Representative Payee accounts are a form of fiduciary account that's created under and to some extent limited by Social Security Administration rules. In general, a fiduciary doesn't have the authority to make gifting decisions (absent specific authority given in, for example, a power of attorney). Gifting decisions are not included in the SSA's description of a Rep Payee's actions.
Add to that the fact that the beneficiary of the SSA funds is not necessarily incompetent under state law, and, if not incompetent, would have the right to name his/her own POD beneficiary for funds under his/her own control. But the Rep Payee account is not under the SSA beneficiary's control, so that route is blocked.
With that as background, I'd say it's not something that can be done. The SSA beneficiary whose funds are in the Rep Payee account should discuss the question with competent legal counsel.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8