A person who is receiving social security disability benefits and who has a physical or mental incapacity that makes it difficult for him or her to use the funds for their own best benefit may have a representative payee appointed to receive the funds on their behalf.

Such was the case with a County home and hospital the acted as payee food 13 of its residents. The facility allocated $2 per month to each of the residents for personal use, such as to purchase newspapers, candy, soft drinks, etc. The balance was applied to the cost of their maintenance.

It was held that this was an improper way to determine each individual’s best interest. Some of the residents might have a greater need for personal spending money and some might have a need for more of their funds to be used for their rehabilitation to enable them to live independently.

The county home and hospital was instructed to make a more individualized determination as to what was a suitable allocation of funds for each of the residents.

See Social Security Ruling (SSR) 64-23.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.