Social Security for my kids after I claim retirement benefits at 62 - confused about separate bank accounts

When I got widowers benefits for my kids the SSA made me a "representative payee" and I had to open seperate accounts for them. Every year, they mail me a form where I have to account for where the money went. It's not super detailed - just broad categories like food, housing, clothes, education etc. They don't ask for receipts but they say to keep them in case of an audit. It was kinda intimidating at first but its not bad once you get used to it. The money comes to you as the payee, not directly to the kids accounts.

You'll need to be appointed as a representative payee for your children. As a rep payee, you must keep their Social Security funds separate from your own. Most banks offer custodial accounts specifically for this purpose - you'd set them up as "[Your Name] as representative payee for [Child's Name]." The SSA will direct deposit the children's benefits to those accounts, not yours. You'll need to complete an annual Representative Payee Report showing how you used the benefits for each child's care and support (food, housing, clothing, medical care, education). While you don't need to submit receipts with the report, you should maintain records in case the SSA requests them during a review. Benefits must be used for current needs first, and any remaining funds should be saved in the designated account. Remember that benefits for your children are different from yours - they're receiving them based on your record because they're dependent minors.

my sister jst went thru this last yr. the payments come seperate. urs will be diposited to ur acct and kids to whatever acct u setup for them. she said the hardest part was the bank wanting lots of documents. bring ur ID and the kids socials and birth certificates when u go to setup the accts

As others have noted, you'll be appointed as a representative payee for your minor children. I just want to clarify an important point - while the funds must be kept separate from your personal money, they are absolutely intended to be used for your children's everyday needs including their portion of the household expenses. Many new payees mistakenly think they need to save all the money or only spend it on items exclusively for the child. The SSA recognizes that children's benefits help support the entire household. You can use the funds for their share of rent/mortgage, utilities, food, clothing, etc. Just keep basic records of how the money was spent in case you're ever audited. The annual Representative Payee Report is fairly straightforward and asks for general categories of expenses rather than line-item details. Also, any funds not needed for current maintenance should be saved in an interest-bearing account or US savings bonds for their future needs.

when i had to deal with SSA about my kids benefits after starting my retirement i spent DAYS trying to get someone on the phone!!!! kept getting disconnected or on hold forever. soooo frustrating!!!

forgot to say - when the kids turn 18 or graduate hs (if they're still in hs at 18) the benefits stop and whatever money is left in the acct belongs to them

Just went thru this process. SSA is SUPER strict about rep payee stuff. You MUST keep the money separate and you MUST use it for the kids. They made me feel like I was going to jail if I didn't follow the rules exactly lol. But the annual reporting isn't that bad. They just want to know general categories like "$X for housing, $Y for food" etc. Make sure to tell them if either kid gets a job that pays more than their monthly earnings limit - that can reduce their benefit amount!!

I forgot to mention - I found it helped to keep a simple spreadsheet for each kid showing the deposits coming in and the major expenses going out. Makes doing the annual report WAY easier. Don't wait till the last minute like I did the first year, lol.

After reading through all these comments, I want to emphasize that while being a representative payee does come with responsibilities, thousands of parents manage this role successfully. The SSA has resources to help, including a Guide for Representative Payees you can download from their website. One final note: if your 15-year-old is approaching 16, be aware they may be required to have their own direct deposit account when they turn 16, as some states allow banking at that age without an adult co-owner. Check with your bank about their specific policies for teen accounts.

I went through this exact situation 3 years ago when I started my retirement benefits at 62. The representative payee process seems overwhelming at first, but it's really manageable once you understand the basics. One thing I wish someone had told me upfront: contact your local SSA office BEFORE you file for your retirement benefits to discuss the rep payee appointment. They can often handle both applications simultaneously, which saves you time and paperwork. Also, don't stress too much about the "audit" aspect - in my experience, they're more concerned with making sure you're using the funds appropriately for the kids' needs rather than nitpicking every receipt. The annual report is honestly easier than doing your taxes. Just keep a simple record of major expenses and you'll be fine. Your kids are lucky to have a parent who's being so thoughtful about handling their benefits properly!

Just wanted to add one more tip from my experience as a rep payee - when you go to set up those separate accounts, ask the bank about their "representative payee" account options specifically. Some banks have special account types designed for this purpose that make the annual reporting easier by automatically categorizing transactions. Also, if you're worried about keeping track of everything, most banks now offer free monthly statements via email, and you can even set up automatic transfers from the kids' accounts to your main account for their share of household expenses like rent and groceries. This creates a clear paper trail that SSA likes to see. The whole process really isn't as scary as it sounds - you're already taking care of your kids financially, this just formalizes it a bit. Good luck with everything!

I've been a representative payee for my disabled adult child for over 10 years, and while the situation is a bit different, the core responsibilities are the same. One thing I'd add to all the great advice here is to take photos of any major purchases you make for the kids using their benefits - things like school clothes, computer for schoolwork, medical expenses, etc. It's not required, but having visual documentation has been helpful when filling out those annual reports, especially when you're trying to remember what you spent months ago. Also, if either of your teenagers has any special needs or medical expenses, make sure to keep detailed records of those - SSA considers medical care a priority use of benefits. The learning curve is real, but you'll get the hang of it quickly. Just remember that as their parent, you're already making decisions in their best interest - being a rep payee just means documenting it a bit more formally.