send you a "Representative Payee Report" form once a year. Keep clear records about how the beneficiary's money was spent or saved and the report will be fairly simple to complete.