What Are Representative Payee Accounts A representative payee account is a unique banking arrangement that allows for the management of Social Security or Supplemental Security Income (SSI) payments on behalf of those unable to manage their own money. Typically, this would be the representative payee — an individual or organization that the Social Security Administration (SSA) has designated to manage funds on behalf of your loved one.
Duties of a Representative Payee:
Money needs to be used in an appropriate way both with financial management (this takes a percentage of the payment and will disperse some funds directly to the facility) as well as allowable items by SUPPLEMENTAL SECURITY PRODUCTS (housing, meals, medical expenses, etc).
Receipts: The payee should maintain a good record of all transactions and expenses. This creates transparency and accountability, as the SSA can demand reports on where and how much these monies are used.Representative Payee (ad)
Legal Definition: Only parties who are authorized by the SSA to serve as representative payees can actually act in that capacity. This is not to be confused with having power of attorney or being a joint account holder.
Types of Accounts:
Individual Accounts: Normally established in the name of the beneficiary, but PAYEE managed.
Family member payee for multiple beneficiaries sharing a common account (collective accounts)
Takeaway: Knowing the ownership / management of a rep payee account is critical to making sure that benefits are used as they were supposed to and in the best interest of those receiving them. Beneficiaries or payees are encouraged to reach out to their bank for help or contact the SSA directly if they need any more of an assist.
