What can a representative payee not do?

It doesn't give the payee any right to sign legal documents on behalf of the beneficiary—other than Social Security documents—or give him or her power of attorney. Falsify benefit reports. Representative payees must keep detailed records and file accurate reports with the Social Security Administration every year.

What are the rules of a payee?

What can a payee not do?

When can a payee withhold money?

Your Representative Payee Cannot Withhold Funds as Punishment. The funds in a beneficiary's account are to be used for the beneficiary only. Period. The representative payee cannot make decisions about the funds that are not in the best interests of the beneficiary.

What power does a payee have?

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.

Representative Payees: Things You Can't Do

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.

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.

Does SSI track your spending?

A special note about SSI payments

We don't count all resources. However, some items you buy could cause the recipient to lose their SSI payments. Any money you don't spend could also count as a resource.

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.

What can a rep payee spend money on?

After paying for the disabled person's food, shelter, clothing, medical and dental costs, and any rehab expenses, the representative payee can spend disability benefit money on personal comfort items and recreation costs (such as outings, movie tickets, or magazine subscriptions).

What are the rules of a SSI payee?

Your representative payee must use your benefits to pay for your needs. These could include payment for food, shelter, clothes, medical care and personal comfort items. Also, your representative payee must tell SSA of events that could change the amount of, or affect your right to receive, benefits.

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.

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.

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.

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.

Can you change your representative payee?

To change your rep payee, you must fill out an application at your local SSA office. The person you select must submit a letter saying he or she is willing to serve as your rep payee. He or she must be able to prove who they are.

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.

Can a representative payee open a bank account?

To open a representative payee checking account, you'll need to choose a local bank with the most favorable terms (no monthly account fees, a free first set of checks, etc.). You may wish to call the bank ahead of time to make an appointment and to inquire as to the documentation needed to open the account.

Can Social Security look at 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.

How can I hide money from SSI?

How much money can a person on disability have in the bank?

How Much Money Can I Have in the Bank if I'm on Disability? You can have up to $2,000 in cash or in the bank and still qualify for, or collect, SSI (Supplemental Security Income).

How much money can you have in the bank on Social Security?

The limit for countable resources is $2,000 for an individual and $3,000 for a couple.

Can a rep payee have online access?

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

Who can take money from a bank account?

If one of your debts goes unpaid, a creditor—or a debt collector that it hires—may obtain a court order to freeze your bank account and pull out money to cover the debt. The court order itself is known as a garnishment. The court order normally comes after a debt collector sues you and then wins a judgment against you.

What happens to a rep payee account when the beneficiary dies?

If the beneficiary dies, any saved benefits belong to his or her estate. They must be given to the legal representative of the estate or otherwise handled according to state law. If you need information about state law, contact the probate court or an attorney.