When someone you care about can't manage their own Social Security benefits—whether due to age, disability, or mental health challenges—stepping in as their representative payee can help protect them financially. But becoming a representative payee isn't as simple as just offering to help. Social Security has a formal process to ensure that vulnerable people's benefits are managed responsibly.
In this article, we'll cover:
- What a representative payee is and does
- Who can serve as a representative payee
- The application process step by step
- What Social Security looks for when approving payees
- Your responsibilities once appointed
- How to set up banking and handle the money
What Is a Representative Payee?
A representative payee is someone appointed by Social Security to receive and manage benefits on behalf of a beneficiary who cannot manage their own finances. This arrangement exists to protect vulnerable people—including children, adults with disabilities, and elderly individuals—from financial exploitation or mismanagement.
As a representative payee, you don't own the money. You're a fiduciary, meaning you hold and manage someone else's funds for their benefit. Every dollar must be used for the beneficiary's needs: food, housing, clothing, medical care, personal necessities, and other expenses that support their well-being.
Representative payees manage benefits for roughly 8 million Social Security beneficiaries. Most are family members or close friends, though professional payees and organizations also serve in this role.
Who Can Be a Representative Payee?
Social Security prefers to appoint someone who knows the beneficiary and has their best interests at heart. The order of preference generally follows this pattern:
For adults, Social Security first looks to a spouse or other relative who lives with the beneficiary or has custody. Then they consider a legal guardian or someone with power of attorney who also has custody. After that come relatives who don't live with the beneficiary, then close friends, and finally professional or organizational payees.
For children, parents or legal guardians come first. Then other relatives, followed by professional or organizational payees if no suitable family member is available.
Who cannot serve: You cannot be a representative payee if you have a felony conviction for certain crimes (particularly financial crimes or crimes against the person you'd be managing), if you've been removed as a representative payee for misuse, or if you owe money to Social Security that you're not repaying.
The Application Process
Step 1: Gather information. Before applying, collect information you'll need: the beneficiary's name, Social Security number, date of birth, and address. Also gather your own personal information, including your Social Security number.
Step 2: Complete the application. You'll need to file Form SSA-11, Request to be Selected as Payee. This form asks about your relationship to the beneficiary, your qualifications to serve, your criminal history, and how you plan to use the benefits.
You can complete this form in person at a Social Security office, online (for some situations), or by phone by calling 1-800-772-1213.
Step 3: Provide required documentation. Social Security may ask for your photo ID, proof of your relationship to the beneficiary (if applicable), evidence of your authority if you're a legal guardian, and information about where the beneficiary lives and who cares for them.
Step 4: Interview. A Social Security representative will interview you—either in person, by phone, or by video—to assess your suitability. They'll ask about your relationship with the beneficiary, your understanding of the representative payee responsibilities, how you plan to manage and use the funds, and whether you have any conflicts of interest.
Step 5: Wait for a decision. Social Security will investigate your background, consider any other applicants, and make a decision. If approved, you'll receive an official appointment letter. If denied, you can appeal the decision.
The entire process typically takes a few weeks to a couple of months, depending on the complexity of the situation and how backed up your local Social Security office is.
What Social Security Looks For
When evaluating potential representative payees, Social Security considers several factors.
Relationship and involvement: How well do you know the beneficiary? How often do you see them? Are you already involved in their care?
Understanding of the role: Do you know what a representative payee does? Do you understand that the money belongs to the beneficiary and must be used for their needs?
Stability and reliability: Do you have a stable living situation? Are you organized enough to manage someone else's finances and keep records?
Absence of conflicts: Will you benefit improperly from this arrangement? Are there any reasons you might not act in the beneficiary's best interest?
Criminal background: Certain criminal convictions disqualify you automatically. Others may be considered depending on the circumstances.
Proximity to the beneficiary: Being geographically close to the beneficiary makes it easier to understand and meet their needs, though long-distance representative payee arrangements do exist.
Your Responsibilities as Representative Payee
Once appointed, you take on significant responsibilities.
Use benefits for the beneficiary's needs. This includes current maintenance like food, clothing, housing, and medical care. It also includes personal comfort items that improve their quality of life. After current needs are met, you can save for future needs.
Keep records. Track all income and expenditures. Save receipts, especially for larger purchases. You'll need this documentation for your annual report and in case Social Security has questions.
Report to Social Security. Each year, you must complete a Representative Payee Report (Form SSA-6230 for individuals or SSA-6234 for organizations) accounting for how you used the benefits. Failure to file this report can result in suspension of payments.
Notify Social Security of changes. If the beneficiary moves, starts working, enters or leaves a care facility, or their condition changes, you must report it. Changes in your own circumstances that affect your ability to serve must also be reported.
Keep funds separate. The beneficiary's money cannot be mixed with your own funds. You need a dedicated representative payee bank account.
Act in the beneficiary's best interest. This seems obvious, but it means prioritizing their needs over your convenience, consulting them on decisions when possible, and never using their money for your own purposes.
Setting Up Banking
One of your first tasks as a new representative payee is opening a dedicated bank account. This account must be titled properly to show the representative payee relationship—typically in the format "Your Name, Representative Payee for Beneficiary's Name."
You'll need your representative payee appointment letter, your ID, and the beneficiary's information to open the account. The beneficiary doesn't need to be present.
Once the account is open, contact Social Security to set up direct deposit. Benefits arriving directly in your representative payee account ensures you receive them promptly and have clear records of deposits.
Choose a bank that understands representative payee accounts, doesn't charge excessive fees, and provides tools to help you track spending—you'll thank yourself when it's time to complete your annual report.
Purple was built specifically for representative payees like you. We understand the requirements, make account opening simple, and provide tools to help you track spending and stay organized—all with no monthly fees.