Social Security Rep Payee account for child benefits - requirement or just recommendation?

Yes, it's a requirement, not just a recommendation. When you're appointed as representative payee for your child, Social Security regulations require you to keep the benefits in a separate account that shows you as the payee on behalf of the child beneficiary. The account title should be something like "Jane Smith, representative payee for Alex Smith." Wells Fargo definitely offers representative payee accounts - I have one there for my grandson. You might need to speak with a different banker who's familiar with them. Most major banks offer these accounts, but sometimes the front-line staff aren't trained on them. And yes, SSA does verify this. You'll need to complete an annual Representative Payee Report where you account for how the benefits were used, and they can request bank statements as verification.

its NOT required to have special rep payee account!!! i've been getting my sons benefits for 3 yrs and just use regular checking account in my name. nobody ever asked to see bank statements, they just make u fill out that yearly form but they don't actually check anything

When I became rep payee for my niece, I found out the HARD WAY that yes, it IS required! I initially deposited her benefits into a regular savings account in my name (thinking I'd just keep track separately), and during my first annual review, they flagged it and made me open a proper representative payee account. Had to provide documentation that I'd transferred all the funds to the new account too. The annual reporting isn't too bad as long as you keep decent records of how you spend the money. Just save receipts for major purchases and keep notes about what the benefits are being used for (housing, food, clothing, etc.).

my daughter gets survivors benefits and i just put it in my regular checking account lol. been doing it for 2 years, never had a problem. the ssa office is so backed up they dont have time to check everyones bank statements

I've been dealing with this exact situation for my son's benefits. Here's what you need to know: 1. Yes, a dedicated Representative Payee account is REQUIRED, not optional 2. The account title must show you as payee for the beneficiary (like "John Smith, representative payee for Jimmy Smith") 3. You cannot mix the child's benefits with your own money 4. The child's Social Security Number should be used for tax reporting purposes I called around to several banks before finding one that properly understood Rep Payee accounts. If Wells Fargo is giving you trouble, try calling their main customer service line rather than just asking at a local branch. Sometimes the branch staff aren't familiar with these specialized accounts. And yes, SSA does check. You'll complete Form SSA-6230 (Representative Payee Report) annually, and they conduct random reviews where they can request account statements.

I had SUCH a headache trying to reach someone at Social Security to get clear answers about the rep payee requirements when my nephew started getting benefits! Called for weeks and kept getting disconnected or waiting for hours. Finally used a service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed I needed a dedicated rep payee account and even emailed me their official guidelines. Saved me so much time and confusion!

There's often confusion about this requirement. While SSA does technically require dedicated representative payee accounts, enforcement varies by field office. Some are strict, others barely check. But here's why you SHOULD use a proper rep payee account regardless: 1. Legal protection - keeps clear separation between your funds and the child's benefits 2. Easier accounting - simplifies the annual reporting process 3. Audit protection - you're covered if randomly selected for review 4. Transition planning - when your child turns 18, having a clear accounting makes the transition smoother Most credit unions offer fee-free rep payee accounts. If Wells Fargo isn't helpful, I'd recommend checking with a local credit union instead.

wat happens if SSA finds out ur not using seperate account??? do they take the money back or something????

Thank you everyone for the helpful responses! I called Wells Fargo's main customer service line like some of you suggested, and they transferred me to someone who actually knew about Rep Payee accounts. They DO offer them, and there's no monthly fee if I maintain a $500 minimum balance, which should be doable. I'm definitely going to set up the proper account before my daughter's benefits start. Better to do it right from the beginning than risk problems later. I've also started a simple spreadsheet to track expenses for the annual reporting requirement. Really appreciate all the advice!

Great to see you got it sorted out with Wells Fargo! Just wanted to add a heads up - when you go to open the Rep Payee account, bring a copy of your appointment letter from SSA (they should mail this to you) along with both your ID and your daughter's Social Security card. Some banks require these documents to set up the account properly. Also, that spreadsheet idea is smart! I'd suggest adding columns for date, amount, category (housing, food, clothing, medical, etc.), and a brief description. Makes filling out the SSA-6230 form so much easier when it's time for your annual report. Welcome to the rep payee club - it's really not as complicated as it seems once you get into the routine!

Just wanted to add my experience as another data point - I've been a rep payee for my disabled adult son for about 5 years now. The dedicated account requirement is definitely real and enforced, though as others mentioned, some people do slip through the cracks initially. What I've learned: SSA does periodic compliance reviews where they can request up to 3 years of bank statements. If you're not using a proper rep payee account, you'll have to scramble to prove you didn't misuse the funds. I've seen other parents in support groups get their payee status revoked for this. One thing nobody mentioned yet - make sure the account earns interest! Since you're holding these funds in trust for your daughter, any interest earned belongs to her, not you. Most banks offer interest-bearing rep payee accounts. It's not much, but over time it adds up and you're required to report it on the annual form anyway. Also, keep copies of EVERYTHING. The annual reports, bank statements, major receipts. SSA can audit up to 6 years back if they suspect issues.

For document organization, I use a three-ring binder with dividers for each year, plus a digital backup. Physical sections include: Annual SSA Reports, Bank Statements, Major Purchase Receipts ($50+), Medical Expenses, and SSA Correspondence. I scan everything and keep digital copies in cloud storage too - learned this the hard way when I needed to find a 4-year-old receipt during a review! For support groups, check Facebook for "Representative Payee Support Group" and "Social Security Disability Families" - both have active communities sharing practical advice. The National Disability Rights Network website also has good resources. One more tip: set up automatic transfers from the rep payee account to a separate savings account to build up funds for bigger expenses like school clothes, medical needs, etc. Just make sure both accounts are properly titled as rep payee accounts. This helped me avoid dipping into current month's benefits when unexpected costs came up. The learning curve feels steep at first, but you'll get into a good routine within a few months!

New rep payee here and this thread has been incredibly informative! I'm about to start receiving benefits for my nephew and had no idea about most of these requirements. One question I haven't seen addressed - what happens if the child moves to a different state? Do I need to notify SSA and potentially change banks, or can I keep the same rep payee account as long as it's properly set up? Also, for those of you doing the annual reporting - roughly how long does it take to complete the SSA-6230 form if you're keeping good records? Trying to set realistic expectations for myself since I'm already feeling a bit overwhelmed by all the documentation requirements! Thanks to everyone who shared their experiences - this is exactly the kind of practical advice you can't get from the official SSA website.

I'm new to being a representative payee and this entire discussion has been so enlightening! I had no idea there were so many specific requirements and best practices involved. One thing I'm curious about that I haven't seen mentioned - are there any restrictions on what types of purchases I can make with my child's benefits? I understand the money needs to be used for their care and support, but are there specific categories that are off-limits or require special documentation? Also, for those who have been through SSA reviews, do they focus more on the account setup compliance or do they scrutinize individual purchases? I'm wondering how detailed I need to be in tracking smaller day-to-day expenses versus just the major ones. The organization tips shared here are fantastic - I'm definitely going to implement the binder system and start that spreadsheet right away. It's clear that being proactive with record-keeping makes everything much smoother down the road!

As someone who's been managing rep payee accounts for multiple family members over the past 8 years, I can confirm that proper account setup is absolutely critical. I've seen the SSA become much more strict about enforcement recently - they're definitely ramping up compliance reviews. A few additional points that might help: **Bank shopping tip**: Don't just stick with your current bank if they're giving you trouble. I found that smaller community banks and credit unions often have staff who are more knowledgeable about specialized accounts like rep payee accounts, and they typically offer better terms (lower fees, higher interest rates). **Documentation strategy**: Beyond the great spreadsheet advice already given, I also photograph receipts with my phone and store them in Google Drive folders organized by year and month. Makes everything searchable and you never lose a receipt. **Red flag warning**: Be very careful about mixing funds even temporarily. I know someone who "borrowed" from their child's rep payee account during a tight month with full intention to pay it back, but got selected for review before they could replace the money. Even though they paid it back within two weeks, SSA removed them as payee and appointed a third-party organization instead. The good news is that once you get the system down, it really does become routine. And honestly, the discipline it teaches about financial tracking has helped me manage my own finances better too!

I'm just getting started as a rep payee for my younger brother who's receiving SSI benefits, and wow - this thread has been like a masterclass in what I need to know! I had our initial appointment with SSA last week and they barely scratched the surface on these requirements. One thing I'm wondering about that I haven't seen mentioned - do the rules differ at all between regular Social Security dependent benefits (like the original poster's daughter will receive) versus SSI benefits? I want to make sure I'm following the right guidelines since SSI seems to have stricter rules about resources and asset limits in general. Also, for those of you who've been doing this for years - do you have any advice on explaining the financial restrictions to older kids/teens? My brother is 16 and starting to ask questions about "his" money and why he can't just have direct access to it. I want to help him understand without making him feel like I'm controlling his life. The organization systems everyone has shared are amazing - I'm definitely stealing the binder + digital backup approach and that quarterly record-keeping schedule. Better to start with good habits from day one!