If you are the caretaker of a Social Security recipient who is incapable of handling his or her money, you can ask the Social Security Administration (SSA) to designate you as a representative payee. A representative payee has the responsibility and authority to manage another person’s Social Security benefits. It does not, however, entitle you to spend the beneficiary’s check as you wish.
As representative payee, you must:
- Act solely in the best interest of the beneficiary. Money from his or her Social Security check is not to be used for any purpose other than his or her needs. Do not lend out or borrow the money. Protect the beneficiary from being taken advantage of or scammed out of his or her money.
- Keep money from the Social Security check separate from your own money. Do not sign any contracts or open any accounts for the beneficiary. If you must open an account or sign any documents for the beneficiary, sign the beneficiary’s name, followed by “your name, Representative Payeee”, so it is clear that you are acting on behalf of the beneficiary.
- Keep receipts and records of all expenses paid with the beneficiary’s money. Submit an annual report of your expenditures to the SSA as well.
If you are not a relative, be sure to keep the beneficiary’s family members (if any) informed of all you do for the beneficiary as their representative payeee. This will prevent any misunderstandings in regards to your management of the beneficiary finances.
