Parent misusing child’s Social Security benefits?

The responsibilities of a Social Security payee have come up a lot in the comments recently:

I don’t live with my parents for 3 years but they get my disability check. They don’t give me any or pay any to the place I live.

What if parent is receiving benefits for a child not living with her and keeping the money for herself.

Social Security has good information about payee responsibilities, written in nice clear language. Concerning how a parent can use a child’s Social Security (survivor’s or disability) benefits:

First, you must make sure the beneficiary’s day-to-day needs for food and shelter are met. Then, the money can be used for any of the beneficiary’s medical and dental care that is not covered by health insurance, and for personal needs, such as clothing and recreation. If there is money left after you pay for the beneficiary’s needs, it must be saved, preferably in an interest-bearing account or U.S. Savings Bonds.

A payee has to annually complete a worksheet describing how the benefits were used:

Each year, Social Security will ask you to complete a form to account for the benefits you have received. … Remember, the law requires representative payees to use the benefits properly. If a payee misuses benefits, he or she must repay the misused funds. A payee who is convicted of misusing funds may be fined and imprisoned.

For large payments, such as payments of past benefits, Social Security provides the following recommendations:

After you have provided for the beneficiary’s basic needs, you may spend the money to improve the beneficiary’s daily living conditions or for better medical care. You may decide to use the beneficiary’s funds for major health-related expenses, if they are not covered by the beneficiary’s health insurance. Examples of these expenses are reconstructive dental care, a motorized wheelchair, rehabilitation expenses or insurance premiums.

You could use the money to arrange for the ­beneficiary to go to school or get special training.

You also could spend some of the money on the beneficiary’s recreational activities, such as movies, concerts or magazine subscriptions.

You may want to make some of the following special purchases for the beneficiary.

  • A home””You can use funds as a down payment, and you can use some of the money to make payments on a house owned by the beneficiary.
  • Home improvements””You can pay for renovations that make the beneficiary’s home safer and more accessible; for example, installing a wheelchair ramp or widening doorways to accommodate a wheelchair.
  • Furniture””You can buy furniture for the beneficiary’s personal use, as well as items that may be shared with other members of the household, such as a television.
  • A car””You can use funds as a down payment, and you can use some of the money to make monthly car payments as long as the car is used for and owned by the beneficiary.

If you are not sure whether it is okay to use the money for a specific item, (for example, paying a bill the beneficiary owed before you became payee), contact your local Social Security office before you spend the money.

To continue receiving SSI, a beneficiary must not have resources worth more than $2,000 ($3,000 for couples). Although not all resources are counted, some of the items you may buy with the money could be worth so much that the beneficiary would be ineligible for SSI benefits. Any money you do not spend could also count as a resource. You should check with your local Social Security office before making a major purchase for an SSI beneficiary.

The payee also has reporting responsibilities including if you (the beneficiary) moves or if the payee (your mom, your dad, or someone else) is no longer responsible for you:

You need to tell Social Security about any changes that may affect benefit payments. As payee, you are responsible for repaying money you received on behalf of the beneficiary if any of the events listed below occur and you do not report them. For example, tell us if:

  • The beneficiary moves;
  • The beneficiary starts or stops working, no matter how little the amount of earnings;,
  • A disabled beneficiary’s medical condition improves;
  • The beneficiary starts receiving another government benefit or the amount of the benefit changes;
  • The beneficiary will be outside the United States for 30 days or more;
  • The beneficiary is imprisoned for a crime that carries a sentence of more than one month;
  • The beneficiary is committed to an institution by court order for a crime committed because of a mental impairment;
  • Custody of a child beneficiary changes or a child is adopted;
  • The beneficiary is a stepchild, and the parents divorce;
  • The beneficiary gets married;
  • The beneficiary no longer needs a payee; or
  • The beneficiary dies.

You also must tell us if:

  • You are no longer responsible for the beneficiary;
  • You move;
  • You no longer wish to be payee;
  • You are convicted of a felony; or
  • You are violating a condition of your probation or parole imposed under federal or state law.

If you believe benefits are being misused, call Social Security at 1-800-772-1213 or contact your local Social Security office.

Image provided by Ryan McGuire.

  • Social Security Disability

    It is good that there are measures in place to prevent parents from misusing their children’s disability benefits.

    One would think a parent would not do such things, but it is often not the case. 

  • Kepleygal

    will my son get disabilty payments for time when i was found to be disabled, he was 17 and went to school until he turned 20, now he works and i was just awarded favorable for disability for the past 3 years, will he get payed for when i was disabled before he turned 20 still?…thank you

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  • ANN


    • brittney

      Call ss office and ask

  • http://www.facebook.com/stephanie.plowman.96 Stephanie Plowman

    I have a question. My husband shares joint custody with his son’s maternal grandparents. We just found out that the grandparent’s were receiving SSI (our son has autism) payments from Feb. 2011 to October 31st 2011. They also gave him a medicaid card. Now all of this would seem ok, except that my husband was paying 500 dollars a month in child support in Feb. 2011 and they increased it to 840 with the first payment beginning on August 1st. My husband has always been court ordered to pay for 50% of his medical bills as well. The grandfather is a pastor at a pretty well-to-do church. We were never notified that they were receiving SSI payments, nor did they say anything about the payments when they increased our child support. (they increased it because we were asking for more visitation). We cannot figure out how he would have been eligible?

  • Erniejay

    My daughter gets disability for both her daughter and her son which are autistic .She has a boyfriend and he take the debit card that is givin to her by ssa for the children and buys apparel and shoes ,haircuts for him self the guy does not work and lives off the money that is for my grand children .Now would I be wrong if I call ssa on my daughter . PPlease reply

    • http://stasiukfirm.com/ TomaszStasiuk

      You said it yourself, the money is for the kids.

  • jenniferlucas

    My 2daughter r recieving a sss $300 a month each why its to low is not enough.for expenses.

  • kash

    can a parent refuse to give the money to the child receiving benefits after the child turns 18 and is old enough to use it

  • Mary ruiz

    im curious when i was 18 my dad filed for social security for me as a dependent i had no idea why or why i was getting that check for him? how does that effect me when I apply for it?

  • Tyresha

    I need advice concerning my sister SSI. She signed a document saying she was incapable but thought she was signing for her rights to have her own money. My mom told her it was for her to have her own money but lied. She wants to change her payee due to my mom misusing her funds. How can she go about this? Will reporting the SSI midused stop the funds until further investigation? PLEASE HELP!!!

  • Corey

    Hi my dad is misusing ssd money on drugs and takeing my check as well and blowing on drugs he is selling useing and buying them like oxy 30 ect the list gos on and on how can i report him to social secruity and oh by the way he dosent go to a doctor at all. By law dosent he have to go see a doctor for even being on social secruity disability on his

  • Sharron Daniels

    My sons father is the payee of my sons disability benefits that he gets on my behalf but doesn’t give me any money when i have my son is this ok

  • Donna Boatman-Riley

    My brothers divorce is not yet final. No custody or child support has been determined. There is a large sum back pay of ssdi for the minor child drawn on behalf of her injured father. The Court for now has a freeze on the funds until decisions are made. No custodial parent has been determined yet either. That back pay sum is to be used for child support. My question…how is a judge to possibly rule. The Mother earns nearly $30,000 gross funds more than the father, who’s only income is $1300 gross per month or $15,600 gross annually. The state is Illinois. It would seem logical to split those funds equally between mother and father – as stated by ssdi the funds are to only be used for the child. My brother would like to take those funds and set up an educational fund for her. The Mother will most likely not go for that. The child is 9. Per ssdi the auxillary benefits are to only be used for the immediate need of the child…the monthly ssdi will be $700. Again, the large lump sum of nearly $13,000 back pay is ruled how? The $700 monthy should be adequate for now to cover said childs immediate needs. Any suggestions on this?

  • KK from NC

    can my mom use MY and MY BROTHERS SSI and disability money to bail her deadbeat boyfriend out of jail while both of them sit on the lazy butts and then do drugs and drink with our deceased fathers money. While all along off an on over the past years neither myself or my brother have been taken care of properly by my mother.
    my brother is 14 and I am 16 and he is in a wheelchair, cannot walk and I take care of him the best that I can while m y mom does nothing to help but take in this ass of a boyfriend that does nothing but make matter worst.

  • Trey Bailey

    Can someone who acutal email me asap. Baileytrey1007@gmail.com

  • josh

    Im soon to be 18 but I go too school and will continue to receive social security money but my mother refuses to give it me to help buy a car or pay for car insurance is there anyway I can make it where i have access but not her.

    • Angie

      The money will be put into your name into your bank account. SSD will make your mom fill out a form to have the money transfered into your name. If she doesn’t do that, you both will lose it.