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	<title>Child Support and Social Security Disability &#187; Misuse of funds by representative payee</title>
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		<itunes:summary>Just another WordPress weblog</itunes:summary>
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		<title>Custodial Parent Uses Auxiliary Benefits and Child Support on Beer and Dancing &#8211; What Can I Do?</title>
		<link>http://www.childsupportandsocialsecuritydisability.com/2011/01/custodial-parent-uses-auxiliary-benefits-and-child-support-on-beer-and-dancing-what-can-i-do/</link>
		<comments>http://www.childsupportandsocialsecuritydisability.com/2011/01/custodial-parent-uses-auxiliary-benefits-and-child-support-on-beer-and-dancing-what-can-i-do/#comments</comments>
		<pubDate>Wed, 12 Jan 2011 05:54:35 +0000</pubDate>
		<dc:creator>Jonathan Ginsberg</dc:creator>
				<category><![CDATA[Misuse of funds by representative payee]]></category>
		<category><![CDATA[Representative Payee issues]]></category>
		<category><![CDATA[auxiliary benefits]]></category>
		<category><![CDATA[fraud and social security]]></category>
		<category><![CDATA[how to report social security fraud]]></category>
		<category><![CDATA[misuse of child support]]></category>
		<category><![CDATA[modifications]]></category>

		<guid isPermaLink="false">http://www.childsupportandsocialsecuritydisability.com/?p=146</guid>
		<description><![CDATA[<p><a  href="http://www.childsupportandsocialsecuritydisability.com/wp-content/uploads/2011/01/12/custodial-parent-uses-auxiliary-benefits-and-child-support-on-beer-and-dancing-what-can-i-do/unhappy-parent.jpg" class="thickbox no_icon" rel="gallery-146" title="Parents swear, and children suffer"><img class="alignleft size-full wp-image-148" style="margin: 4px;" title="Parents swear, and children suffer" src="http://www.childsupportandsocialsecuritydisability.com/wp-content/uploads/2011/01/12/custodial-parent-uses-auxiliary-benefits-and-child-support-on-beer-and-dancing-what-can-i-do/unhappy-parent.jpg" alt="parent wasting child support" width="223" height="170" /></a>I have received several emails from unhappy non-custodial parents who are paying child support and/or whose children receive auxiliary benefits thanks to the non-custodial parent.   As one such reader wrote:</p>
<blockquote><p>How can the non-custodial parent control the use of the benefit for the  welfare of the child if the custodial parent is a chronic nonworking  individual who lives off welfare and the child support I provide  already?</p></blockquote>
<p><span style="text-decoration: underline;">Here are my thoughts:</span> there are really two issues here.  The first issue has to do with child support, which is a state court issue.  Generally, when a state court judge awards primary custody and child support, he does so with the belief and expectation that the custodial parent is best equipped to take care of the child or children.  Even when custody is evenly divided, a judge may award child support if he believes that the non-custodial parent needs the financial resources to best care for the child.<span id="more-146"></span></p>
<p><a  href="http://www.childsupportandsocialsecuritydisability.com/2011/01/custodial-parent-uses-auxiliary-benefits-and-child-support-on-beer-and-dancing-what-can-i-do/" class="more-link">Read more on Custodial Parent Uses Auxiliary Benefits and Child Support on Beer and Dancing &#8211; What Can I Do?&#8230;</a></p>
]]></description>
			<content:encoded><![CDATA[<p><a  href="http://www.childsupportandsocialsecuritydisability.com/wp-content/uploads/2011/01/12/custodial-parent-uses-auxiliary-benefits-and-child-support-on-beer-and-dancing-what-can-i-do/unhappy-parent.jpg" class="thickbox no_icon" rel="gallery-146" title="Parents swear, and children suffer"><img class="alignleft size-full wp-image-148" style="margin: 4px;" title="Parents swear, and children suffer" src="http://www.childsupportandsocialsecuritydisability.com/wp-content/uploads/2011/01/12/custodial-parent-uses-auxiliary-benefits-and-child-support-on-beer-and-dancing-what-can-i-do/unhappy-parent.jpg" alt="parent wasting child support" width="223" height="170" /></a>I have received several emails from unhappy non-custodial parents who are paying child support and/or whose children receive auxiliary benefits thanks to the non-custodial parent.   As one such reader wrote:</p>
<blockquote><p>How can the non-custodial parent control the use of the benefit for the  welfare of the child if the custodial parent is a chronic nonworking  individual who lives off welfare and the child support I provide  already?</p></blockquote>
<p><span style="text-decoration: underline;">Here are my thoughts:</span> there are really two issues here.  The first issue has to do with child support, which is a state court issue.  Generally, when a state court judge awards primary custody and child support, he does so with the belief and expectation that the custodial parent is best equipped to take care of the child or children.  Even when custody is evenly divided, a judge may award child support if he believes that the non-custodial parent needs the financial resources to best care for the child.<span id="more-146"></span></p>
<p>Usually the state court judge does not demand that the child support recipient account for the money received.  Nor do state court judges have the resources to monitor the behavior (i.e., the refusal of a custodial parent to get a job).  Judges also recognize that child support payers often have hostile feelings towards the custodial parents and decline to get involved in domestic spats.</p>
<p>Custodial parents will, of course, argue that child support is often awarded in an amount that is less than what is actually needed to care for a child.</p>
<p>The bottom line as far as state court child support is concerned is this: it will be an uphill battle for a child support payer to convince a judge to modify support or change custody.  As any domestic relations lawyer will tell you child support modifications are difficult and expensive and you will need evidence in the form of witnesses, receipts and/or video tape to convince most judges.</p>
<p>As far as Social Security benefits are concerned, the standards are a little different.  A child beneficiary is called an auxiliary and assuming that the child is not a legal adult, someone has to serve as the representative payee.</p>
<p>Usually SSA will appoint the custodial parent as the representative payee and that person has what amounts to a fiduciary duty to spend the auxiliary&#8217;s money for the benefit of that child.  Further, a rep payee must file annual reports setting out how that money was spent.</p>
<p>If a rep payee does not spend the auxiliary&#8217;s money properly SSA can commence a fraud investigation, revoke the rep payees authority and even demand repayment of wasted funds.</p>
<p>Over the years I have seen a few instances where SSA did conduct such an investigation.  However, SSA is currently in the midst of a budget crunch and I suspect that fraud investigations of custodial parents is not high on the list.  Still, if you suspect that the custodial parent is wasting funds and you have evidence of this, you can <a  title="Report fraud to SSA" href="http://www.ssa.gov/oig/guidelin.htm" target="_blank">report the alleged fraud to SSA </a>by clicking on the link.</p>
<p>I would be careful about reporting fraud unless you know that it exists and that there is evidence of same.   If you allege that the custodial parent of your child is misusing auxiliary SSA benefits, you are going to make an existing tense situation worse, if that is possible.  Further, if SSA concludes that your report of fraud was itself fraudulent you could face sanctions.</p>
<p>At the end of the day, both state court judges and Social Security decision makers are going to focus on what they believe is the best interest of your child, rather than any real or perceived that exist between you and your child&#8217;s other parent.</p>
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		<item>
		<title>What is Disabled Child&#8217;s Recourse if Parent/Representative Payee Misuses Disability Funds</title>
		<link>http://www.childsupportandsocialsecuritydisability.com/2009/11/what-is-disabled-childs-recourse-if-parent-representative-payee-misuses-disability-funds/</link>
		<comments>http://www.childsupportandsocialsecuritydisability.com/2009/11/what-is-disabled-childs-recourse-if-parent-representative-payee-misuses-disability-funds/#comments</comments>
		<pubDate>Wed, 25 Nov 2009 23:41:05 +0000</pubDate>
		<dc:creator>Jonathan Ginsberg</dc:creator>
				<category><![CDATA[Misuse of funds by representative payee]]></category>
		<category><![CDATA[Reader Stories]]></category>
		<category><![CDATA[Representative Payee issues]]></category>

		<guid isPermaLink="false">http://www.childsupportandsocialsecuritydisability.com/?p=87</guid>
		<description><![CDATA[<p><img class="alignleft size-full wp-image-88" style="margin: 4px;" title="argument" src="http://www.childsupportandsocialsecuritydisability.com/wp-content/uploads/2009/11/argument.jpg" alt="argument" width="180" height="270" />Most of the comments and questions I get on this blog come from parents who are trying to get child support or who have child support obligations but no source of income to pay.  This email comes from a teenager who was approved for disability and who contends that her parents are misusing funds that are supposed to be used for her care and welfare:</p>
<p><a  href="http://www.childsupportandsocialsecuritydisability.com/2009/11/what-is-disabled-childs-recourse-if-parent-representative-payee-misuses-disability-funds/" class="more-link">Read more on What is Disabled Child&#8217;s Recourse if Parent/Representative Payee Misuses Disability Funds&#8230;</a></p>
]]></description>
			<content:encoded><![CDATA[<p><img class="alignleft size-full wp-image-88" style="margin: 4px;" title="argument" src="http://www.childsupportandsocialsecuritydisability.com/wp-content/uploads/2009/11/argument.jpg" alt="argument" width="180" height="270" />Most of the comments and questions I get on this blog come from parents who are trying to get child support or who have child support obligations but no source of income to pay.  This email comes from a teenager who was approved for disability and who contends that her parents are misusing funds that are supposed to be used for her care and welfare:</p>
<blockquote><p>hi i am 17 i have been on disability since i was twelve i have a few questions. 1 my parents give me no money from it, nor do they allow me to do extra curricular activites with the money, archery, tae kon do art sculpting etc, is this legal of them? 2 they frequently use the money for the truck payement on a truck that is not neccasary nor running, they dont keep track of the money nor do they keep recepts. is that legal? 3 they wont let me work because it cancels the disability yet they give me no money from it, am i entitled to some money also can i turn them in or set up a confrence or court date to stop the ssi income since i am capable of working desire work and get no benefit from the check??? please i ask for your time soon cause i have to pay for damages and court costtts and cannot accuire work nor income fromm ssi to do so and i will be in comptemt thank you very much</p></blockquote>
<p><span style="text-decoration: underline;">Here are my thoughts: </span> Generally when a benefits are awarded to a minor child, those payments are sent to the that child&#8217;s parents or legal guardians who serve as the &#8220;representative payee&#8221; for that minor child.  The funds should be used for the health, education and welfare of the child.</p>
<p><a  title="Rep payee's obligations" href="http://www.ssa.gov/ssi/spotlights/spot-dedicated-accounts.htm" target="_blank">Social Security rules</a> provide that the representative payee may only use the child&#8217;s SSI benefits for the following purposes:</p>
<ul>
<li>medical treatment</li>
<li>education or job skills training</li>
</ul>
<p>The following expenses may also be paid from the child&#8217;s SSI account if they benefit the child and are related to the child&#8217;s impairment:</p>
<ul>
<li>personal needs or assistance (i.e. in-home nursing care)</li>
<li>special equipment</li>
<li>housing modification</li>
<li>therapy or rehabilitation</li>
<li>other items that are approved in advance by the local Social Security office</li>
</ul>
<p><span id="more-87"></span>Social Security requires the representative payee to complete an annual report detailing how and where the child&#8217;s money was spent.   Based on what my reader writes, payments on a parent&#8217;s truck would not be an appropriate expense.</p>
<p>If my reader or anyone who is receiving SSI or Social Security disability benefits through a representative payee and the disabled person suspects that the payee is misusing funds, the claimant should contact his or her local Social Security office and ask that an investigation be commenced.  You can also call Social Security&#8217;s national toll-free number of 800-772-1213 for assistance.</p>
<p>Let me stress that reporting suspected misuse of funds by a representative payee is a very serious charge and can lead to fines or even criminal charges if the allegations are correct.  For this reason, payees should keep detailed and accurate records and claimants who have a payee should not make frivolous allegations against their payees.</p>
<p>The accusations set out by my reader are serious and, if true, would likely result in action by SSA against her parents.</p>
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