The Important and surprising thing I learned today about social security from an article in Forbes.
Most of us or our family members apply for social security without much fuss or fanfare. Then, if we haven’t already done so, they come into my office to have their estate and long term care plan made. We prepare many documents, but the one I always say is most important is the Durable Power of Attorney. This is a document which allows someone to make decisions for you in any number of things including health, financial and personal. Imagine being in the hospital with no one (not even your spouse or child) being able to make decisions for you.
But there are few places that won’t take your Durable Power of Attorney. One is the Veteran’s affairs. They require their own document. And the other? Social Security Administration.
In 2018, Social Security passed a law which allows a person to choose one or more people to handle the person’s Social Security benefits. This person is called a Representative Payee. Just like with all choices of decision makers, this should be made with great care and contemplation.
So now as part of your estate plan, you need to contact the SSA and make an advance designation of a representative payee.
This can be done at any time and is very important. It allows your representative payee to move the account, ask questions etc. It’s an important part of one’s income and estate and should be part of proper advance planning.
The designee may be named using your “my Social Security ” account on the Social Security website or by contacting the SSA via telephone (800-772-1213) or at the local field office (though offices currently are closed due to the coronavirus pandemic). Designees also can be named through the mail by using Form SSA-4547 – Advance Designation of Representative Payee. (Although I have been unable to locate the form!)
Now isn’t this a good idea?
