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Blind or Disabled Children Receiving SSI

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1621. Blind or Disabled Children Receiving SSI

1621.1 What funds must be paid into a dedicated account?

Certain large, past-due SSI payments to blind or disabled children covering more than six months of payments must be paid directly into a separate, "dedicated account" in a financial institution.

1621.2 What is a "dedicated account?"

We call this separate account a "dedicated account" because funds in this account may be used only for certain expenses, primarily those related to the child's disability.

1621.3 How should the dedicated account be maintained?

The dedicated account must be maintained as follows:

  1. It should be separate from any other savings or checking account set up for the beneficiary; and

  2. Except for certain subsequent underpayments, no other funds may be combined in the account.

1621.4 Is money in the account counted as a resource?

Money in the dedicated account is excluded from counting as a resource. Also, interest earned on the money in a dedicated account does not count as income or a resource.

1621.5 How can the money in a dedicated account be used?

Money in a dedicated account must be used only for the following allowable expenses for the benefit of the child:

  1. Medical treatment and education or job skills training;

  2. If related to the child's disability, personal needs assistance, special equipment, housing modification, and therapy or rehabilitation; and

  3. Any other item or service related to the child's disability that SSA determines to be appropriate.

If the payee is not clear if an expense in this category is appropriate, the payee should first get SSA's approval.

1621.6 If the payee uses the money incorrectly, what should be done?

A payee who uses money from the dedicated account for anything other than the expenses shown above must repay the SSA from his or her own funds in an amount equal to what was spent.

1621.7 What records must be kept of the account?

The representative payee must keep a record of all money taken from this account and receipts for all items or services bought. These records must be maintained for a minimum of two years because we may periodically ask to review these records.

Last Revised: Aug. 2, 2007

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Not affiliated with the US Social Security Administration