There is a new law that adds protections for any elderly, disabled, or minor Social Security recipient where their benefit is paid to someone else representing them - a “Representative Payee” - either an individual or organization. The Payee must use or save the money for the beneficiary. The new law has several provisions.
- The states must conduct periodic onsite reviews of Payees.
- A Payee must
- grant permission for a background check
- not be a convicted felon
- not be a recipient themselves with a Representative Payee
- Social Security recipients who anticipate needing a Representative Payee may designate who they want, in advance.
- The requirement to provide an annual accounting of how the benefit was used has been eliminated for a Payee who is the spouse or parent of the beneficiary, living in the same home. This means that a husband caring for his wife with Alzheimer’s, or a widow with three young children, no longer has to report each year on how the money was spent.