113 PROTECTIVE PAYEES SR 97-27, 08/97 (FAM-A)

The individual receives an assistance check to meet financial needs. There is no restriction on how the money is to be used. 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.

Evaluate each allegation of mismanagement which is brought to the attention of the District Office. Document the facts of the allegation and the outcome in the case file. Notify the individual of any allegations of mismanagement and the outcome of the investigation.

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

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

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

3.  Direct all notices of decision, medical identification cards, and assistance payments to the protective payee—not to the individual.