Can a credit union transfer direct deposited SSI benefits of a disabled child to offset a debt owed by the child's representative payee, if the account in which the SSI funds are deposited to is a POD account with the disabled child listed as the beneficiary and the representative payee on the account heading? The account was set up by the credit union for the benefit of the child's SSI deposit.
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To start with, the account is set up incorrectly. It should be set up "Jane Jones, Rep. Payee for Sarah Smith," or "Sarah Smith, by Jane Jones, Rep. Payee." It should be clear that the funds in the account are those of the child and not those of the representative payee. SSI payments are not supposed to be set off, but the credit union may not be aware of that fact, so the faster that you get the account correctly set up, the sooner you will be able to avoid having problems with set-off.
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To start with, the account is set up incorrectly. It should be set up "Jane Jones, Rep. Payee for Sarah Smith," or "Sarah Smith, by Jane Jones, Rep. Payee." It should be clear that the funds in the account are those of the child and not those of the representative payee. SSI payments are not supposed to be set off, but the credit union may not be aware of that fact, so the faster that you get the account correctly set up, the sooner you will be able to avoid having problems with set-off.
