20 Cfr 725.511

§ 725.510

20 CFR Ch. VI (4–1–20 Edition)

rmajette on DSKBCKNHB2PROD with CFR

§ 725.510 Representative payee.
(a) If the district director determines
that the best interests of a beneficiary
are served thereby, the district director may certify the payment of such
beneficiary’s benefits to a representative payee.
(b) Before any amount shall be certified for payment to any representative payee for or on behalf of a beneficiary, such representative payee shall
submit to the district director such
evidence as may be required of his or
her relationship to, or his or her responsibility for the care of, the beneficiary on whose behalf payment is to
be made, or of his or her authority to
receive such a payment. The district
director may, at any time thereafter,
require evidence of the continued existence of such relationship, responsibility, or authority. If a person requesting representative payee status
fails to submit the required evidence
within a reasonable period of time
after it is requested, no further payments shall be certified to him or her
on behalf of the beneficiary unless the
required evidence is thereafter submitted.
(c) All benefit payments made to a
representative payee shall be available
only for the use and benefit of the beneficiary, as defined in § 725.511.
§ 725.511 Use and benefit defined.
(a) Payments certified to a representative payee shall be considered as having been applied for the use and benefit
of the beneficiary when they are used
for the beneficiary’s current maintenance—i.e., to replace current income
lost because of the disability of the
beneficiary. Where a beneficiary is receiving care in an institution, current
maintenance shall include the customary charges made by the institution and charges made for the current
and foreseeable needs of the beneficiary which are not met by the institution.
(b) Payments certified to a representative payee which are not needed for
the current maintenance of the beneficiary, except as they may be used
under § 725.512, shall be conserved or invested on the beneficiary’s behalf. Preferred investments are U.S. savings
bonds which shall be purchased in ac-

cordance with applicable regulations of
the U.S. Treasury Department (31 CFR
part 315). Surplus funds may also be invested in accordance with the rules applicable to investment of trust estates
by trustees. For example, surplus funds
may be deposited in an interest or dividend bearing account in a bank or
trust company or in a savings and loan
association if the account is either federally insured or is otherwise insured
in accordance with State law requirements. Surplus funds deposited in an
interest or dividend bearing account in
a bank or trust company or in a savings and loan association must be in a
form of account which clearly shows
that the representative payee has only
a fiduciary, and not a personal, interest in the funds. The preferred forms of
such accounts are as follows:
Name of beneficiary lllllllllllll
by (Name of representative payee) representative payee,
or (Name of beneficiary)
by (Name of representative payee) trustee,
U.S. savings bonds purchased with surplus
funds by a representative payee for an incapacitated adult beneficiary should be registered as follows: (Name of beneficiary) (Social Security No.), for whom (Name of payee)
is representative payee for black lung benefits.

§ 725.512 Support of legally dependent
spouse, child, or parent.
If current maintenance needs of a
beneficiary are being reasonably met, a
relative or other person to whom payments are certified as representative
payee on behalf of the beneficiary may
use part of the payments so certified
for the support of the legally dependent
spouse, a legally dependent child, or a
legally dependent parent of the beneficiary.
§ 725.513

Accountability; transfer.

(a) The district director may require
a representative payee to submit periodic reports including a full accounting
of the use of all benefit payments certified to a representative payee. If a requested report or accounting is not
submitted within the time allowed, the
district director shall terminate the
certification of the representative
payee and thereafter payments shall be

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