While we give first consideration to the beneficiary’s advance designee(s), if an individual not on the advance designation list or an organization applies to serve as payee when a beneficiary becomes incapable, simultaneously consider and develop all of the advance designees as well as the other payee applicant.
To determine which advance designee or payee applicant would best serve the beneficiary’s interest, follow the instructions in GN 00502.132 for selecting a qualified representative payee.
If the other payee applicant is more suitable than all of the advance designees and appointment of the other payee applicant would be in the beneficiary’s best interest, select the other payee applicant.
The following scenarios illustrate how to consider and develop advance designees and another payee applicant not advance designated by the beneficiary. In the following scenarios, we refer to the advance designees in order of priority as AD1, AD2, and AD3:
The advance designees and the other applicant are all equally suitable. We will select AD1, following the order of priority established by the beneficiary.
The other applicant is more suitable than AD1 and AD2, but is equally as suitable as AD3. We will select AD3, following the order of priority established by the beneficiary.
The other applicant is more suitable than all the advance designees. We will select the other applicant over the advance designees. For example, John advance designated his son as AD1, his eldest daughter as AD2, and his brother as AD3. Five years later, John became incapable and decided to move in with his niece who lives in a different state, where she will be his primary caretaker. John now prefers his niece as payee, since she will be helping him day to day with his finances and medical needs. If the niece applies to be John’s payee and we find that she is more suitable than AD1, AD2, and AD3 (for example, because she has custody of the beneficiary), we will select the niece over the advance designees even if they are all suitable. The appointment of the niece is in John’s best interest.