Helping a Friend or Relative with Social Security Benefits

This column is for readers who are trying to assist a friend or relative with Social Security matters, especially the often-confusing question of how a power of attorney applies to the Social Security Administration.

I hear from people about this issue all the time. A common message goes something like this: a 90-year-old grandmother has trouble getting around and handling her affairs, so a family member has been named power of attorney to help. But when that person calls Social Security to change the beneficiary’s direct deposit information, SSA says the grandmother must do it herself. That leaves many people wondering why the power of attorney does not seem to count.

The answer is that the Social Security Administration does understand what power of attorney is. The problem is that, for Social Security purposes, it does not give someone the right to act on another person’s record. Social Security’s privacy rules are very strict.

For example, I could not get information from the SSA about any reader’s account, and no reader could get information about mine. In fact, even if I called about my wife’s benefits, the agency would not disclose that information to me because it is private.

Those privacy rules are the basis for SSA’s policy on helping someone with Social Security business. Being someone’s power of attorney does not override the law requiring the agency to keep records confidential.

That may sound frustrating, especially when someone is only trying to help an elderly relative. But the rule is clear: if a person is mentally capable of handling his or her own Social Security affairs, that person is the one who must deal directly with SSA.

The key issue is mental capacity. If someone is mentally unable to manage Social Security matters, then a family member or another trusted person can be appointed as a representative payee.

So in the case of the 90-year-old grandmother, if she is physically limited but still mentally sharp, she will need to handle her own Social Security business, though she can have help doing it. With assistance, she can call SSA at 800-772-1213 or use www.socialsecurity.gov to update direct deposit information.

If she later becomes unable to manage those matters mentally, then the family member should contact SSA and apply to serve as representative payee. That process involves a short form and a statement from a doctor or other medical professional showing that the person can no longer handle Social Security affairs.

Once approved, the checks are issued in the payee’s name for the beneficiary. For example, if the helper is Jane Doe and the beneficiary is Mary Doe, the account would show benefits payable to “Jane Doe for Mary Doe.”

With representative payee status also comes responsibility. The payee must usually account periodically for how the money was used. SSA typically sends a form, often once a year, asking how the beneficiary’s funds were spent. In most cases, that means showing that the money went toward rent, groceries, utility bills, and similar necessities.

There are some exceptions to the annual accounting requirement. For instance, if a parent is payee for a minor child, or one spouse serves as payee for another spouse, SSA does not require the yearly accounting form. Even so, those payees should still keep records in case the agency later asks for proof.

It is fortunate when a person has a caring family member to help. But that is not always the case. Sometimes no one steps forward to serve as payee, even though one is needed. In those situations, SSA relies on a list of preferred payees, usually putting close relatives or people who already have custody of the beneficiary at the top. In some cases, especially when the person lives in a nursing home or other care facility, it may be simplest to send the benefits directly to that institution.

Family disputes can also arise when several relatives want to be the payee for someone who is mentally incapable. Each person may argue that the benefits should be paid to them. When that happens, SSA must investigate and determine the proper payee, often using its preferred-payee list as guidance.

Another complication can come when one family member accuses another of misusing the funds of an incapable beneficiary. Once again, SSA has to step in and sort out the conflict.

One way to reduce these problems is through what SSA calls an advance designation of representative payee. If you are mentally capable and already receiving Social Security benefits, you can tell SSA whom you would want to serve as your payee if the need ever arises. That can prevent confusion and conflict later on.

If you have a Social Security question, Tom Margenau has two books that address many of them. One is Social Security — Simple and Smart: 10 Easy-to-Understand Fact Sheets That Will Answer All Your Questions About Social Security. The other is Social Security: 100 Myths and 100 Facts. The books are available on Amazon.com and through other booksellers. You can also email him at [email protected]. To learn more about Tom Margenau, read past columns, or see features from other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.