When someone can't manage their own benefits due to age, disability, or illness, a trusted person can step in to help. For Social Security and SSI, this person is called a representative payee. For VA benefits, they're called a fiduciary. Both roles come with important responsibilities.
In this article, we'll cover:
- What representative payees and fiduciaries do
- Who can serve in these roles
- How to apply to become a representative payee (SSA)
- How to become a VA fiduciary
- Key responsibilities and compliance requirements
1. What Representative Payees and Fiduciaries Do
Both representative payees and fiduciaries receive benefit payments on behalf of someone who cannot manage their own finances. Their job is to:
- Use the funds for the beneficiary's current needs (housing, food, medical care, clothing)
- Save any remaining funds for the beneficiary's future needs
- Keep accurate records of all spending
- Report to the appropriate agency on how funds were used
The key difference is which agency they work with: representative payees are appointed by the Social Security Administration, while fiduciaries are appointed by the Department of Veterans Affairs.
2. Who Can Serve in These Roles
For SSA representative payees:
- Family members (spouse, parent, adult child, sibling)
- Friends or other individuals who know the beneficiary
- Social service agencies
- Nursing homes or other care facilities
- Organizational payees (nonprofits that specialize in payee services)
For VA fiduciaries:
- Family members
- Court-appointed guardians or conservators
- Attorneys
- Trust companies
- Authorized VA fiduciary organizations
Important: Both the SSA and VA conduct background checks and evaluate whether the proposed payee or fiduciary is suitable. Having a criminal record, history of financial mismanagement, or conflict of interest can disqualify you.
3. How to Apply to Become a Representative Payee (SSA)
The SSA determines whether someone needs a representative payee. If they do, here's how to apply:
Step 1: Contact Social Security Call 1-800-772-1213 or visit your local Social Security office to start the process. Let them know you want to apply to be a representative payee.
Step 2: Complete the application Fill out Form SSA-11 (Request to be Selected as Payee). You'll need to provide:
- Your personal information and relationship to the beneficiary
- Information about your income and financial situation
- Details about how you plan to manage the beneficiary's funds
- References who can speak to your character
Step 3: Attend an interview The SSA will schedule an in-person interview to evaluate your suitability. Be prepared to explain why you're the right person to manage benefits.
Step 4: Complete a background check The SSA will verify your identity and check for any disqualifying factors.
Step 5: Receive the decision If approved, you'll receive an official notice and instructions for setting up benefit payments.
4. How to Become a VA Fiduciary
The VA fiduciary process works differently:
Step 1: VA determines need The VA's field examination process determines whether a veteran needs a fiduciary. This happens when there's evidence the veteran cannot manage their finances.
Step 2: VA contacts proposed fiduciary If you've been recommended as fiduciary (by the veteran, family, or a court), the VA will contact you.
Step 3: Complete the application Submit VA Form 21-4138 (Statement in Support of Claim) with a letter explaining your relationship and qualifications.
Step 4: Background investigation The VA conducts a thorough investigation, including:
- Credit check
- Criminal background check
- Interview about your qualifications
- Review of your proposed management plan
Step 5: Appointment and bond requirement If approved, you may need to obtain a surety bond depending on the benefit amount. The VA will provide specific instructions.
5. Key Responsibilities and Compliance Requirements
Both roles require ongoing accountability:
For SSA representative payees:
- File an annual Representative Payee Report (Form SSA-6230 or SSA-6233)
- Keep records of all spending
- Notify SSA of any changes in the beneficiary's situation
- Never mix the beneficiary's funds with your own
- Maintain a separate account titled correctly as a rep payee account
For VA fiduciaries:
- Submit an annual accounting to the VA
- Keep detailed records of income and expenses
- Maintain the beneficiary's funds in a dedicated account
- Report any significant changes immediately
- Undergo periodic VA reviews and audits
Important: Misusing funds in either role can result in removal, repayment requirements, and criminal charges. Take these responsibilities seriously.
6. How Purple Helps Payees and Fiduciaries Manage Benefits
Purple is built to support representative payees and fiduciaries with compliant, organized benefit management:
Properly titled accounts Purple accounts are set up correctly from the start, meeting SSA and VA requirements for fiduciary accounts.
Spending categories Track spending by category to simplify annual reporting. See exactly where funds go each month.
Complete transaction history Access records whenever you need them—no more digging through paper statements.
Separate accounts for each beneficiary If you manage benefits for multiple people, keep each person's funds completely separate.
Export for reporting Download transaction records in formats ready for SSA or VA reporting.
Real-time alerts Get notified of transactions as they happen so you always know how funds are being used.