I have searched for discussion on this and can't find what I'm looking for. There are different ways of handling, I suppose, however, would like some perspective from other bankers.

If a representative payee changes, how do you handle it? Do you close the current account and open a new one? If so, who authorizes funds in the current one to move to the new one? The person listed as representative payee on the account because they are the only one authorized to sign on that account or the new representative payee? I see issues both ways - how can the new one sign a check or withdrawal ticket when they are no longer the officially appointed representative payee yet the only authorized signer? And what if the new rep payee or the bank can't get them to do so? If the same account is used, just change the rep payee, there could be checks that the former rep payee has and he/she still writes checks. That is why we feel a new account should be opened. Our dilemma is trying to determine who should authorize the former account withdrawal into the new one.

Thanks for any input!!!

There's no official guidance on this so my suggestions simply parallel what you would do for a court appointed rather than agency appointed fiduciary.

On receipt of evidence that a new fiduciary is appointed, close account A pursuant to the signature of the current fiduciary; i.e. the current fiduciary signs the withdrawal ticket. Open account B pursuant to the signature of the current fiduciary. Make certain any electronic benefit payments are redirected for deposit to the new account.

I had one of these a week or so ago. Social Security told us to open new account for new Rep Payee. Funds in old account cannot be co-mingled into new Rep Payee account. Rep Payee on old account can do whatever they like with left over funds. The old Rep Payee is responsible for explaining to Social Security what they did with the funds. Fortunately the Rep Payee relationship fell apart in between pay periods so we didn't have to deal with incoming deposits.

I don't doubt that that is the advice you got from the SSA representative, since there is no written guidance for handling this transition. It seems awfully haphazard and sloppy, though, to an old-time banker like me. One can only wonder whether the old rep payee will ever account to the SSA for the funds or actually use the funds for the benefit of the intended beneficiary.

I rarely disagree with John, but feel he is being far too charitable in this particular analysis... As the representative payee has absolutely no claim to the funds it's nothing short of moronic for an SSA employee to say the original representative payee can do anything he wants with them...

What a former representative payee would do would depend on why the fiduciary relationship ended; e.g. if it ended because the person entitled to the benefit died, then the funds would be payable to the decedent's estate. If it ended because a new representative payee was appointed, the funds would be payable to the new representative payee, acting in that capacity. A representative payee has no rights of survivorship.

And I rarely disagree with Ken, either. And this isn't one of the times I would. My "haphazard and sloppy" comment, if I had said it out loud, would have been dripping with sarcasm. The only thing I can add to Ken's analysis is that the bank doesn't have a dog in this fight, so it isn't in a position to compel the "outgoing" rep payee to "do the right thing."