How to Appoint a Representative Payee or Fiduciary for VA or SSA Benefits

Purple
Aug 7
3 min read

What to know if a loved one needs help managing their disability payments

Introduction: When Someone Needs Help Managing Benefits

If you or a loved one receives SSI, SSDI, or VA disability benefits, there may come a time when help is needed to manage those payments responsibly.

That’s where representative payees (for Social Security) and fiduciaries (for the VA) come in.

In this guide, we’ll explain:

✅ The difference between a rep payee and a fiduciary

✅ How to appoint one

✅ What the responsibilities are

✅ How Purple supports families and care providers managing benefits

1. What’s the Difference Between a Rep Payee and a Fiduciary?

Both roles help manage someone’s government benefits — but they’re appointed by different agencies:

Representative Payee (SSA): Manages SSI or SSDI payments for someone who can’t manage money on their own.
Fiduciary (VA): Manages VA benefits for a veteran or dependent deemed unable to handle their funds.

✅ In both cases, the person receiving benefits retains full eligibility. The appointed party just helps handle the money.

2. When Is a Payee or Fiduciary Needed?

These roles may be needed when someone:

Has a developmental or intellectual disability
Has dementia or another cognitive condition
Struggles with severe mental illness
Is a minor child receiving benefits
Faces challenges managing money independently

📌 The goal is to ensure the person’s basic needs are met — housing, food, health care — and that their benefits aren’t misused or lost.

3. How to Appoint a Representative Payee for SSA Benefits

To request a rep payee, follow these steps:

Contact the Social Security Administration (SSA):
Call 1-800-772-1213 or visit your local SSA office.
Submit an Application:
The proposed payee must fill out Form SSA-11 and undergo an interview.
SSA Review:
SSA will determine if the individual needs a payee and if the proposed payee is suitable.

💡 In some cases, SSA will automatically assign a payee, especially if the beneficiary is a minor or is declared legally incompetent.

4. How to Appoint a VA Fiduciary

The VA process is slightly different:

Trigger Event:
A VA doctor, relative, or other official raises concerns about the veteran’s ability to manage money.
VA Evaluation:
The VA may request a medical opinion and conduct a field examination.
Fiduciary Appointment:
The VA chooses someone — often a family member — and provides training on how to manage VA funds.
Oversight:
Fiduciaries may need to submit annual accounting reports to ensure funds are being used properly.

📌 Learn more at va.gov/fiduciary

5. Responsibilities of a Payee or Fiduciary

Whether you’re managing SSI, SSDI, or VA payments, you must:

Use the money for the beneficiary’s needs (not your own)
Keep accurate records of spending
Report any changes to SSA or VA (address, income, hospitalization, etc.)
Avoid mixing funds with your own

⚠️ Misuse of funds can lead to fines, removal, or even criminal charges.

6. How Purple Supports Payees and Fiduciaries

💜 Multi-Account Support

Manage multiple Purple checking accounts under one login — perfect for parents, guardians, or payee services.

💜 Deposit Tracking

See when SSI, SSDI, or VA funds arrive — with clear labels and notifications.

💜 Spending Controls

Tag and categorize expenses to stay compliant with SSA or VA rules.

💜 Secure Document Storage

Upload and save benefit letters, receipts, or accounting records in the app.

💜 Companion AI Support

Ask:

“What can I spend these funds on?”
“Do I need to report this change?”
“Where can I upload my annual accounting?”

FAQs About Appointing a Payee or Fiduciary

⚠️ Can I choose who becomes my payee or fiduciary?

You can suggest someone — but SSA and VA must approve them.

⚠️ Can I switch payees or fiduciaries later?

Yes. A new application or field exam is required.

⚠️ Can an organization act as a rep payee?

Yes — many nonprofits and residential facilities serve in this role.

Conclusion: The Right Support, At the Right Time

If someone you care about receives disability or veteran benefits but can’t manage them alone, appointing a rep payee or fiduciary can help:

✅ Prevent misuse

✅ Ensure their needs are met

✅ Keep benefits safe and secure

💜 Open a Purple account today to manage benefits with confidence — for yourself or someone you support.