WHAT IS A DEDICATED ACCOUNT?
A dedicated account is a separate financial institution account that the representative payee of a disabled child under age 18 is required to open, when the child is eligible for large past-due payments (usually any payment covering more than six months at the current benefit rate).
The past–due payments will be deposited directly into that "dedicated account", and the use of these funds is restricted.
WHAT ARE THE REQUIREMENTS FOR THE ACCOUNT?
HOW CAN YOU USE THE MONEY IN THE DEDICATED ACCOUNT?
You can use the money only for the following expenses:
We also allow the following expenses, if they benefit the child and are related to the child's impairment:
You may not use these monies for basic monthly maintenance costs such as food, clothing, or shelter. You must use the regular monthly SSI benefit for the child's food, clothing, or shelter.
If there are any questions on use of the funds, contact your local Social Security office.
HOW WILL SOCIAL SECURITY MONITOR THE DEDICATED ACCOUNT?
Each year, we will require the representative payee to complete a report on the use of the dedicated account funds as well as the regular monthly benefits received on the child's behalf.
Therefore, it is very important for the representative payee to keep receipts, bank statements, and maintain an expense record for at least two years as verification of expenditures. The representative payee should be able to provide Social Security with an explanation of any expenditure and how it relates to the child's disability.
Furthermore, after the child turns 18 and even if he or she is their own representative payee, the dedicated account provision still applies to the existing account. Money can only be withdrawn in accordance with the dedicated account guidelines.
THIS INFORMATION IS GENERAL.
FOR MORE INFORMATION, CALL 1–800–772–1213 (TTY 1–800–325–0778),
VISIT OUR WEBSITE (www.ssa.gov) ON THE INTERNET,
OR CONTACT YOUR LOCAL SOCIAL SECURITY OFFICE.