Was contemplating becoming payee until I saw all of what was involved. I'm already POA, but this is not recognized by this institution. I recognize there are similarities in responsibilities, but it sounded more overwhelming. Also found it difficult to make distinction between mailing and residential address on their records. I don't want any financial information going to parent's facility for fear it may get lost or misplaced.
He has to do an annual report and explain where all the money went. The SSA will send you the report to fill out when it is time.
My husband pays all his bills and keep receipts for all. In addition he tracks all the expenses with an Excel spreadsheet so the report is not to hard to complete. He has included a column in the spread sheet that coincides with the categories on the report. This enables his to consider the expense as housing, food, and one more category I can’t remember now but he is easily able to group the expenses to fill out the report.
I am my father's POA and then became his guardian when he was demmed no longer decisional. Becoming his social security payee was what I was first instructed to do by the court. The only way SS would speak to me was when I faxed them my letter of gaurdianship. There was a 2 page form for me to complete and mail back to them. Within 60 days, SS sent me a letter acknowleding I was his designated payee. I pay all of his bills from that account. I keep reciepts in a file as proof to what his monthly expenses consist of (rent for memory care, receipts for meds from his pharmacy, copies of his supplementsal insurance paid for, etc.).
In my opinion, it was a small bit of work to get started. Now it's not a lot of work to do the right thing and protect my Dad. Start with a phone call to your local SS office to request information on how to become becoming your parents SS payee. I wish you all the best.
Disclaimer: The above is not my authoring.
Ergo, just more work for you to do IF you indeed do become representative payee.
There’s nothing difficult about being a representative payee as long as you spend your parent’s SS money on his/her needs only and you keep ALL receipts of what you spent just in case SS needs proof of where the money went.
I can understand your concern about not wanting to use the address of the facility where your parent resides as mailing address. My suggestion would be to use your address as the mailing address. The residential address will be where your parent resides. Another suggestion, if you don’t want to use your address as your parent’s mailing address, is to have a PO Box for your parent.
Hope you find the solution that works best for you.
However, in my case, my sister had no POA set up. I had to go through the court to be named legal guardian. At that time, our attorney recommended that I also apply to be the Social Security representative payee and have that money deposited into its own account. When I asked why, since I would already be managing her other accounts (with permission from the court), our attorney informed me that as representative payee, I could use the social security funds as I wished for my sister's care, without any court oversight. For whatever reason, the court sets that money aside for the legal guardian to use with no permissions required.
Although becoming the representative payee was a hassle, requiring paperwork and about a couple hours' worth of phone calls, it was less hassle than it could have been--because it was still in the midst of the pandemic, it was all done by phone. I didn't have to sit in any social security office. And having that account has been a godsend. If my sister needs something or if a random medical bill comes in for her, I can just pay it out of the payee account without the hassle of having to petition the court and waiting permission to pay out the funds. I have used it for OTC meds, incontinence care items, and even out-of-pocket physical therapy for her once insurance stopped paying.
I can see how this might present an issue of the guardian in question is unethical and spends the money on other things. But I am not and I don't. The money is building up in my sister's account, and it offers me some comfort to know I have the flexibility to use it for her care without court oversight.
Let the banking system work for you.
Why get government red tape involved unless you absolutely have no other choice?
If you become representative payee here is a few things you must do keep all your receipts that you pay for them. Keep all the financial stuff for 3 yrs because someone can turn you in they can go back 3 yrs and you would have to prove it all went to the person. No one told me this. When I got turned into social security they only went for 2022 I had to send them every bank statement, every statement that I used his money for, and also the receipts from grocery stores, Walmart, other stores. Keep copies of everything you do for them.
The nursing home where my BIL is will have his social security and his pension I will be giving everything up to them. I have had enough stress to kill someone because of his family. Let the family fight with the nursing home let the nursing home get turned in I am done.
Prayers to you.
The only time anything went to her residence (mistakenly) was BEFORE I became her designated payee.
I had LO’s SS check mailed directly to her checking account, titled in her name with her 2 POAs.
All of her expenses were paid from that account and no other transactions EXCEPT hers.
Her state and federal taxes were a breeze because all of the expenses and nothing else, came from that account.
All I used when applying to be named “designated payee” was a statement from a behavioral psychiatrist indicating that she was unable to manage her own affairs.
My only additional task was filing a brief online report once a year indicating that her entire check was going to meet her expenses in her residential care settings.
Really, not a big deal at all.