Sometimes,
people who receive Social Security benefits are not able to handle their
own financial affairs. In those cases, and after careful investigation,
Social Security appoints a relative, friend or another interested party
to handle their Social Security matters. That person is called a Representative
Payee. Having power of attorney over someone does not automatically
qualify
that person to be a Representative Payee. A Representative Payee can
also be an organization, such as a nursing home.
Representative Payees are required by law to use benefits
properly. Benefits should first be used for the beneficiary’s
day-to-day needs of food and shelter. Then, benefits may
be used for the beneficiary’s personal needs, such as clothing,
recreation, and other expenses. Benefits can also be used
to pay for medical needs or for care in a residential institution.
When reporting allegations of Representative Payee misuse,
there are several things that must be considered before
reporting this information. A Representative Payee has many
responsibilities.
Responsibilities of a Representative Payee
Some of the duties of a Representative Payee are as follows:
- Determine the beneficiary’s total needs and to use the benefits received
in the best interests of the beneficiary.
- Maintain a continuing awareness of the beneficiary’s needs and condition,
if the beneficiary does not live with the Representative Payee, by
contact such as visiting the beneficiary and consultations with custodians.
- Apply
the benefit payments only for the beneficiary’s use and benefit.
- Notify SSA of any change in his or her circumstances
that would affect performance of the payee's responsibilities.
- Report
to SSA any event that will affect the amount of benefits the beneficiary
receives and to give SSA written reports
accounting for the use of the benefits.
Essential Needs
A Representative Payee must apply the payments for the use and benefit of the
entitled individual. The funds should be spent on the beneficiary’s current
and reasonably foreseeable needs. The needs should be immediate and essential.
Examples of properly disbursed benefits are:
|
Food
|
Dental Care |
| Clothing |
Personal Hygiene |
| Shelter |
Education |
| Utilities |
Rehabilitation Expenses |
| Medical Care and Insurance |
|
If there are funds left over once the beneficiary’s current needs are met,
the representative payee must save and/or invest the remaining funds in trust
for the beneficiary.
Prohibited actions of a Representative Payee
Representative Payees cannot:
- Use a beneficiary’s funds for the Representative Payee’s
personal expenses, or spend funds in a way that would leave the beneficiary
without necessary items or services (housing, food and medical care).
- Put a beneficiary’s Social Security or SSI funds
in the Representative Payee’s on another person's account.
- Keep
conserved funds once they are no longer a Representative Payee for the
beneficiary.
- Charge
the beneficiary for services unless authorized by the Social Security
Administration to do so.
Reporting Potential Violations
Based on the above information, if you feel the Representative Payee
has in some fashion misused the benefits being issued for the beneficiary,
contact the Social Security Administration, Office of the Inspector General
Fraud Hotline. You should provide as much identifying information as possible
regarding the suspect. Such information should include:
- Name of the Representative Payee and the beneficiary, if known,
- Social Security Number of the Representative Payee and the beneficiary,
if known,
- Date of birth of the Representative Payee and the beneficiary,
- Details regarding the allegation, such as when it
happened, how the abuse was committed, and where the
abuse took place.
Your information is important, however, without sufficient facts it is unlikely
that we will be able to provide assistance.
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www.socialsecurity.gov
