|
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 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
happen, 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.
|
|