When someone receiving Social Security benefits can no longer manage their finances due to disability, illness, or cognitive decline, a representative payee can step in to help. If you need to become a rep payee for a family member or loved one, here's how the process works.
In this article, we'll cover:
- What a representative payee does and who needs one
- Who can serve as a representative payee
- The application process step by step
- Required documentation and background checks
- Responsibilities once you're appointed
When Is a Representative Payee Needed?
Social Security appoints representative payees when they determine that a beneficiary cannot manage their own finances. This typically happens when someone has a severe mental illness, dementia or cognitive decline, a developmental disability, is a minor child, or is otherwise unable to handle money responsibly.
The beneficiary doesn't choose to have a rep payee—Social Security makes this determination based on medical evidence and other information. However, the beneficiary (or someone on their behalf) can suggest who should serve as their payee.
Who Can Be a Representative Payee?
Social Security prefers family members or close friends who know the beneficiary and their needs. Acceptable payees typically include spouses, parents, adult children, other relatives, close friends, and legal guardians.
Organizations can also serve as representative payees, including social service agencies, nursing homes, and designated organizational payees. SSA generally prefers individual payees for people living in the community.
Certain people cannot serve as representative payees, including anyone convicted of certain crimes, anyone who previously misused a beneficiary's funds, and in most cases, people who receive payments for providing the beneficiary's care.
The Application Process
To become a representative payee, you'll need to complete Form SSA-11, the Representative Payee Application. You can't submit this form online—you must apply in person at a Social Security office or, in some cases, over the phone.
Here's what to expect:
Step 1: Contact your local Social Security office to schedule an appointment. Explain that you need to apply to become a representative payee.
Step 2: Gather required documentation including your government-issued ID, Social Security number, information about your relationship to the beneficiary, and the beneficiary's information.
Step 3: Complete the interview. SSA will ask questions about your relationship with the beneficiary, your ability to manage their finances, and how you plan to use their benefits.
Step 4: Undergo a background check. SSA will verify your identity and check for any disqualifying factors.
Documentation You'll Need
Bring the following to your appointment: your driver's license or state ID, your Social Security card or number, the beneficiary's Social Security number, proof of your relationship (if applicable), and any court documents if you're a legal guardian.
If the beneficiary is present, they should bring their ID as well. If they can't attend due to their condition, be prepared to explain why.
Your Responsibilities as Representative Payee
Once appointed, you must use the beneficiary's funds only for their needs—housing, food, clothing, medical care, and personal items. You cannot mix their funds with your own money and should maintain a separate account titled to show your rep payee status.
You're required to keep records of how you spend the beneficiary's money and report to Social Security annually on Form SSA-6230. SSA may review your accounting at any time.
You must also report any changes in the beneficiary's circumstances, including changes in living situation, income, resources, or medical condition.
Managing someone else's benefits is a big responsibility. Purple makes it easier with checking accounts designed for representative payees, helping you keep funds separate and track spending.