Representative Payee for Social Security: Complete Guide

If your aging parent has dementia, mental illness, or cognitive decline that prevents them from managing their finances, Social Security offers a solution: the representative payee program. As a representative payee, you can receive your parent's benefits directly and use them to pay for their care.

Unlike power of attorney (which your parent must sign while competent) or guardianship (which requires court proceedings), the representative payee designation comes directly from Social Security and only covers Social Security benefits—not other assets or accounts.

What Is a Representative Payee?

A representative payee is an individual or organization appointed by Social Security to receive benefits on behalf of someone who cannot manage their own money. The payee's job is to use those benefits to meet the beneficiary's needs.

What Benefits Can a Rep Payee Manage?

• Social Security retirement benefits
• Social Security disability benefits (SSDI)
• Supplemental Security Income (SSI)
• Survivor benefits

What a Rep Payee Cannot Do

• Access other bank accounts or assets
• Make medical decisions
• Sign legal documents on behalf of the beneficiary
• Manage non-Social Security income

When Is a Representative Payee Needed?

Social Security requires a representative payee when a beneficiary is determined to be incapable of managing their benefits. Signs that suggest a payee may be needed:

• Forgetting to pay bills or paying the same bill multiple times
• Falling victim to scams or giving money away inappropriately
• Unable to understand or manage finances due to dementia or cognitive decline
• Mental illness affecting judgment about money
• Unable to meet basic needs despite having sufficient income

Who Can Be a Representative Payee?

Social Security prefers to appoint payees in this order:

1. A spouse or other relative who has custody or shows strong concern for the beneficiary's well-being
2. A friend who has custody or shows strong concern
3. A public or nonprofit agency or institution
4. A private institution (nursing home, etc.)
5. People or organizations that receive a fee for services

Who Cannot Be a Representative Payee?

• Someone who has been convicted of certain crimes (especially fraud)
• Someone who has previously misused benefits
• Creditors of the beneficiary (with some exceptions)
• Someone whose own representative payee is an organization

How to Become a Representative Payee

Step 1: Contact Social Security

Call Social Security at 1-800-772-1213 or visit your local Social Security office. You'll need to request a payee application and schedule an interview.

Step 2: Complete the Application

You'll fill out Form SSA-11 (Request to be Selected as Payee). Information required includes:

• Your identifying information (name, address, Social Security number)
• Your relationship to the beneficiary
• Information about the beneficiary's living situation
• Whether you have custody of the beneficiary
• Your plan for managing the benefits

Step 3: Provide Documentation

Bring to your interview:

• Your government-issued photo ID
• Your Social Security card
• Proof of your relationship (if applicable)
• Medical evidence of the beneficiary's incapacity (doctor's statement, medical records)
• Information about the beneficiary's current living arrangements

Step 4: Interview

A Social Security representative will conduct an interview, either in person or by phone. They'll verify your information and assess your suitability as payee.

Step 5: Investigation

Social Security conducts a background investigation, including:

• Criminal background check
• Review of any prior payee history
• Verification of your identity and relationship
• Contact with the beneficiary (when possible)

Step 6: Decision and Notification

Social Security will notify both you and the beneficiary of the decision. If approved, benefits will be redirected to you, and you'll receive a letter explaining your responsibilities.

The process typically takes 30-60 days, though it can take longer if there are complications.

Representative Payee Responsibilities

Required Uses of Benefits

You must use benefits for the beneficiary's current maintenance needs, in this priority order:

1. Food and shelter: Rent/mortgage, utilities, groceries
2. Clothing: Appropriate clothing and shoes
3. Medical and dental care: Care not covered by insurance
4. Personal needs: Toiletries, recreation, and personal comfort items

Saving Excess Benefits

If benefits exceed current needs, you must save the excess for the beneficiary. Savings must be kept in:

• An interest-bearing account titled to show the beneficiary's ownership
• U.S. Savings Bonds (in the beneficiary's name)
• A special account that clearly identifies it as belonging to the beneficiary

Record Keeping

You must keep records of:

• All benefits received
• How benefits were spent (receipts, bills, bank statements)
• Any savings accumulated
• Changes in the beneficiary's circumstances

Reporting Requirements

You must notify Social Security of:

• Changes in the beneficiary's address or living situation
• Changes in the beneficiary's income or resources
• If the beneficiary enters or leaves an institution
• If the beneficiary's condition improves (they may no longer need a payee)
• If the beneficiary dies
• If your own address changes

Annual Accounting

Each year, you must complete a Representative Payee Report (Form SSA-6230) accounting for how you used the beneficiary's benefits. This form asks about:

• How much was spent on food and housing
• How much was spent on personal needs, clothing, medical care
• How much was saved
• Where savings are kept

Managing the Bank Account

How to Title the Account

The account should be titled to show:

• The beneficiary is the owner of the funds
• You are managing the funds as representative payee

Example: "John Smith by Jane Smith, Representative Payee"

Keep Funds Separate

• Never mix your own money with the beneficiary's benefits
• Never use the beneficiary's funds for your own expenses
• Keep a separate account solely for the beneficiary's Social Security

Using Direct Deposit

Benefits can be directly deposited into the representative payee account. This is faster and safer than paper checks.

Common Situations and Questions

Can I Be Paid for Being a Representative Payee?

Individual representative payees (family members, friends) generally cannot collect a fee. Only organizational payees specifically authorized by Social Security may charge fees, typically up to $47/month.

What If My Parent Lives in a Nursing Home?

Benefits are typically used to pay the facility. If your parent receives Medicaid, most of the Social Security benefit goes to the nursing home, with a small "personal needs allowance" ($30-100/month depending on state) kept for personal items.

What Happens to Savings If the Beneficiary Dies?

Conserved benefits belong to the beneficiary's estate. You must:

1. Notify Social Security of the death
2. Return any benefits received after the month of death
3. Turn over remaining conserved funds to the legal representative of the estate

Can the Beneficiary Appeal the Payee Appointment?

Yes. Beneficiaries have the right to appeal both the determination that they need a payee and the selection of the specific payee. Appeals must be filed within 60 days of the decision.

What If I Can No Longer Serve as Representative Payee?

Contact Social Security immediately. You'll need to:

• Submit a final accounting
• Transfer remaining benefits to the successor payee or Social Security
• Provide records to the new payee

Avoiding Problems as a Representative Payee

Do:

• Keep detailed records of all spending
• Save receipts for major purchases
• Keep benefits in a separate, properly titled account
• File annual reports on time
• Report changes promptly to Social Security
• Use benefits for the beneficiary's current needs first
• Save excess benefits in an interest-bearing account

Don't:

• Mix your money with the beneficiary's money
• Use benefits for your own expenses
• Lend the beneficiary's money to others
• Give large gifts from the beneficiary's funds
• Ignore reporting requirements
• Keep benefits in cash (where they can't be tracked)

Representative Payee vs. Other Options

Option	Covers	Process	Cost
Representative Payee	Social Security only	SSA application	Free
Power of Attorney	All finances	Document signing	$100-500
Guardianship	Everything	Court proceeding	$3,000-10,000+
Joint Bank Account	That account only	Bank paperwork	Free

Frequently Asked Questions

Resources

• Social Security Administration: ssa.gov - Official information and forms
• Representative Payee Guide: ssa.gov/payee - Detailed payee information
• Find Local Office: ssa.gov/locator - Schedule an appointment
• Phone: 1-800-772-1213 (TTY: 1-800-325-0778)