Becoming DH's Representative Payee for Social Security

Dio

Is there any benefit to becoming DH's representative payee? Seems it requires a lot of trouble to get approval and possibly having to open a separate savings/checking account and keep accounting of this money. Currently, every monthly payment is auto deposited and available to pay for bills. So why is this needed?

Quilting brings calm

I don’t think it’s needed - you will just always have to keep that checking account though as you won’t be able to change the direct deposit. However, I don’t know if it would be needed for Medicaid purposes

Dio

Thanks, QBC! The checking account will stay open for as long as DH is alive. Too many auto-pay already set up, including his monthly MCF dues.

Ci2Ci

I have elected NOT to pursue that, as I try very hard to avoid anything that could hint at impropriety. My mother added me to her bank accounts years ago (when she had capacity). I keep every expense from her account well documented (including using the check memo field). So, if you can access your LO's bank account to receive the SSA check and pay your LO's bills, why risk it. IMO.

Be sure to create an online account for the SSA portal right away, by assisting your LO in doing so!

The only apparent advantage: When I asked local rep how I could officially be recognized as my LO's authorized representative (since SSA does not recognize a POA as is) to speak on her behalf, they said to become the designated payee. To date, local SSA reps have been kind about providing helpful information, as needed, without me having to do so.

CaliforniaGirl-1

If it gets to the point that your LO cannot answer verifying questions or go into the SS office to verify their identity, you may find you need to do it. Many people never do because nothing changes at SS to make it necessary.

There are some hoops to jump through which makes sense from the perspective of protecting a vulnerable population. But if it is a spouse or a parent or a child, it is a reasonable process. There are additional steps to navigate in terms of how to pay things, but none of it is unreasonable or onerous. It is not a 2 minute process though.

BassetHoundAnn

In order to change my mom's address for Medicare purposes, and also to have authorization to handle her Medicare issues, I had to first become her Social Security Representative Payee. Once I was able to get a phone appointment with a Social Security rep--which took exasperating months of phone calls and sitting on hold--the phone appointment was quick and there were just a few forms to fill out and mail back.

The problems arose in setting up a Representative Payee account at her bank. They could not give me an appointment to come in and set it up within the one-month time-frame that Social Security specified. Then, when I finally got in, the branch manager didn't know how to set up such an account, and ultimately set it up wrong with the wrong paperwork. The bank informed me of the error after I had given Social Security the new account information. So, I had to go back into the bank to fill out new paperwork and contact Social Security once again with account information, and hope that everything got straightened out. It ultimately did, but yeah it was a hassle.

Worth noting is that upon death the Representative Payee account is locked down by the bank. The representative payee is no longer able to access it. So you do want to promptly transfer money from that account into the bill-paying account as soon as SS payments are deposited.

CaliforniaGirl-1

@BassetHoundAnn I have a question. I have been leaving the money in the rep payee account until it's time to pay the MC and paying directly out of that account.

Do you transfer the money into another account as soon as SS is deposited and pay the bills from that one? Have you been able to do your annual report to SS with no issues?

Thanks. The whole process is so awkward.

BassetHoundAnn

https://alzconnected.org/discussion/comment/181189#Comment_181189

Hi, CaliforniaGirl, I transfer the Social Security deposit from the rep payee account into a checking account every month, then pay my mom's memory care bill via auto-pay from the checking account. The checking account has both my and my mom's names on it, so after she dies I can still use that account to pay her bills. It won't be shut down immediately upon her death. My mom and her bank had set up that checking account prior to her Alzheimer's specifically for that purpose, so that I could manage her bills as her mental acuity diminished.

The annual report to SS has been easy to file. They send me the form every year. It's simple and takes minutes to fill out. I specify that all her SS is going to her memory care fees. I do keep a meticulous accounting of all her expenses each month--in addition to memory care fees there's also clothing, beauty shop, doctor co-pays, shoes etc. In case SS requests it, and also for applying for Medicaid when her money runs out.

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BassetHoundAnn

https://alzconnected.org/discussion/comment/181244#Comment_181244

Oh that's interesting, Victoria! Thank you for the link.

I wasn't aware of that. I did consult a highly regarded eldercare attorney a couple years ago, and gave him info on all my mom's accounts and their ownership. We spoke a lot about laying the groundwork for her to become eligible for Medicaid but he didn't mention the problems of a joint account or raise any red flags.

I've been using the joint checking account to make automated payments for memory care, as well as paying medical bills, and bills for miscellany for a couple reasons. One is that the bank has been such a PIA refusing to let me use the durable POA to establish accounts solely in my mom's name, even though the POA specifically gives me that power to open new accounts.

I've never used the joint account for anything else except my mom's expenses and care. Although state Medicaid people might think it's all dubious.

Ah, something else to worry about! I guess we'll see. It's all such a crapshoot.

Thank you, Victoria, for pointing this out.