POD Designation Explanation on Representative Payee Accounts It is important to be aware of the restrictions in Payable on Death beneficiaries when managing a representative payee account. Legal Impediment Under SSA rules, the payee cannot designate a POD for the account funds. This is because a representative payee is a fiduciary. The fiduciaries, as defined by the SSA, are charged with managing the funds and spend it solely on the needs of the beneficiary, who may lack the capacity to make independent financial choices. Fiduciary Responsibilities. In general, a Representative Payee is responsible for supplementing the beneficiary’s needs with their funds.representativepayee (ad) SSA says that any amount not spent for the beneficiary’s needs should be preserved in an interest-bearing account to cater for future needs. However, the funds are still not within the payee’s discretion to spend as they wish. State Law Provision Similar to the other representative payee accounts provisions, state laws vary. Even with federal restrictions, state laws may permit such designations. However, the SSDA prohibits P.O.D. designations. Therefore, to understand more one should seek legal counsel or a financial advisor with experience in order to make advance inquires.
