A term that many people are not familiar with when it comes to Social Security disability benefits is advance designation. The reason very few people are aware of advance designation is because it is a fairly new option to allow Social Security beneficiaries to choose someone to serve as their representative payee should they become unable to manage their own benefits that was passed in 2018.
If a beneficiary becomes unable to manage their own benefits due to medical impairments, Social Security will determine a sufficient representative payee for the beneficiary to manage benefits, but the advance designation provision allows beneficiaries to choose their representative payees ahead of time before they become unable to manage their own benefits. Below is a description from Social Security about advance designation.
You should be aware of another type of representation called Advance Designation. This relates to the Strengthening Protections for Social Security Beneficiaries Act of 2018, which was signed into law on April 13, 2018.
Advance Designation allows capable adult and emancipated minor applicants and beneficiaries of Social Security, Supplemental Security Income, and Special Veterans Benefits to choose one or more individuals to serve as their representative payee in the future, if the need arises.
To help protect what’s important to you, we now offer the option to choose a representative payee in advance. In the event that you can no longer make your own decisions, you and your family will have peace of mind knowing you already chose someone you trust to manage your benefits. If you need a representative payee to assist with the management of your benefits, we will first consider your advance designees, but we must still fully evaluate them and determine their suitability at that time.
You can submit your advance designation request when you apply for benefits or after you are already receiving benefits. You may do so through your personal my Social Security account, by telephone, or in person.
