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
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
their son as AD1, their eldest daughter as AD2, and their brother as AD3. Five years
later, John became incapable and decided to move in with their niece who lives in
a different state, where they will be their primary caretaker. John now prefers their
niece as payee, since they will be helping them day to day with their finances and
medical needs. If the niece applies to be John’s payee and we find that they are more
suitable than AD1, AD2, and AD3 (for example, because they have 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.