You must develop lay evidence in the form of statements from third-party sources with
direct knowledge of facts or circumstances regarding how the beneficiary manages finances
to meet their basic needs. Sources of such information include the beneficiary’s custodian,
relatives, social workers, therapists, clergy, representatives of community service
groups, adult protective services workers, friends, neighbors, and landlords. You
must obtain lay evidence from a third-party source other than the payee applicant.
While it is preferable you obtain a signed statement from the third-party, do not
delay a capability determination merely to obtain a signature. If you obtain a signed
statement from a third-party, you must store it by following GN 00502.030D.
You must use Form SSA-788 (Statement of Care and Responsibility for Beneficiary) if you contact the beneficiary's
custodian and the custodian is different from the payee applicant. Scan the completed
SSA-788 into the Non-Disability Repository for Evidentiary Documents (NDRed) under
the beneficiary's claim number using the Evidence Portal (EP) or into eView under
the Beneficiary's Own Account Number (BOAN).
If there is no third-party source besides the payee applicant, document your attempts
of obtaining a name of a third-party on the Make Note (Beneficiary Details) screen
in eRPS - MS 07415.002 or your unsuccessful attempt(s) to contact a third-party using
the same process as described in GN 00502.030C.2
1. Ask the third-party the following questions to obtain specific information about the
beneficiary's financial performance:
Do you have direct knowledge of how the beneficiary manages finances to meet basic
needs? NOTE: The third-party must have direct knowledge of the beneficiary’s real world financial
performance to provide a statement.
What is your relationship with the beneficiary (e.g., parent, spouse, other relative,
friend, social worker, therapist, clergy, other)?
How long have you known the beneficiary? (The longer the time of acquaintance, the
more information the source may have.)
How often do you meet or see the beneficiary (daily, weekly, monthly, quarterly, yearly)?
(The more frequent meeting, the more knowledge the source has of the beneficiary.)
Based on your interaction with and observation of the beneficiary, do they have general
knowledge of what is happening to their money (e.g. the amount they receive monthly,
what bills are being paid such as rent, utilities, and food, and whether the remainder
Is the beneficiary able to handle a checking/savings account? (Are you aware of any
bounced checks issued by the beneficiary or recurring bank fees for overdrawing the
account? If yes, why do you think it happened and what did the beneficiary do about
Is the beneficiary able to pay bills on time? (Do they have sufficient understanding
of the concept of time in order to pay bills promptly? Are you aware of any occasion
a utility company cut off their utilities due to non-payment? Did they ever receive
an eviction notice?)
Based on your observation of the beneficiary, can they successfully manage money to
meet basic needs (such as food, shelter, and clothing)? Can you describe how the beneficiary
is meeting daily needs?
Can the beneficiary direct someone else in the management of their benefits? Do you
know who (if anyone) is helping or would be ideal to help the beneficiary in managing
Do you have any other comments or concerns about the beneficiary’s financial performance
or financial management capability?
2. Documenting the third-party and their detailed statement:
Case established in eRPS
A payee application is taken or will be taken, whether the application is denied or
approved or there is an established beneficiary’s case in eRPS:
On the Beneficiary Details page, using the “Add Report of Contact” link, complete
the “Report of Contact Details” screen. In the “Subject” section write “CAPABILITY-THIRD-PARTY
STATEMENT” before adding your details in the “Report” section (see MS 07416.002).
Case not established in eRPS
Follow these procedures for all beneficiary cases not established in eRPS.
EXAMPLE: The state Disability Determination Services (DDS) suggested there may be a possibility
the beneficiary needs a payee. However, you do capability development and determine
the beneficiary is capable (therefore, there is no new payee application) or the payee
does not have an SSN and the beneficiary has no established case in eRPS:
Title II or Concurrent--Complete the “Report of Contact (RPOC)” screen in Modernized
Claims System (MCS). In the “Report” section, write “CAPABILITY-THIRD-PARTY STATEMENT”
before adding your details (see MS MCS 008.007).
Title XVI--Complete the “Report of Contact page in the Consolidated Claims Experience
(CCE).. In the “Report ” section, write “CAPABILITY-THIRD-PARTY STATEMENT” before
adding your details (see, MS 07416.002).
If you are unable to establish a Report of Contact in the system, use the paper Form
SSA-5002 (Report of Contact) for your documentation and scan into NDRed under the beneficiary's
claim number using the Evidence Portal (EP) or into eView under the BOAN (Retention
of Paper Material, see GN 00301.322).
IMPORTANT: DDS opinion is lay evidence of capability; it is NOT a determination on
capability per GN 00502.040A.8.