Give the payee complete information about the use of benefits; i.e., proper disbursement
and how benefits should be conserved or invested. Ensure that the payee understands
the fiduciary nature of the relationship, and that benefits belong to the beneficiary
and are not the property of the payee.
Inform the payee about the penalties for using benefits other than for the benefit
of the beneficiary and that an annual accounting is required. Advise the payee that
if they use benefits other than for the benefit of the beneficiary they will be required
to make restitution to the beneficiary.
Be alert to any information received through accounting reports, complaints from the
beneficiary, or third party reports that benefits are not being used or conserved
properly. Be alert for conduit payee situations that may indicate lack of payee interest.
A payee who turns over the full amount of benefits to the beneficiary or another person
without giving any direction or instruction about how to use the funds is acting as