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How you must use monthly benets
First, you must take care of the beneciary’s day-to-day
needs for food and shelter. Then, you must use the
money for the beneciary’s medical and dental care that’s
not covered by health insurance. You can also pay for
the beneciary’s personal needs, such as clothing and
recreation. You must save any money left after you pay
for the beneciary’s needs, preferably in U.S. Savings
Bonds or an interest-paying bank account. This must be
insured under either federal or state law.
If the beneciary is in a nursing home or institution, use
their benets to pay the fees. In this case, you should
set aside a minimum of $30 each month to use for the
beneciary’s personal needs.
If the beneciary is in an institution and gets Medicaid,
or is a member of a family on Temporary Assistance for
Needy Families (TANF), contact us. We can inform you
about using benets for the family.
You may not take a fee from the beneciary for your
services as a representative payee. If you have questions
about this, contact your local Social Security ofce.
How to handle a large payment of
past-due benets
In certain instances, we will pay past-due benets all
at once in a lump sum, which may be a large amount.
First, you must spend the money on the beneciary’s
current needs such as rent and a security deposit, food,
or furnishings. After paying these expenses, you may
spend the money to improve the beneciary’s daily living
conditions or for better medical care. Spend the money
wisely. You should use the money in the beneciary’s
best interests. Then, if there’s money left over, you