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 and 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 with the help of a geriatric care manager, she located a new
residence for her father. She closed old bank accounts and
opened new ones.
The move was only semi-traumatic for everyone involved.
That's when 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 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:
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Determine
the beneficiary's needs, and use his/her payments to
meet those needs;
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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;
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Report any
changes or events which could affect the
beneficiary's eligibility for benefits or payment
amount;
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Keep
records of all payments received and how they are
spent and/or saved;
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Provide
benefit information to social service agencies or
medical facilities that serve the beneficiary;
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Help the
beneficiary get medical treatment when necessary;
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Complete
written reports accounting for the use of funds;
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Notify
Social Security of any changes in your (the
representative payee's) circumstances that would
affect your performance or ability to continue as
payee;
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Return any
payments to which the beneficiary is not entitled.
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What
Can't a Representative Payee Do?
A representative payee can't:
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Sign
legal documents, other than Social Security documents,
on behalf of a beneficiary (this is what your Power of
Attorney is for);
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Have
legal authority over income from sources other than Social
Security or SSI, such as earned income, pensions, or
any other income source;
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Use
a beneficiary's money for the representative payee's
own personal expenses;
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Spend
funds in a way that would leave the beneficiary
without necessary items or services (housing, food,
medical care);
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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;
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Keep
any funds once you are no longer the payee;
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Charge
the beneficiary for services unless you are authorized
by Social Security to do so.
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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.
Where is the Closest Social Security
Office?
If you think it would be a good idea to start the process to
become someone's representative payee, you can
locate the Social
Security office closest to you here.
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