Three researchers associated with the Center for Retirement Research at Boston College have taken a look at representative payees and retirees with dementia. Representative payees help those who can no longer manage their money. Usually, representative payees are family members or friends.
It turns out that while over 10% of retirees have dementia, only 1.5% have a representative payee. The report notes that many of those without a representative payee receive help anyway. For those with mild cognitive impairment 85% have some help and 95% of those with dementia receive help. As a personal aside, I'm familiar with how this happens. I've ended up handling the financial affairs of two relatives with dementia who have since passed away. In neither case was I appointed representative payee.
I think the personal story you shared reflects the bulk of cases. A family member or friend is providing those services without going through the hassle of becoming Rep Payee. Really, unless there is a problem on the record it causes no harm and isn't much of a problem to the Claimant or the agency, so no harm no foul.
ReplyDeleteNo surprise here. Most likely, they have been receiving retirement or survivor benefits for years. They years have finally taken their toll but there was no payee necessary when the claim was originally adjudicated and they probably have a relative handling their money, who may even have power of attorney. Technically, they should have a payee but people don't want to bother with the technicalities when it isn't necessary.
ReplyDeleteWhy would anyone bother going through the process of filing to be representative payee when they can just help their elderly parent or aunt/uncle? There are advantages to filing to be rep payee but also some disadvantages. Overall, as a CR, I don't recommend it if someone close to the person is helping them with their finances. I didn't do it for my parents when they would have needed a payee.
ReplyDeleteI advise a lot of people at work against it, especially for those with elderly parents on SSI. Most folks don't understand the program, and if they're in and out of care facilities it's tremendously easy to generate an overpayment (which they as payee are now on the hook for).
ReplyDeleteIf you have the ability through power of attorney to make decisions at their bank for them, then you've eliminated 90% of the requirement for a payee anyway.
Sort of like a power of attorney or insurance. You don't really need it until you REALLY need it and then it's too late...like someone mentioned...this is something that those that live around the claimant need to knowledgeable of. If Soc Security is AWARE of the who..what...where...when and how? Then they are the best candidates to identify and act in some manner...who is going to voluntarily act on this.....the individual with dementia? Would they be reasonable expected to designate someone along with the complications that this process can result in?
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