My mother is suddenly very sick and in a nursing home. I am meeting with the social worker there and getting power of attorney.
Can I deposit her social security check in my account and pay her bills or do I need to open an account with her and my name on it? She is too ill to go to a bank to sign anything. (I live in Minnesota.)
If you want to be able to negotiate U.S. Treasury checks payable to your mother for Social Security benefits, you should ensure that the power of attorney describes the purpose for which the checks are issued and recite that it is not given to carry into effect an assignment of the right to receive payment, either to the attorney-in-fact or to any other person. If your mother becomes legally incompetent, the power of attorney should be "durable," or state that it is to remain in effect in the event of her incompetence. However, if she does become incompetent, you will only be able to use the power of attorney for six months from her date of incompetency. During that time, you will have to arrange with the Social Security Administration to be named a Representative Payee for your mother.
You should try to open an account in your mother's name, listing you as attorney in fact (once you've received the power of attorney). Some banks will send a representative to meet with your mother at the nursing home to get the account open (if she is still competent). Others may allow you to bring documents to her for signature. Ask the bank how to proceed. If your mother reaches the point at which you are named representative payee, the bank account will have to read "John Doe, Rep. Payee for Jane Doe," and you will be the only signer on the account.
Published on BankingQuestions.com 4/18/07
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If you want to be able to negotiate U.S. Treasury checks payable to your mother for Social Security benefits, you should ensure that the power of attorney describes the purpose for which the checks are issued and recite that it is not given to carry into effect an assignment of the right to receive payment, either to the attorney-in-fact or to any other person. If your mother becomes legally incompetent, the power of attorney should be "durable," or state that it is to remain in effect in the event of her incompetence. However, if she does become incompetent, you will only be able to use the power of attorney for six months from her date of incompetency. During that time, you will have to arrange with the Social Security Administration to be named a Representative Payee for your mother.