For accounting purposes, "living with" means custody. If the beneficiary lives alone or with someone other than the representative payee, the payee does not have custody.

Compare the response to item 7 on the form with the preprinted custody code on the top of the form. (See RS 02655.005C.3. and/or other information available for information on the meaning of the custody codes.) If this information shows that the payee has custody, but the response to this item is “YES,” resolve the discrepancy.

Develop any indication of a change in custody, unless it is a temporary, short-term arrangement and the beneficiary has returned to the payee's custody.

Depending on other information furnished in the report and/or in the file, consider the need for a new payee if the payee reports they are not living with the beneficiary.