If a payee misuses benefits, he or she must repay the misused funds to the beneficiary. Then, benefits may be used for the beneficiary's personal needs, such as clothing, recreation, and other expenses. If a beneficiary is in a nursing home or other institution, you should use benefits to pay the usual charges for care. Sometimes the representative payee for a Social Security or SSI beneficiary receives a large payment covering several months, or even years, of benefits. When this happens, it is particularly important for the representative payee to make plans to spend the money wisely.
Many payees are unsure about how to use a large sum of money.
The main thing to keep in mind is that the money must be used in the best interests of the beneficiary. Your first priority is to make sure the beneficiary's current needs are met. This includes food, shelter, medical care, and other items for the individual's personal comfort. If there's money left over after you have provided for these basic needs, you could spend the money on things that would improve the beneficiary's daily living conditions or provide better medical care. You also could arrange training for the beneficiary to help him or her have a more rewarding future and become more self-sufficient.