What is a representative payee? Flashcards
What is a representative payee?
Answer: “A representative payee is a person or organization appointed by SSA to manage benefits for individuals unable to do so themselves.”
Explanation: “Representative payees are typically appointed for beneficiaries who are minors, legally incapacitated, or otherwise unable to manage their finances.”
Source: CFR §404.2010.
What are the duties of a representative payee?
Answer:
“1. Use benefits to meet the beneficiary’s current and future needs.”
“2. Maintain accurate records of how benefits are spent.”
“3. Report changes in the beneficiary’s circumstances to SSA.”
Explanation: “Payees have a fiduciary duty to act in the best interest of the beneficiary.”
“What happens if a representative payee misuses benefits?”
Answer: “SSA may remove the payee, require repayment of misused funds, or pursue legal action.”
Explanation: “Misuse of benefits is a serious violation of fiduciary responsibilities.”
Case Scenario: Tom is a representative payee for his son, who receives SSI benefits. Instead of using the funds for his son’s living expenses, Tom uses the money to pay his own debts.
Question: Is Tom’s use of the SSI benefits appropriate?
Answer: No, Tom is misusing the funds, as representative payees must use benefits solely for the beneficiary’s needs.
Legal Explanation: Representative payees have a fiduciary duty to use benefits only for the beneficiary’s current and future needs. Misuse can result in removal as payee, repayment demands, or legal action.
Key Resource: CFR §404.2035 – Duties of representative payees.
Key Takeaway: Representative payees must use benefits solely for the beneficiary’s needs and comply with SSA rules to avoid penalties.
Representative Payees:
Payees must use benefits solely for the beneficiary’s needs and comply with fiduciary duties.
