Guide for Organizational Representative Payees

Glossary

Custody - Refers to the control, supervision and care of the beneficiary. "Physical custody" means that the beneficiary actually lives with the person or organization. "Legal custody" means that a court has placed a person in the custody of an individual, institution, or other agency. Temporary changes in custody (for vacations or short trips) are not considered a change of custody if the beneficiary is expected to return to his or her original custodian.

DAA Condition – A medically determined drug addiction and/or alcoholism disorder that is not the basis for a finding of disability.

Incapable – An SSA determination that a beneficiary is unable to manage or direct the management his or her funds. This incapability determination is based on all available evidence and is used to support a need for a representative payee. An incapable beneficiary is not always “legally incompetent”.

Legal Guardian - Someone appointed by a court of law to have responsibility for a minor or an incompetent adult. Some forms of legal guardianship refer only to responsibility for the financial affairs of the child or incompetent adult. The legal guardian can be the payee for a beneficiary or someone else can serve as the payee. This individual will be able to furnish court documents to support this decision.

Legal Incompetence - A court's decision that a beneficiary is unable to manage his or her affairs. A beneficiary found to be legally incompetent must have a payee. SSA requires a copy of the court ruling.

Power of Attorney - This is a legal arrangement in which a person grants someone else authority to sign legal documents or make financial transactions for him or her. It need not involve capability or competence. SSA does not recognize a power of attorney for purposes of managing a beneficiary's funds.