SPOTLIGHT ON DEDICATED ACCOUNTS FOR CHILDREN -- 2022 Edition

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WHAT IS A DEDICATED Account?

A dedicated account is a separate financial institution account that the representative payee of a disabled kid nether historic period 18 is required to open, when the child is eligible for big past-due payments (unremarkably whatever payment covering more than half-dozen months at the current benefit rate).

The by–due payments will be deposited directly into that "dedicated business relationship", and the apply of these funds is restricted.

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WHAT ARE THE REQUIREMENTS FOR THE Account?

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    A dedicated business relationship must be dissever from the account used for the regular monthly do good payment and can simply be a checking, savings, or coin market account.
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    Other funds, except for sure past–due Supplemental Security Income (SSI) benefits, cannot be commingled with the funds in the defended business relationship.
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    The business relationship cannot exist in the form of certificates of deposit, mutual funds, stocks, bonds, or trusts.
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    The title must show the child owns the funds, including interest.

HOW CAN Y'all Use THE MONEY IN THE DEDICATED ACCOUNT?

You can utilise the money merely for the following expenses:

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    medical handling, education, or chore skills preparation.

Nosotros also allow the following expenses, if they benefit the kid and are related to the child's impairment:

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    personal needs assistance (for example, in–home nursing care);
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    special equipment;
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    housing modification;
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    therapy or rehabilitation; or
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    other items or services approved past your local Social Security office, similar legal fees incurred by the child in establishing a claim for disabled child's benefits.

Yous may non apply these monies for basic monthly maintenance costs such as food, clothing, or shelter. Yous must utilise the regular monthly SSI benefit for the child's food, clothing, or shelter.

If there are whatever questions on employ 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 consummate a study on the utilise of the defended business relationship funds besides as the regular monthly benefits received on the child'due south behalf.

Therefore, it is very important for the representative payee to keep receipts, bank statements, and maintain an expense tape for at least two years every bit verification of expenditures. The representative payee should be able to provide Social Security with an explanation of whatever expenditure and how it relates to the child'south disability.

    NOTE If there is a alter of representative payee and a dedicated account exists, the former representative payee must complete a final accounting of the funds and return the residual of the business relationship to us. We will and so transfer the funds to a new dedicated account opened by the new representative payee.

Furthermore, after the child turns 18 and even if he or she is his or her own representative payee, the dedicated account provision nonetheless applies to the existing account. Coin can only be withdrawn in accordance with the dedicated account guidelines.

THIS INFORMATION IS GENERAL.
FOR MORE INFORMATION, CALL ane–800–772–1213 (TTY 1–800–325–0778),
VISIT OUR WEBSITE (www.ssa.gov) ON THE Net,
OR CONTACT YOUR LOCAL SOCIAL SECURITY Part.