What you need to know about Social Security and a Power of Attorney (POA)

If a loved one has named you as their POA (Power of Attorney), you now have written permission to help manage that loved one’s financial decisions during his or her lifetime. Your loved one has put complete trust and authority in you to handle their financial matters.

However…

The Treasury Department does not recognize power of attorney for negotiating federal payments, including Social Security or SSI checks.

The only way to legally manage someone else’s Social Security benefits is to be appointed as a representative payee by the Social Security Administration.

What is a representative payee?

A representative payee is a person or an organization. We appoint a payee to receive the Social Security or SSI benefits for anyone who can’t manage or direct the management of his or her benefits. . A payee’s main duties are to use the benefits to pay for the current and future needs of the beneficiary, and properly save any benefits not needed to meet current needs. A payee must also keep records of expenses. When we request a report, a payee must provide an accounting to us of how he or she used or saved the benefits.

NOTE

Being an authorized representative, having power of attorney, or a joint bank account with the beneficiary is not the same as being a payee. These arrangements do not give legal authority to negotiate and manage a beneficiary's Social Security and/or SSI benefits. In order to be a payee, you must apply for and be appointed by Social Security.

How Do I Apply to be a Representative Payee?

Contact the Social Security office nearest you to apply to be a payee. You must complete form SSA-11 (Request to be selected as payee) and show us documents to prove your identity. You will need to provide your social security number, or if you represent an organization, the organization's employer identification number. Usually, you must complete the payee application with us face-to-face.