The law requires that representative payees establish and maintain a separate account
in a financial institution (we refer to it as a dedicated account) for certain past-due
SSI monthly payments made on or after August 23, 1996 for blind or disabled SSI recipients
under age 18. No other funds may be deposited in the account; however, the representative
can choose to deposit certain subsequent past-due benefits described in GN 00605.223B.3.
We exclude dedicated accounts from resources. In addition, we exclude any interest
or other earnings on the dedicated account from income and resources. The use of funds
from the account is restricted to specific purchases. These restrictions continue
to apply when the child attains age 18, remains eligible for benefits, and goes into
direct payment. Any unauthorized expenditures made knowingly by the payee constitutes
“misapplication” of funds and are recoverable by SSA from the representative payee.
Unauthorized expenditures made knowingly by an individual who is his or her own payee
will be deducted from future SSI payments. To determine permitted expenditures, follow
the guidelines in GN 00602.140, Permitted Expenditures from Dedicated Accounts.
Representative payees and age 18 (or older) recipients with dedicated accounts must
report annually on the activity of funds in the account to ensure deposits and expenditures
comply with the law. This reporting requirement remains in effect until after the
payee, or recipient if he or she is their own payee, depletes the account or eligibility
for benefits terminates.
NOTE: We use the term "beneficiary" generically throughout GN 00605.000, Representative Payee Accountability, to refer to both Title II beneficiaries and
Title XVI recipients. For consistency, this practice continues beginning with GN 00605.205. The dedicated account provisions apply only to the Title XVI recipients described
in GN 00605.200B (in this section).