The Social Security Administration (SSA) assumes that adult beneficiaries are capable of managing their money unless there is legal, medical or lay evidence to the contrary.
Having a representative payee is not an option or a choice.
SSA appoints a representative payee when a beneficiary is determined incapable of managing or directing someone else to manage their benefits.
The law requires that some beneficiaries have a representative payee.
Those required to have a payee include:
If you have a beneficiary that is receiving their own Social Security and/or SSI payments and they lose their ability to manage their money, you should promptly report this to SSA.
When this occurs, SSA will obtain medical or lay evidence to determine if the beneficiary is capable of managing his or her payments.
If the beneficiary is determined to be incapable, SSA will appointment a representative payee.