A “Heads-Up” for Representative Payees
Beneficiaries who are incapable of managing their Social Security or Supplemental Security Income (SSI) payments may elect, or have elected for them, a Representative Payee. This individual, generally family member or family friend, manages the payments on behalf of the beneficiary and assumes responsibility for keeping records of how the payments are spent or saved, and making all records available for review if requested by SSA. While all of the rules and reporting regulations are important to the welfare of the beneficiary, there are certain highly critical areas where designated representatives could potentially run afoul of the SSA rulebook. GoBankingRates contributor Vance Cariaga, in a post on their website, explains four of these pitfall areas and suggests ways to avoid missteps. Check his post out here.
And, while we’re on this subject, our AMAC Foundation Social Security Advisory Service often fields questions about the Representative Payee process, one of which deals with the misunderstanding that having an assigned Power of Attorney can take the place of a Representative Payee designation. Not so, says the SSA; Social Security privacy rules do not recognize power of attorney for negotiating federal payments, including Social Security or Supplemental Security Income (SSI) payments. If you need to know more about this subject, take advantage of our free-to-the-public Advisory Service, which you can learn more about on the AMAC Foundation website.