How Should a Representative Payee Spend a Child's SSI Benefits?

Submitted by Daniel on

Today we will be addressing a question that came to us through our interactive disability forum. If you have a question regarding any part of the Social Security Disability application process, leave it in the comment section below so that we can answer it in a future blog post. Today’s question is:

How should a representative payee spend a child's SSI benefits?

As the representative payee for your child’s Supplemental Security Income (SSI) payments, you are responsible for using the funds appropriately and for keeping accurate records of how the payments are spent.

Standard monthly benefit payments can be managed and used in certain ways, while significant back payments of retroactive benefits must be handled differently.

Dedicated Accounts for SSI Back Payments

If your child has recently been approved for SSI and is due a large back payment of benefits, then you will be required to open a dedicated bank account for the funds and the use of those funds will be subject to very specific restrictions.

  • The dedicated account must be a separate checking, savings, or money market account from the one that is used for standard monthly SSI benefits.
  • The funds in the account must be maintained separately from all other funds, including monthly benefit deposits from SSI.
  • The back payment funds cannot be used to purchase stocks, bonds, CDs, or any other form of secured or unsecured investment.
  • The account must be registered showing your child as the owner of the funds and any and all interest that may be accrued on the account.

Funds from your child’s dedicated account can be spent only on the following:

  • medical treatment and related expenses
  • educational expenses, including job and skills training costs
  • special equipment, skilled nursing assistance, home modification costs, and rehab or therapy expenses

Legal fees due to the attorney that assisted in your child’s SSI claim can also be paid from this account.

Regular Monthly Benefit Payments

Your child’s regular monthly SSI payments can be deposited into your standard savings, checking, or money market account, but you will still need to accurately track the manner in which those funds are spent and report that information to the SSA as required.

Monthly benefit payments can be spent on everyday living expenses and daily support needs. These can include any and all of the items listed under the authorized Dedicated Account spending, as well as the following:

  • food
  • clothing
  • shelter
  • insurance costs
  • medical care
  • child care expenses
  • furnishing
  • personal comfort items

Keep in mind that the above listed items can only be used for the child earning the benefits.

Any monthly benefits that are not needed to pay for your child’s current-month expenses must be saved for future use. Many people find the easiest method for keeping track of their child’s benefit balance and spending details is to have a separate checking and/or savings account specifically for monthly SSI payments.

Periodic Spending Checks

The SSA conducts periodic checks on the spending practices of representative payees. Typically these reviews happen once a year. However, the SSA may require reporting as often as every three months for the duration of your child’s SSI eligibility.

If you aren’t sure if you are spending your child’s benefit payments correctly, you should contact the SSA representative who handles his or her claim. If a child’s payments are spent incorrectly, the representative payee may be required to reimburse any funds that were misused.

Please leave any Social Security Disability questions in the comment section below so that we can answer them in a future blog post!

Blog comments

Kristina (not verified)

Hi, the mother is the payee.

Hi, the mother is the payee. She lives in another state and has had joint custody of the child but the child mainly lived with her.... The mother has been arrested mulitple times for drugs and currently is on meth. The father has had the child for 2 months and the mother refuses to give him the ssi check cause she's saying she's homeless and needs the money to find a place to live. Should the check go to the father, where the son lives now, since the mother is on drugs and has been arrested for drugs?

Fri, 06/30/2017 - 19:44 Permalink
Eric

In reply to by Kristina (not verified)

Hi Kristina,

Hi Kristina,

Probably.You can call the SSA and leave a report if that is the case: 1-800-772-1213.

-Eric

Wed, 07/05/2017 - 09:17 Permalink
Jerry (not verified)

Can I use my kids benefits

Can I use my kids benefits for his birthday

Fri, 06/30/2017 - 22:27 Permalink
Eric

In reply to by Jerry (not verified)

Hi Jerry,

Hi Jerry,

The best piece of advice I can give you is to always check in with the SSA with any questions you are unsure of regarding how to spend your child's SSI benefits.

-Eric

Wed, 07/05/2017 - 09:39 Permalink
Tammy (not verified)

I've been collecting

I've been collecting disability for my son Do i have to save all receipts I lost some of them but i write everything down

Sat, 07/01/2017 - 06:38 Permalink
Eric

In reply to by Tammy (not verified)

Hi Tammy,

Hi Tammy,

It is always recommended to save all receipts when using your child's SSA payments.

-Eric

Wed, 07/05/2017 - 09:50 Permalink
Tammy (not verified)

What do you mean by

What do you mean by furnishing I bought my son a bed is that ok

Sat, 07/01/2017 - 06:40 Permalink
Eric

In reply to by Tammy (not verified)

Hi Tammy,

Hi Tammy,

That could be okay, but you should check in with the SSA if you are unsure of anything.

-Eric

Wed, 07/05/2017 - 09:51 Permalink
Bridget (not verified)

Is it ok to pay rent with my

Is it ok to pay rent with my child's ssi?

Mon, 07/03/2017 - 13:02 Permalink
Eric

In reply to by Bridget (not verified)

Hi Bridget,

Hi Bridget,

That may fall under shelter, so it should be okay. i would recommend speaking to a representative from the SSA if you are unsure of anything though.

-Eric

Wed, 07/05/2017 - 16:16 Permalink
Marla (not verified)

My son ssi back pay can i

My son ssi back pay can i get him a bed room set and put up a fence in the yard to keep him safe

Mon, 07/03/2017 - 20:16 Permalink
Eric

In reply to by Marla (not verified)

Hi Maria,

Hi Maria,

You may be able to. The best piece of advice I can give you is to always check in with the SSA with any questions you are unsure of regarding how to spend your child's SSI benefits.

-Eric

Wed, 07/05/2017 - 16:24 Permalink
Diego (not verified)

Hello, my son will receive

Hello, my son will receive soon his SSI back pay money, it's took nearly 2 years so he could be aproved and it's been really hard for me to cover his needs like shelter (rent), food, bills, transportation needs etc, can be able to use the back payment to recover myself from what have been using money for at least from all the rent and some home bills?

Tue, 07/04/2017 - 18:17 Permalink
Eric

In reply to by Diego (not verified)

The best piece of advice I

The best piece of advice I can give you is to always check in with the SSA with any questions you are unsure of regarding how to spend your child's SSI benefits.

-Eric

Wed, 07/05/2017 - 16:24 Permalink
Amanda p (not verified)

My son is in the process of

My son is in the process of receiving benefits...my question is can we use them for his rent or not?

Wed, 07/05/2017 - 01:37 Permalink
Eric

In reply to by Amanda p (not verified)

Hi Amanda,

Hi Amanda,

You may be able to. The best piece of advice I can give you is to always check in with the SSA with any questions you are unsure of regarding how to spend your child's SSI benefits.

-Eric

Wed, 07/05/2017 - 16:25 Permalink
Magy (not verified)

Hi, I was wondering how would

Hi, I was wondering how would I calculate how much to take out for food and shelter from the childs monthly check?

Thu, 07/06/2017 - 00:00 Permalink
Eric

In reply to by Magy (not verified)

Hi Magy,

Hi Magy,

I don't think I can accurately answer your question. There are no guidelines on how much you should spend your Child's SSI benefits on such as food and shelter. However, with anything you buy using your child's benefits remember to keep the receipts and to keep track of how you spend it.

Best of Luck,
Eric

Thu, 07/06/2017 - 09:33 Permalink
chrisB (not verified)

MY TWO KID GET SSI DUE TO ME

MY TWO KID GET SSI DUE TO ME BEING DISABLED. BOTH MY KIDS LIVE WITH THEIR MOTHER SEPARATELY FROM ME. I BELIEVE MY EX IS USING THEIR MONEY TO SUPPORT THEM INSTEAD OF USING ALL OF HER PERSONAL INCOME FIRST.

ALSO, I KNOW FOR A FACT SHE ISN'T KEEPING TRACK OF HOW AND WHERE THEIR SSI IS BEING SPENT.

IS SHE MISAPPROPRIATING MY KIDS SSI?

ISN'T MY EX SUPPOSE TO EXHAUST ALL OF HER INCOME BEFORE DIPPING INTO MY KIDS SSI.

EXAMPLE: FOR CHRISTMAS SHE GOT A BONUS OF $2500(WHICH SHE GETS EVERY YEAR) SHE USED THAT MONEY ON HERSELF AND HER CURRENT BOYFRIEND. AND USED MY KIDS SSI TO PURCHASE GIFTS FOR THEM.

EXAMPLE 2: SHE TOOK A VACATION (AN OVERNIGHT TRIP ONLY) TO THE MOUNTAINS WITH MY SON. INSTEAD OF SAVING HER OWN MONEY FROM HER PAYCHECK TO PAY FOR THE TRIP, SHE WITHDREW MONEY FROM MY SON'S ACCOUNT. MY SON INFORMED ME SHE TOOK OUT $400 BUT ONLY SPENT ABOUT $200. INSTEAD OF PUTTING THE REMAINING MONEY BACK INTO HIS ACCOUNT SHE HELD ONTO IT FOR HER PERSONAL USE, LUNCH EATING OUT, GAS IN HER CAR, CLEANING SUPPLIES FOR HER CAR, MAKEUP, ETC.

Thu, 07/06/2017 - 22:39 Permalink
Bryan

In reply to by chrisB (not verified)

Hi Chris,

Hi Chris,
Auxiliary benefits generally have less restrictions on them than income-based benefits, but they are intended to help support a child, so that may not be a misuse of those funds.

Fri, 07/07/2017 - 08:23 Permalink
Anonymous (not verified)

Can the child spend his money

Can the child spend his money to go to movies with a friend? Also for personal luxury items.

Tue, 07/11/2017 - 10:10 Permalink
Tiffany (not verified)

My child has just received

My child has just received his first disability check. Is that check the true amount he will receive every month?

Wed, 07/12/2017 - 11:33 Permalink
Domingo (not verified)

How much do you have to give

How much do you have to give your kid out of their ssi check in the state oklahoma

Wed, 07/12/2017 - 19:41 Permalink
Bryan

In reply to by Domingo (not verified)

Hi Domingo,

Hi Domingo,
You don't need to give your child the benefit funds if you are their payee, however you are obligated to use those benefits for their care and upkeep.

Thu, 07/13/2017 - 09:11 Permalink
Mom (not verified)

All I know is that $11,000 is

All I know is that $11,000 is hard to spend on a child with mental/behavioral issues if all that I can get approved for is medical supplies and school. I have no idea what to get for her. I tried to get a trampoline with enclosures so that she could burn off some energy and they denied it. -Exhausted from the first attempt. I'm sure eventually they'll just take it all back.

Thu, 07/13/2017 - 14:39 Permalink
Nonie7021@gmail.com (not verified)

If i just lost my job of 5

If i just lost my job of 5 yrs due to loseing my only child care and my baby is special needs and i need to take care of him myself now can i use his disibility money for rent???

Fri, 07/14/2017 - 20:34 Permalink
Eric

In reply to by Nonie7021@gmail.com (not verified)

Hi There,

Hi There,

You may be able to, but as a rule of thumb you should always check in with the SSA with any questions you have about spending your child's disability benefits.

-Eric

Mon, 07/17/2017 - 09:03 Permalink
Jaz (not verified)

I will be applying for my SSA

I will be applying for my SSA at 63 and will also apply for my child's benefits. I pay 900 rent for our 2 bedroom apartment, could I then take 450 of the child's check and apply it to rent so I will only pay the 450 for my share?

Thank you

Jaz

Mon, 07/17/2017 - 03:10 Permalink
Bryan

In reply to by Jaz (not verified)

Hi Jaz,

Hi Jaz,
If the child is receiving SSDI benefits based off of your work record, you may have some leeway as to what you can use those benefits for as they are not based on income.

Mon, 07/17/2017 - 11:12 Permalink
Jaz (not verified)

In reply to by Bryan

Thank you for your response.

Thank you for your response.

My child is not disabled, I am applying for retiree child's benefits. Would the same apply? Could I use the some of the money to pay for half the rent since we have 2 bedrooms one of which is hers?

Thank you

Jaz

Mon, 07/17/2017 - 17:03 Permalink
Alba (not verified)

hello..my husband is the

hello..my husband is the payee on our childrens ss benefuts due to the fact that he is disabled but he.miss used their back.pay on his personal.stuff and continues to do that to their montly.paymentd.he says the money belongs to him.and that if he wanst disabled the kids wont get anything plus its money taken.out whiles he was working..i really camt imagine how any.one will talk like this.well if the.kids need personal things n he doesnt release the money and using it for his gain..not fair.on.these kids.he also said he has been.paying rent with their money and that they r requiref to have shelter..so i asked him.you meN your 5 and 3 year olds are the ones paying for rent over our head..how about using your own cheques to.pay your rent..pls help am at one stop short.of reporting him
.he mostly.live outside the.usa but transfers the.money for his personal gain..what do i do

Thu, 07/20/2017 - 12:46 Permalink
Bryan

In reply to by Alba (not verified)

Hi Alba,

Hi Alba,
You may want to contact your local SSA office regarding this, they can re-assign your children's payee if your husband is not using those benefits for your children.

Thu, 07/20/2017 - 13:33 Permalink
April (not verified)

I am curious. My son receives

I am curious. My son receives SSI benefits and has back pay coming to him. Can I use that money to get into a house for us and on moving expenses?

Fri, 07/21/2017 - 15:36 Permalink
Eric

In reply to by April (not verified)

Hi April,

Hi April,

You may be able to do that, however if in doubt it's a good idea to contact your local SSA office.

Best Wishes,
Eric

Mon, 07/24/2017 - 09:15 Permalink
Robert (not verified)

My daughter receives ssi from

My daughter receives ssi from her mothers disability. She's in my care with mom seeing her every other weekend and on Thursday. Nonetheless, lots of money have accumulated in her account and I haven't spent a dime. It's my belief that mom is a fraud and although I announced this to ssi they sent money. Can I use this for prepaid college for her? She is now 10

Sun, 07/23/2017 - 08:04 Permalink
Bryan

In reply to by Robert (not verified)

Hi Robert,

Hi Robert,
As the child is receiving these benefits from SSDI, then yes, you may be able to use those funds for that as SSDI benefits have different guidelines as compared to SSI benefits.

Tue, 07/25/2017 - 09:03 Permalink
Bryan

In reply to by Robert (not verified)

Hi Robert,

Hi Robert,
As the child is receiving these benefits from SSDI, then yes, you may be able to use those funds for that as SSDI benefits have different guidelines as compared to SSI benefits.

Tue, 07/25/2017 - 09:03 Permalink
Chauney strong (not verified)

What is considered to be used

What is considered to be used for the allocated money thats in my checking account?

Tue, 07/25/2017 - 14:35 Permalink
Kira (not verified)

What if I know someone that

What if I know someone that uses there childs ssi check to pay bills , buy groceries , and pays loans off , and buys them clothes but the only thing they do for the child with that check is provide shelter and food

Wed, 07/26/2017 - 11:55 Permalink
Bryan

In reply to by Kira (not verified)

Hi Kira,

Hi Kira,
You may want to contact the SSA regarding this, you can call them at 1-800-772-1213

Wed, 07/26/2017 - 13:19 Permalink
Emma (not verified)

My mom gets disability and I

My mom gets disability and I just got a letter in the mail that says I get $466 benefits from her disability, and $29 a month. Everywhere on the paper says that it is for me and I am to receive the money. I read this article and saw that my mom is to set up a separate account for me that shows what is spent but my mother says that she is keeping it in her account. It was to my understanding that the money would be mine to spend since she gets so much every month for her disability, and I thought this money was mine but she said that she will not hand it to me to use she is going to spend it on paying bills. I'm confused as to why she won't spend her own money on the bills, she is spending the money that says is for me. Is she right?

Thu, 07/27/2017 - 15:33 Permalink
Bryan

In reply to by Emma (not verified)

You're very welcome!

You're very welcome!

Mon, 07/31/2017 - 08:51 Permalink
Patricia (not verified)

Can the large sum be spent

Can the large sum be spent for a down payment on a house for my children?

Fri, 07/28/2017 - 20:32 Permalink

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