A claim is approved for a Title II beneficiary whose disability is based on a mental
condition which precludes him from handling any financial matters. A person who files
to be his payee accompanies the beneficiary to the field office. The beneficiary explains
that he has no other family or friends that he/she is in contact with or would trust
to help him with his benefits. During the interview, it is learned that the payee
applicant rents a room to the beneficiary.
Since this is clearly a creditor relationship, interview the beneficiary and payee
applicant and determine if the applicant can be appointed based on the last exception
listed in GN 00502.135B. This determination will be based on information gathered and analyzed from the interview.
The applicant and beneficiary both state that the beneficiary has resided with the
applicant for some time. The applicant has been assisting the beneficiary with his
affairs, when needed, and generally is available to the beneficiary when assistance
is required. The applicant charges a reasonable amount of rent for the shelter, but
also says he needs this income to keep up his dwelling.
Explain to the applicant that his duties as a payee must take priority over those
as a landlord and that he must make every effort to ensure the beneficiary's needs
are met. The applicant's agreement to do so must be convincing.
In this instance, appoint the applicant since you are satisfied that:
a more suitable payee is not available and
even though a true creditor relationship exists, the payee intends to use the funds
in the beneficiary's best interest.