Understanding Supplemental Security Income
SSI Spotlight on Dedicated Accounts for Children
2008 Edition

The representative payeerepresentative payee for a disabled child under age 18 who is eligible for large past–due payments (usually any payment covering more than six months of the current benefit rate) is required to open a separate account at a financial institution.

The past–due payments will be deposited directly into that "dedicated account", and the use of these funds is restricted.

	A "dedicated account" must be separate from the account used for the regular monthly benefit payment and can only be a checking, savings, or money market account.
	Other funds, except for certain past–due SSI benefits, cannot be commingled with the funds in the "dedicated account."
	The account cannot be in the form of certificates of deposit, mutual funds, stocks, bonds, or trusts.
	The title on the "dedicated account" must show that the child owns the funds, including interest.

You can use the money only for the following expenses:

	medical treatment; and
	education or job skills training.

We also allow the following expenses, if they benefit the child and are related to the child's impairment:

	personal needs or assistance (e.g., in–home nursing care needed);
	special equipment;
	housing modification;
	therapy or rehabilitation; or
	other items or services approved by your local Social Security office, like legal fees incurred by the child in establishing a claim for disabled child's benefits.

You may not use these monies for basic monthly maintenance costs such as food, clothing, or shelter.

You should use the regular monthly benefit for the child's food, clothing, or shelter.

If there are any questions on use of the funds, contact your local Social Security office.

Each year, we will require the representative payeerepresentative payee to complete a report on the use of the "dedicated account" funds as well as the regular monthly benefits received on the child's behalf.

Therefore, it is very important for the payee to keep receipts, bank statements, and maintain an expense record for at least two years as verification of expenditures. The representative payeerepresentative payee should be able to provide us with an explanation of any expenditure and how it relates to the child's disability.

If there is a change of representative payeerepresentative payee and a "dedicated account" exists, the former payee must complete a final accounting of the funds and return the balance of the account to us. We will then transfer the funds to a new "dedicated account" opened by the new payee.

Furthermore, after the child turns 18 and even if he or she is his or her own payee, the dedicated account provision still applies to the existing account. Money can only be withdrawn in accordance with the dedicated account guidelines.