Social Security Representative Payee: When and How to Become One

A representative payee is a person or organization appointed by Social Security to receive and manage benefits for someone who can't manage their own finances. The payee receives the beneficiary's check and uses it to pay for their needs.

• Receives Social Security checks on behalf of the beneficiary
• Must use funds only for the beneficiary's current needs
• Can save excess funds for the beneficiary's future needs
• Must keep records and report annually to Social Security
• Usually a family member, but can be organization or friend

Social Security appoints representative payees for beneficiaries who lack the capacity to manage their own benefits. This typically includes:

• Adults with severe mental illness or cognitive impairment
• Adults with dementia or Alzheimer's disease
• Adults with intellectual disabilities
• Children under 18 (parent/guardian automatically payee)
• Adults with severe physical disabilities affecting mental function
• Adults with substance abuse problems affecting financial judgment

The process requires an in-person visit to your local Social Security office. You cannot apply online.

1. 1Gather required documents: your ID, beneficiary's information
2. 2Visit local Social Security office and request payee application
3. 3Complete Form SSA-11 (Request to be Selected as Payee)
4. 4Provide references (not relatives) who can verify your character
5. 5Social Security may conduct background check
6. 6Wait for determination (typically 2-4 weeks)
7. 7Once approved, set up dedicated bank account for benefits
8. 8Begin receiving benefits and keeping records

Being a payee is a serious legal responsibility. You must act in the beneficiary's best interest at all times.

• **Use funds for beneficiary only**: Housing, food, clothing, medical care, personal needs
• **Keep careful records**: Save receipts, bank statements, documentation
• **Maintain a dedicated account**: Benefits should be in account titled as payee
• **Save excess funds**: Money not needed now should be saved for beneficiary
• **Report changes**: Notify SSA of address changes, hospitalization, improvement in condition
• **Never mix funds**: Your money and their benefits must stay separate

Representative payees must report to Social Security how benefits were used. Social Security sends Form SSA-6230 annually.

• Report how much was received in benefits
• Report how funds were spent (categories, not line items)
• Report any changes in living situation
• Report any changes in beneficiary's condition
• Report any saved funds and where they're held

A representative payee isn't the only option for helping someone manage finances. Consider these alternatives based on the situation.

• **Power of Attorney**: If the person can still sign documents, a POA may be sufficient
• **Direct deposit to joint account**: You can help manage without formal payee status
• **Automatic bill pay**: Set up payments so money goes directly to needs
• **ABLE Account**: For disabled individuals, can receive SSI and save without losing benefits
• **Conservatorship**: Court-appointed control, more comprehensive than payee