A 90-year-old woman could soon lose her Supplemental Security Income benefits due to a paperwork issue — and her only surviving relative is racing against time to resolve it.
The woman, who lives in an assisted living facility and has been in a fragile state for years, recently became the focus of a situation that's raising questions about how Social Security handles representative payee assignments for beneficiaries who cannot manage their own money.
SSI Benefits in Jeopardy Without Payee
According to a post shared on Reddit's r/SocialSecurity forum, the woman's daughter-in-law received a call from the Social Security Administration in May, saying the woman needs a new representative payee — someone officially approved to manage her SSI benefits. Without one, her payments could be suspended.
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The challenge: Her daughter-in-law is not a direct relative, and the assisted living facility where the woman resides won't serve in that role. "They don't do it and don't have capacity for it," the poster explained.
Though she already holds financial power of attorney and is a co-signer on the account, she fears her application to become an official payee may be rejected.
To make matters worse, the woman’s son — her only child — died in June. No other family members remain to step in.
What Is a Representative Payee?
A representative payee is someone appointed by the SSA to manage benefit payments for individuals who cannot do so themselves due to age, illness, or disability. According to the SSA, they prefer to assign family or friends — and in many cases, a daughter-in-law could qualify. However, the individual must still go through an official approval process.
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If that's not possible, they may appoint a qualified organization; however, the assisted living facility where the woman resides has already said they don't have the capacity to take on that role.
A power of attorney or being a joint account holder is not enough. Only someone officially appointed through SSA's process — usually by completing Form SSA-11 — can serve in this role.
Options Still Available
Reddit users familiar with the system offered potential solutions. One pointed out that the bank has no say in who becomes a representative payee — that authority lies solely with the SSA. Others noted that while financial power of attorney is helpful, it doesn't carry the same legal weight as being a court-appointed guardian or SSA-approved payee.
Some commenters recommended contacting the local Adult Protective Services office or the Department of Health Services to explore options for guardianship. Another suggested working with a local ombudsman, who may assist in navigating this process, especially when language barriers and cognitive issues are involved.
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If the woman is still capable of signing paperwork, she may be able to designate her daughter-in-law as her preferred payee. However, in cases where the beneficiary can't understand or make decisions, SSA must determine someone appropriate to manage the funds.
A Complicated System With Real Consequences
This case highlights a critical issue facing many older adults: when mental capacity declines and family networks shrink, managing government benefits can become a bureaucratic maze.
The SSA encourages anyone concerned about a beneficiary's ability to manage their payments to call 1-800-772-1213 or visit their local office. When no friends or family are available, the SSA may assign a professional or organizational payee to ensure benefits are still used for the recipient's well-being.
In the meantime, families like this one continue searching for answers — and solutions — to avoid the unthinkable: a senior citizen losing access to the support she depends on.
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Image: Shutterstock
