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#2122937 - 03/21/17 07:46 PM Rep Payee & POA
Matt_B Offline
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I really thought I had this whole rep payee thing sorted out.

We've always operated under the understanding that a rep payee account is solely for the funds from SSA to the beneficiary, to be managed by the rep payee. That being said, we're not necessarily obligated to monitor the account, but also don't want to actively participate in accepting funds from other sources.

We had a new one today. The rep payee flew off the handle when we told him we wouldn't accept a $100,000 personal check payable to the beneficiary into the rep payee account because it wasn't SSA funds. The account person ended up on a call with a rep from the local SS office, and he said they have no problem with co-mingling funds, so long as the funds are all owned by the beneficiary and it's not the rep payee's money. He then emailed pasted sections from POMS, so that came with significantly more credibility than his word (which I know they're wrong more than they are right!).

So, question. If your rep payee also has POA for the beneficiary, do you allow the rep payee account to be used as any other "normal" fiduciary account might be? Maybe we've been too restrictive in the past based on misunderstanding. It seems like it'd be a nightmare from an accounting perspective, but at the end of the day that's not really our problem.
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#2122942 - 03/21/17 07:53 PM Re: Rep Payee & POA Matt_B
Elwood P. Dowd Offline
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The off the handle individual, is he an "attorney-in-fact" under a POA?

The title of the account you have, does it indicate it is for a representative payee?
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#2122964 - 03/21/17 08:26 PM Re: Rep Payee & POA Matt_B
Matt_B Offline
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It would seem so, yes. However he apparently didn't think to bring his SSA or POA docs with him to open the account. Convenient, no?

Rep payee has a 10+ year banking relationship with us, so safe to assume he just wants to bring the relationship over to us. I'm fairly sure he's got no bad intentions, but not sure about the whole deal.
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#2122972 - 03/21/17 08:37 PM Re: Rep Payee & POA Matt_B
Elwood P. Dowd Offline
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My grandfather was fond of saying "Never assume dishonesty when stupidity is an equally plausible excuse." I don't assume people are dishonest... You need to figure out what this person's source of authority is besides bluster.
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#2123100 - 03/22/17 03:50 PM Re: Rep Payee & POA Matt_B
Matt_B Offline
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POA paperwork is actually on the county recorder's site, and matches what was provided. It's the State's canned version, with all powers on the checklist granted. Appears to be in order.

Still not a fan of using the rep payee account for anything besides SSA funds, but it does seem he's got the legal authority.
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#2123105 - 03/22/17 04:04 PM Re: Rep Payee & POA Matt_B
Elwood P. Dowd Offline
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You were right the first time.

As the representative payee relationship gives him no power over anything but those payments, your concerns are well founded. It's one thing for him to open an account as the attorney-in-fact or to take over an existing account that stood in the principal's name and direct government payments to it. It's quite another to use an account set up as a representative payee account and then use it for all purposes.

If your tellers are well trained, they will question every single deposit he wants to make to this account...
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#2123110 - 03/22/17 04:21 PM Re: Rep Payee & POA Matt_B
Matt_B Offline
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We've always trained them that nothing paid to John Doe goes into or through the account if it's a rep payee account for the benefit of John Doe. At this point though, it seems internal policy is our only leg to stand on for why though. We also aren't typically interested in taking third-party checks, which they would have to be in order to put them in the rep payee account.

I'm very much against one-off exceptions, as staff has a tough enough time following black and white rules. This guy would create two policy exceptions in the same account, for an account that will generate zero income for us. But, at the end of the day it surprises me that were we to allow it, it would actually be legal and acceptable from the SSA's perspective.

Thanks for your input on this Ken, I appreciate it!
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#2123214 - 03/23/17 03:05 AM Re: Rep Payee & POA Matt_B
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Also, think about it this way:

The POA provides the agent authority to act on behalf of the principal without reducing or eliminating any of the principal's own inherent authority to act for him/herself. In your scenario, the agent's proposed action (placing the funds into an account that only the agent controls) would take control of the principal's funds away from the principal, when he has no legal basis (or authority) for doing so.

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