OTHER FIDUCIARY SERVICES

SOCIAL SECURITY PAYEE

Overview

The largest benefit program administered by the SSA is the Retirement, Survivors and Disability Insurance (RSDI) program, commonly referred to as Social Security.  The second largest program is the Supplemental Security Income (SSI) program.  These programs may be the sole source of income for many Americans.

Social Security is a social insurance program that protects workers and their families from a loss of earnings because of retirement, death, or disability.  Social Security benefits are entitlements based on the earnings of workers who have made contributions into the system.

SSI is a Federal income maintenance program for aged, blind, and disabled persons with little or no income or resources.  The United States Treasury's general funds provide financing for this program; funding is NOT from Social security contributions.  SSI is a needs-based program and the amount of resources or income an individual has may affect eligibility to payments.

When an adult is unable to manage or direct the management of his or her own funds SSA may need to appoint a representative payee.  SSA usually looks for a payee among the beneficiary's family and friends.  For a small segment of the population, these traditional networks of support are not available.  SSI rely's on state, local, or community sources to fill the need.

Payees play a vital role in serving SS or SSI beneficiaries.  They help to ensure that benefit payments are used for basic needs first, providing the beneficiary with a more stable living environment.  Once a beneficiary's basic needs are met, amy funds leftover must be saved for that specific beneficiary's future use. 

What is a Representative Payee?

A representative payee is an individual or organization appointed by SSA to receive Social Security and/or SSA benefits for someone who cannot manage or direct someone else to manage their money.  The main responsibility as a payee is to use the benefits to pay for current and foreseeable needs of the beneficiary. 

Who Needs a Representative Payee?

SSA assumes adult beneficiaries are cable of managing their money unless there is evidence to the contrary.  When SSA determines a beneficiary cannot manage or direct someone else to manage their Social Security and/or SSI benefits a representative payee is appointed by SSA.

What are the Duties of a Representative Payee?

• Determine the beneficiary's current needs for day-today living and use the SS and/or SSI payment to meet these needs;

• Save any money leftover after meeting the beneficiary's current need in a checking or savings account.

• If a large payment representing several months or years of benefits should be spend or conserved wisely, in the best interest of the beneficiary.

• Report any event that affects the beneficiary's payment or entitlement to benefits and promptly return any payment that the beneficiary is not due.

• Keep written records for at least 2 years of all payments received from SSA, bank statements and cancelled checks, receipts or cancelled checks for rent, utilities, and major purchases made for a beneficiary.

• Return all conserved funds to SSA if you stop being the beneficiary's payee.

• Notify SSA if the beneficiary dies and return any conserved funds to the legal representative of the beneficiary's estate

Our Fees for Social Security Representative Payee Services

2010 Fee based on SSA guidelines                      $37/month*

*Plus out of pocket expenses - postage, banking online fees, long distance, etc.

GENERAL DURABLE FINANCIAL POWER OF ATTORNEY

A legal instrument created by a competent adult giving an agent the authority to act on the behalf of the grantor with best interest while looking out for the grantor's welfare.  

Under a General Durable Financial Power of Attorney the agent may have the following powers:

• collect and manage any or all real or personal property
• buy and/or sell any real or personal property
• borrow money
• conduct all business and banking
• file tax returns and reports
• access to bank deposit box
• act as a proxy for stocks, bonds, shares, or other investments
• to hire any attorney
• transfers in trust
• delegate authority

A Durable Power of Attorney can be as specific or as general as the grantor chooses and it can specific limit an agents ability to act by restricting the agents power in the document.

This document needs to be signed by the grantor and by a notary.

DURABLE MEDICAL POWER OF ATTORNEY

THE LIVING TRUST

Introduction

A trust refers to property held ny a "trustee", which may be one ore more individuals or an institution such as a bank. A living trust does not become effective until the grantor dies, so that during their lifetime the trust can be modified or revoked.  When the grantor dies the trust takes effect and is managed by the grantors choice of trustees, pursuant to the instructions left in the trust document.  A living trust us a powerful tool to avoid probate, as trust assets are normally distributed independently of the probate process.

Our Role

GCS, LLC can serve as the trustee, co-trustee or successor trust of any living will.  Our work wil be directed by the trust document.

Terminology

Grantor/Settlor/Trustor - the person who has created the trust

Corpus - the property placed into the trust

Testamentary Trust - a trust created by a will

Living Trust/Inter Vivos Trust - a trust created by a living grantor

Revocable - The trust can be changed

Irrevocable - The trust cannot be changed

A Word of Caution

If you intend to place assets within a living trust while you are alive, make sure that the transfers are made.  There have been many cases where people set up detailed living trusts, but neglect to fund them, with the result that they paid for a trust they did not use and their assets passed according to the laws of intestate succession instead of as they intended.