113 PROTECTIVE PAYEES (FAM)

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The individual receives an assistance payment to meet financial needs. The individual is responsible for meeting expenses with the assistance payment and any other income available. In some instances, however, it may be in the best interests of the individual to consider a protective or vendor payee.

A protective payee receives and controls the individual’s entire assistance payment when direct payment is not in the best interests of the individual or any dependent children due to mismanagement of funds.

Each allegation of mismanagement, which is brought to the attention of the District Office is evaluated. The facts of the allegation and the outcome is documented in the case file. The individual is notified of any allegations of mismanagement and the outcome of the investigation.

If the evaluation indicates that protective payments are necessary, all of the following shall occur:

1.  The individual is provided with a written advance notice of the appointment, removal, or change in a protective payee and the reason the action will be taken.

2.  Form 787, Authorization for Protective and Vendor Payments, is completed to initiate the action or to remove or change the protective payee.

3.  All notices of decision and assistance payments are directed to the protective payee, not to the individual.

References: He-W 608.01; He-W 608.02; He-W 686.01; RSA 167:5; RSA 167:26; RSA 167:83,II(g-h); 45 CFR 234.60

Editorial Revisions Made: 03/2024