What Is A Representative Payee?
A representative payee is a person or organization SSA selects to receive and manage benefits on behalf of an incapable or legally incompetent beneficiary.
When Does SSA Select A Representative Payee?
When we determine a beneficiary is unable to manage or direct the management of his or her funds, we select either an individual or an organization to serve as a representative payee. If we determine a representative payee is necessary, we say these beneficiaries are incapable of managing their benefits.
Must A Beneficiary Be Declared Legally Incompetent Before A Representative Payee Is Selected?
No. While it is true that a legally incompetent beneficiary must have a payee, we may determine that other beneficiaries need a payee as well.
We initially presume that all legally competent adult beneficiaries are capable of managing or directing the management of their funds. The facts of a case may convince us that a legally competent beneficiary is not capable and we will select a payee.
We also generally consider beneficiaries under the age of 18 incapable of managing their own funds and in need of a payee.
What Will Cause SSA To Select A Representative Payee?
We will not select a representative payee unless we have convincing evidence that an adult beneficiary is incapable of managing or directing the management of his or her funds. (See §§ 1604-1607 for a discussion of evidence.)
What Is SSA’s Policy On Appointment Of Representative Payees?
Our policy is that a legally competent adult beneficiary has the right to manage their own funds and we must pay them directly. However, if the evidence shows a beneficiary is unable to manage or direct the management of payments in his or her best interest, we will pay benefits through a representative payee.
