When someone receiving Social Security benefits can't manage their own finances — whether due to age, disability, or a medical condition — Social Security may appoint a representative payee to handle their funds. If you're a family member, friend, or caregiver considering this role, it's important to understand what's involved before you apply. Being a representative payee is a serious responsibility, but it's also one of the most meaningful ways you can help someone you care about.
In this article, we'll cover:
- What a representative payee is and what they do
- Who can become a representative payee
- The application process step by step
- Your responsibilities once appointed
- Annual reporting requirements
- Tools that can make the job easier
What Is a Representative Payee?
A representative payee is a person or organization appointed by the Social Security Administration to receive and manage Social Security or SSI benefits on behalf of someone who cannot manage their own money. The person whose benefits you manage is called the beneficiary.
Representative payees are most commonly appointed for minor children, adults with severe cognitive or mental health disabilities, and elderly individuals who can no longer handle their finances. Social Security makes the determination about whether someone needs a payee based on medical evidence and other information.
It's important to understand that being a representative payee is different from having power of attorney. Social Security does not recognize power of attorney for the purpose of managing benefits — even if you have legal authority over someone's finances in other areas, you still need to be formally appointed as their representative payee to manage their Social Security or SSI payments.
Who Can Become a Representative Payee?
Social Security gives preference to certain types of payees. Family members and close friends who have a strong relationship with the beneficiary are generally preferred. Parents of minor children are the most common payees. Spouses, adult children, and other relatives who are involved in the beneficiary's care are also frequently appointed.
Social Security conducts a background check on all prospective payees, including a review of criminal history and any prior representative payee performance. Individuals who have been convicted of certain crimes — particularly those involving fraud or misuse of benefits — may be disqualified.
Organizations can also serve as representative payees, including social service agencies, nursing homes, and other qualified institutions. These are typically used when no suitable individual is available.
How to Apply
The application process begins by contacting your local Social Security office. You'll need to complete Form SSA-11, the Request to be Selected as Payee. This form asks for information about your relationship to the beneficiary, your own financial situation, and how you plan to use the benefits.
You'll need to visit the Social Security office in person for an interview. Bring a government-issued photo ID, your Social Security number, and any documentation about the beneficiary's living situation and needs. Social Security may also request medical evidence supporting the need for a payee if it hasn't already been established.
The process typically takes a few weeks, though it can be faster or slower depending on the complexity of the case and the local office's workload. Once approved, Social Security will redirect the beneficiary's payments to an account you control as the payee.
Your Responsibilities as a Representative Payee
Your primary duty is to use the beneficiary's funds for their current needs: housing, food, clothing, medical care, and personal items. If there are funds left over after meeting these needs, you should save them for the beneficiary's future use.
You must keep the beneficiary's money separate from your own. This is one of the most important rules. Mixing funds is a red flag for Social Security and can result in removal as payee or even criminal charges. Open a dedicated bank account titled to show your payee relationship — for example, "Jane Doe by John Smith, representative payee."
You're expected to keep records of how you spend the beneficiary's money. Save receipts, bank statements, and any documentation that shows where the funds went. Good recordkeeping protects both you and the beneficiary.
If the beneficiary receives SSI, you're also responsible for ensuring their countable resources stay below the $2,000 limit (or $3,000 for couples). This means monitoring bank balances, reporting changes in income or living situation, and understanding what counts as a resource.
Annual Reporting
Social Security requires most representative payees to file an annual accounting report — Form SSA-6230 for individual payees. This report asks you to document how you spent the beneficiary's benefits over the past year, including amounts spent on food, housing, medical care, and personal needs, as well as how much you saved on their behalf.
Filing this report accurately and on time is critical. Failure to file or filing inaccurate reports can result in Social Security removing you as payee. The form isn't complicated, but it's much easier if you've been keeping good records throughout the year.
Making the Job Easier
Being a representative payee is rewarding, but the administrative burden is real. Keeping funds separate, tracking spending, monitoring resource limits for SSI recipients, and filing annual reports takes effort. The right tools can lighten the load significantly.
A bank account designed for representative payees can help you keep the beneficiary's funds organized, track spending by category, and stay on top of resource limits — all without juggling spreadsheets or shoeboxes full of receipts.
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, track spending, and stay compliant with Social Security rules.