Sometimes, the U.S. Social Security Administration (SSA) will send your benefit payments to a "representative payee" instead of to you.

Watch this video to learn about Representative Payees.

The following people are required by law to have payees:

• Children under 18 (unless emancipated), and
• Adults who can't manage their own benefits.

SSA presumes an adult is capable. If it appears this may not be true, SSA has to gather medical or legal evidence to decide whether a payee is needed. Legal evidence includes court findings regarding an adult's competency.

What should a payee do?

Your payee must use your monthly benefits to pay your expenses, including

• Rent,
• Utilities,
• Telephone,
• Food,
• Clothing,
• Transportation costs, and
• Medical co-pays, etc.

If the benefit payments exceed your needs, the payee must save the extra money:

• In a safe manner, like savings bonds or a savings account, and
• Separate from the payee's own funds. 

SSA requires payees to file reports explaining how the money has been spent or invested from time to time. SSA can require receipts or other proof. ​

SSA no longer requires the following payees to file reports :

• Natural or adoptive parents of a minor child beneficiary who primarily reside in the same household as the child,
• Legal guardians of a minor child beneficiary who primarily reside in the same household as the child,
• Natural or adoptive parents of a disabled adult beneficiary who primarily reside in the same household with the beneficiary,
• Spouse of a beneficiary, and
• State mental institutions that participate in the SSA onsite review program.

All payees must keep records of how the payments are spent or saved, and make all records available for review if requested by SSA.

A payeee must notify SSA of anything that may affect your eligibility for benefits or the amount of benefits. This includes:

• Other sources of income that you receive,
• Changes in address or work activity,
• Death,
• Marriage, or
• If you move to or from a hospital, nursing home or other institution.

You need to report these changes to SSA yourself if the payee does not do so.

SSA can hold a payee personally responsible for benefits that were overpaid to you because of the payee's failure to notify SSA of this information.

Selecting the payee for a child with a disability

The preferred payee for a child with a disability can be

• The natural parent,
• The adoptive parent, or
• The legal guardian caring for the child.

If that person is not appropriate, SSA may consider another relative or friend who is

• Helping support the child or
• Otherwise strongly concerned with the child's well-being.

If no such person is available, SSA may appoint a social service agency or institution as the payee.

Such payee must make sure that the child receives necessary medical care for his or her disability. SSA can remove the payee if he or she fails to seek this care without good cause.

Selecting the payee for an [no-lexicon]adult[/no-lexicon]

You may request SSA to appoint a person you choose as your payee. Although there are no specific qualifications that a payee must have, he or she cannot have been convicted of certain felonies. The payee should be someone who sees you on a regular basis and who you can easily contact if you need something. 

SSA has guidelines ranking the potential payees. They generally prefer

• A spouse or other relative who lives with you, or
• Who has a strong concern for your well-being.

 If no such person is available, SSA will consider

• A close friend, or
• An agency or institution.

If you feel that you do not need a payee or if you object to the proposed payee, you may

• Ask to review the evidence used to make the decision, and
• Present more information to SSA.

You will then receive a written determination. If you disagree with the determination, you may request an appeal. 

Paying a social service agency to be the payee

If it is difficult to find an appropriate person, SSA may appoint a social service agency as your payee. SSA will allow them to charge a fee of up to 10% of your total monthly benefit, with a maximum of $41 per month in most cases.

The monthly fee allowed for payees is the lesser of 10% of the monthly benefit amount or $43. If SSA determines the beneficiary has a drug addiction or alcoholic condition, the monthly fee is the lesser of 10% of the monthly payment or $82.

The agency must get written approval from SSA before it can collect any fee.

Any type of payee other than an approved social service agency cannot collect any fee for their services as a payee.

Changing the payee

SSA may appoint a new payee if the payee

• Dies,
• Becomes unable to serve, or
• No longer wishes to be the payee.

Also, SSA may remove the payee if

• The payee fails to properly serve your interest, or
• A more appropriate person becomes available to serve as your payee.

You should notify your local SSA office if you feel the payee should be changed. Your benefits may be interrupted if your payee is removed and a new one is not immediately available to take his or her place.

Ending Representative Payment

At any time, you can ask the SSA to terminate representative payment if you can show that you are physically and mentally capable of handling your own funds. You will be required to present a statement from your doctor or other proof.

If you have a legal guardian of your estate, SSA cannot stop representative payment unless you obtain a court order restoring your legal right to handle your funds. SSA may also reevaluate your eligibility for SSDA or SSI benefits based on the new evidence that you provide of your improved condition.