Apply an exception to the general rule that the title of the account or sub account
must show the beneficiary's ownership of the funds when the title meets all conditions
Representative payee is the spouse, natural parent or adoptive parent, or stepparent
of the beneficiary or recipient, and
Representative payee and the beneficiary live in the same household, and
Representative payee requests direct deposit to the payee's personal checking account,
Confirmation from the field office with the payee that benefits received are for the
beneficiary's current expenses with no accumulation of funds in the account.
The exception applies for any title II or title XVI payments category. The beneficiary
or recipient does not require to be receiving benefits as a disabled/blind child or
disabled adult child. The age of the “child” is NOT material. In addition, the exception
applies for the child’s benefits whether the representative payee’s parent is the
sole owner of the account or is married and has a joint account with his or her spouse.
For more information, see also:
GN 00603.020 Collective Checking and Savings Accounts Managed by Representative Payees
GN 00603.010 Conserving Benefits in a Savings or Checking Account
EXAMPLE 1: (ACCEPTABLE) Sam Smith, age 62, lives with his mother and receives retirement
benefits. He becomes unable to handle his own benefits, and his mother becomes his
representative payee. She requests direct deposit to her checking account and states
all benefits spent are for her son's current expenses. The FO approves her request.
EXAMPLE 2: (ACCEPTABLE) Betty Roe, age 25, qualifies for SSI benefits as a disabled
individual. Her father, with whom she lives, becomes her representative payee and
requests direct deposit to his own checking account. He states that all funds spent
are for Betty's current expenses. The FO approves the request.
EXAMPLE 3: (ACCEPTABLE) Mary Jones files for survivor's benefits for her three children
(ages three, five, and seven), when their father dies. She requests direct deposit
of their benefits to her checking account, stating the children live with her and
all benefits spent are for the children and no money will accumulate in the account.
The FO approves the request.
EXAMPLE 4: (NOT ACCEPTABLE) Joe Johnson, age 8, becomes eligible for SSI payments
as a blind child. His brother James, with whom he lives, requests direct deposit of
Joe's payments to James's checking account. He states all of Joe's money is for Joe's
needs and will not accumulate in the account. Because James is not Joe's parent or
spouse, the FO denies the request and provides examples of account titles for a beneficiary
with a representative payee. For another exception that applies to trust agreement
cases, see GN 02402.060.