S was committed to a mental institution and became entitled to social security disability insurance benefits in 1964 based on a mental impairment that began in 1960. His father, R, was appointed as representative payee of his disability benefits. He received a lump sum payment of accrued benefits, as well as the monthly ongoing benefits for S.

A representative payee is charged with using disability benefits for the “use and benefit” of the beneficiary.

In 1965 R initiated a court action to secure his son’s release from the mental institution on the grounds that his continued detention was unlawful. He used $500 of S’s accrued disability benefits for attorney fees and court costs.

The question arose whether such a use of S’s disability benefits complied with the statutory mandate that benefits be applied for the beneficiary’s use and benefit.

This means the funds applied must have a specific and reasonable relationship to the personal benefit of the beneficiary and be reasonably related to his other needs.

It was held that use of the beneficiary’s disability benefits to secure his release from a mental institution was indeed proper, regardless of whether the action was successful or not.

See Social Security Ruling (SSR) 66-42.

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.