What are the rights of a representative payee?

As a representative payee, you only have the power to handle the Social Security benefit for your friend or loved one (the beneficiary) and not any other money or property for that person unless some other document or government agency appoints you to do so.

What can a representative payee not do?

The representative payee cannot make decisions about the funds that are not in the best interests of the beneficiary. A representative payee can never refuse to care for the beneficiary as punishment for something the beneficiary has done.

What can a representative payee do?

A representative payee (payee) manages benefit payments for our beneficiaries who are incapable of managing their Social Security or Supplemental Security Income (SSI) payments.

What are the rights of a payee?

Your payee receives your payments for you and must use the money to pay for your current needs. After your payee pays those expenses for you, your payee can use the rest of the money to pay any past-due bills you may have, provide entertainment for you, or save the money for your future use.

Who is the owner of a representative payee account?

A representative payee bank account is an account used by an appointed person or organization to manage the finances of a Social Security beneficiary. Representative payees are chosen by the Social Security Administration to administer the account for a beneficiary—usually an older or disabled person.

Representative Payees Explained

Can a payee go to jail?

Payees are required to spend the beneficiary's money only on the payee's medical needs and personal expenditures. If a representative is caught misusing a beneficiary's funds, he or she will not only have to repay the beneficiary, but also face fines and even imprisonment if found guilty.

What happens if a payee misuse funds?

The penalty upon conviction for a payee's misuse of funds may be a fine of up to $250,000, imprisonment up to 10 years, or both.

How do I get rid of a representative payee?

When you want to change your rep payee, go to your Social Security Administration field office and request a change of payee. You will be given a form to fill out, and guidance will be provided if necessary.

Is a representative payee responsible for overpayment?

Generally, the overpaid person (including a representative payee) is responsible for repayment of an overpayment. If the overpaid person dies, his or her estate, or the beneficiaries of the estate, is responsible for repayment of the overpayment.

How do I report Social Security payee abuse?

Report fraud, waste, or abuse of Social Security Administration Programs such as Retirement, Survivors, Disability and Supplemental Security Income via the Internet. 1-800-229-6297.

Does SSI monitor your bank account?

If you receive benefits through the federal Supplemental Security Income (SSI) program, the Social Security Administration (SSA) can check your bank account. They do this to verify that you still meet the program requirements.

Can a rep payee borrow money?

You cannot pay yourself for managing their money, and you cannot borrow it or lend it to anyone else; those would be conflicts of interest, which you must avoid. You should also do your best to make sure the beneficiary does not get scammed or mistreated.

What disqualifies you from being a payee?

REMEMBER: The Social Security Act prohibits anyone from serving as payee if he or she was ever convicted of a violation under section 208, 811, or 1632(a). This prohibition is permanent; that is, if an individual was ever convicted under one of these statutes, he or she is barred from serving as payee for life.

Can you spend disability money on anything?

Technically, there are no limits to what you can spend your social security disability benefits on (with a few exceptions). This is especially true if you are receiving Social Security Disability Insurance (SSDI) benefits, which are based on employment history and paid into through your payroll taxes.

Can a rep payee have online access?

Organizational representative payees are able to complete their Representative Payee Report online by using Business Services Online.

Can I spend my SSI on anything?

While you can use your SSI benefits for virtually anything that's legal, you must be wary of using the money in ways that can increase your resources. For example, purchasing luxury items is not prohibited, but it can increase your assets and may push your resources past the limit.

What happens when someone dies and they owe Social Security money?

If the overpaid beneficiary or payee has died, the estate is liable for repayment. We may ask the legal representative to make a refund, or we may withhold benefits due the estate. We may also require the recipients of the estate to refund an overpaid amount to the extent of funds received from the estate; and.

How do you fight Social Security?

You can ask SSA to reconsider their decision by filing SSA Form 561, "Request For Reconsideration." You can get this form at your local Social Security office, download the form, or file an online appeal. You must submit your Request for Reconsideration within 60 days of the date you get the written denial from SSA.

How many years can Social Security go back for overpayment?

For Title II Social Security benefits, the time period is 4 years. Only in very limited circumstances, such as fraud, may SSA assess an overpayment beyond the above time limits. Note that this time limit applies only to the original determination that there has been a benefit overpayment.

Does a payee get paid?

Your organization can charge the beneficiary a fee for any month in which: You are authorized in writing by SSA to collect a fee, AND. You are the payee of record and the beneficiary receives a Social Security and/or SSI payment, AND. You provided payee services for that month.

Will my stimulus check go to my payee?

Stimulus payments belong to beneficiaries

The SSA issued guidance to representative payees indicating that stimulus payments are not coming from the agency but from the IRS. As such, the payments belong to the beneficiaries, and representative payees are not responsible for managing the money.

Does a representative payee file taxes?

If a levy is received for an individual who is receiving benefits on behalf of someone else as a representative payee, it will be returned to the IRS.

How do I report a payee?

Reporting Potential Violations

If you feel the Representative Payee has in some fashion misused the benefits being issued for the beneficiary, contact the OIG Fraud Hotline. You should provide as much identifying information as possible regarding the suspect.

Does Social Security tell you when you are being investigated?

The SSA will not tell you that you are under investigation. Find out more about SSA investigations and Cooperative Disability Investigations (CDI) here.

What is considered Social Security abuse?

Filing claims under another person's Social Security number (SSN). Scamming people by impersonating our employees. Bribing our employees. Misusing grant or contract funds.