Representative Payee: What Is It and Does Your Senior Need It?


i-aging

If your elderly loved one is no longer able to handle his or her own finances, you may have heard the term “representative payee” mentioned once or twice. But what exactly is a representative payee, and how do you know if your senior needs one? The following information should help you make an informed decision about planning your loved one’s financial future.

What is a representative payee?

A representative payee, or rep payee, is someone who receives and manages Social Security, Supplemental Security Insurance (SSI), or Retirement, Survivors and Disability Insurance (RSDI) payments from the Social Security Administration (SSA) on behalf of an individual who cannot manage his or her own funds. The role of the representative payee is to use any funds received for the benefit of the individual in question.

Is there payment involved for being a representative payee?

Both individuals and organizations can apply to be representative payees; however, individuals are not compensated in any way for their services. Instead, they are often close friends or family members of the original payee who want to protect and look after their loved one’s interests. The exception is when the representative payee is an organization, a situation that often occurs because the individual’s family members are deceased, unwilling or unable to assist, or simply cannot be located.
In the event that the representative payee is an organization, or “fee-for-service” payee, a fee of no more than $30 a month can be charged to the beneficiary. In order to qualify as an organizational representative payee, the agency must be non-profit and pre-established with the SSA.

How do I know if my loved one needs a representative payee?

There are certain situations which definitely call for a representative payee, such as when the original payee is completely incapable of handling their own finances. Circumstances like these include the payee being in a coma, or the later stages of dementia. In such instances, it is likely the individual is either completely unable to communicate, or has lost the higher functioning needed to manage money.
However, rarely are cases so clear cut. The majority of them will lead concerned loved ones to question whether the senior is, in fact, capable of using their benefits properly. For example, they may be in the beginning or middle stages of dementia, where they are coherent at times, but incoherent at others. In these cases, it is best to consult the individual’s physician regarding their opinion of the senior’s mental facilities. Note that simply disagreeing with an individual’s monetary decisions is not grounds for becoming their representative payee; you must show evidence they cannot make rational decisions. Which leads us to . . .

How to become representative payee

The first step in applying to be a representative payee is to contact the SSA office and request form SSA-ll: “Request To Be Selected As Payee.” An in-person interview may be required, although at times it is possible for the application to be completed by phone. You will need information such as:

  • The beneficiary’s name and current address
  • The reason the beneficiary needs a representative payee (i.e., their diagnosis)
  • The name and address of the beneficiary’s primary physician
  • The beneficiary’s checking account number and routing number (if direct deposit is selected)
  • Documentation of the representative payee’s relationship to the beneficiary (for example, Power of Attorney documents)
  • An explanation of how the representative payee plans to stay informed about the needs of the beneficiary

Please note that there are certain things representative payees cannot do, including using funds they receive from the SSA for anything other than the beneficiary’s needs.

Should you become a representative payee?

As you can see, the decision whether or not to apply for representative payee status is not one to take lightly. A lot depends on your loved one’s mental abilities, financial circumstances, and your own personal comfort with taking on this important role. However, should you decide to do so, becoming a representative payee for your senior is a concrete way to protect their financial future.
If you are unsure of how to best help an aging loved one, the trained and compassionate staff at the Institute on Aging is here to help you make that decision and gain the best in at-home senior care. Contact us to find out more.

Institute on Aging

Institute on Aging

Related Posts

Questions?

Give our dedicated Client Service Specialists a call. We are ready to help.

Follow Us

Three and a half years ago, Maggie Fang started her journey as an Assessment Specialist in the Support at Home Program at IOA. Her excellent people skills enabled her to manage a caseload of older adults and individuals with disabilities, helping them receive homecare to age in place. Maggie was selected to pioneer the Temporary Respite Caregiver Support program, and we are delighted to have such a skilled and dedicated individual leading our newest program at IOA. Thank you, Maggie, for your exceptional work! 

#SocialWorkMonth #WeAppreciateyou #ThankYou #SupportatHome #CaseManager #SocialWorkerAppreciation
Join us at the Adult Day Program at the Enrichment Center as Caregiver Coach Alex shares with us the incredible support and care provided to participants living with dementia. Clients enjoy various engaging activities, from music therapy to art classes, designed to stimulate their cognitive and physical abilities. The skilled staff at the Enrichment Center also provides caregivers with much-needed support and respite, allowing them to take a break and attend to their needs. If you or someone you know is looking for support in caring for a loved one with dementia, the Adult Day Program at the Enrichment Center in the Presidio is an excellent resource for you! 

Learn more by visiting the link in our bio! 

#DementiaCare #EnrichmentCenter #AdultDayProgram #CaregiverSupport #Presidio #Dementia #Memory #Caregiver
At Insitute on Aging, we are committed to attracting and retaining top talent, and we are incredibly fortunate to have Manuel Martinez on our team. With his extensive expertise in housing and community resources, Manuel has been an invaluable asset to our organization. Recently, he was promoted to the role of Assessment Specialist II in our Adults with Disabilities - Home Delivered Meals program. In addition to managing a caseload, Manuel has demonstrated exceptional leadership skills and has become an expert in program management. We are grateful for Manuel's unwavering commitment to IOA and the community we serve. Thank you, Manuel, for your dedication and passion in making a difference in the lives of others. 
#SocialWorkMonth #IOATeam #TopTalent #CommunitySupport #HomeDeliveredMeals #SupportingAdultsWithDisabilities
In honor of #SocialWorkMonth, we're shining a spotlight on one of our exceptional social workers - Patty Myers! 

Patty has dedicated her career and volunteer efforts to support older adults and adults with disabilities in San Francisco. As the Resident Services Coordinator for Institute on Aging's Support in Independent Living program, Patty wears many hats to ensure that the 120+ residents of Martin Luther Towers Senior Housing can age in place comfortably. Her talent for connecting individuals with resources has enabled her to go above and beyond to ensure accessibility and inclusivity for all. Patty's commitment to her work has been unwavering, and we are grateful to have her on our team at IOA. 

#SeniorCare #SocialWork #SupportingTheElderly #SocialWorker #SocialWork #NationalSocialWorkerMonth #Services #Coordinator #Joinourteam