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Patrick Cawley · Jun 16, 2025 · 6 min read

Why Power of Attorney Doesn't Work for Social Security

The devoted daughter of a mother living with dementia calls me. The daughter has been managing her mother’s bills, keeping every account statement, and making every doctor appointment. The power of attorney has been a lifesaver, allowing the daughter to stand in her mother’s shoes and satisfy every adult responsibility that her mother used to handle.
The daughter explains that she was the victim of a scammer. Someone gained access to her computer, and she fears that the scammer now has online access to her mother’s bank account. She called me immediately after getting a new computer and getting things set up again to support her mom. The daughter wants to close her mother’s bank account and open a new account. The problem is that her mother’s Social Security income is directly deposited into the account that she wants to close.
The daughter asks, “How do I use my power of attorney with the Social Security Administration?”
On the same day, I hear from a son who is supporting his aging father. The father has gotten into the habit of swiping a debit card for anything that he wants or needs to buy. The father has no idea how much money is in his bank account. The son sees that his father will easily spend more money than the income Social Security deposits into the account. The son wants to use a pair of scissors on the debit card and manage the Social Security income for his father. The son has the power of attorney for his father.
In either case, my answer will be the same. Don’t bother trying to use the power of attorney with the Social Security Administration (SSA). They won’t accept it.
Here’s what the daughter or the son should do instead. The son or daughter will become the “representative payee” for the parent.
Step One
  • Yes, you will have to go in person and speak with someone at the SSA office.
  • Explain when making the appointment that your family member can no longer manage finances, and you would like to become the representative payee.
Step Two
The point of the meeting with the local SSA office is to present evidence that your family member is not capable of managing the retirement benefits.
  • At the appointment, you will complete Form SSA-11.
  • You will also need to show that you are a dependable person to manage the benefits for your family member.
  • You will need to show your ID and provide your own Social Security number.
  • The SSA may ask for any medical evidence showing that your family member is unable to manage money. A doctor’s letter or the report from a recent doctor's appointment may be helpful.
While you are gathering these pieces of evidence for your appointment, the power of attorney may still be helpful. It shows that your family member trusted you enough to name you as the responsible person to manage financial matters in the event of the family member becoming unable to do so.
Bring the power of attorney with you to the appointment. If you have been appointed by a court as guardian or conservator, definitely bring the court order that appointed you to the appointment.
Step Three
After the appointment, you will wait for approval. The SSA will notify you that you can begin to manage your family member’s benefits.
Step Four
Know how to serve as the representative payee. Here are a few pointers:
• A power of attorney, guardianship, or conservatorship tends to involve quite a bit of work on your part. You already know that. But in those roles, you are permitted to pay yourself a reasonable amount for your time and effort. You may not pay yourself for work done as representative payee.
• What about reimbursements? Say you buy the stamps to mail bill payments or put miles on your car to take your family member to doctor appointments. Can you then pay yourself back out of the family member’s Social Security income? Yes, you can! But you will want to keep careful records and receipts, just as you should be doing in your role with the power of attorney, guardianship, or conservatorship. You may want to discuss known expenses that you currently cover yourself when you meet with the SSA.
A helpful resource for all of your caregiving record-keeping is called Advocord (www.advocord.com). You can snap pictures of receipts with your phone and all of your records go into organized files in your account. This organization will serve you well with all future dealings with the SSA, long-term care Medicaid, or even the settling of your family member’s estate when he or she passes away.
• Know that you will be required to complete annual reports to the SSA about how you are managing your family member’s Social Security benefits. The SSA will send you a notice about the reporting, and there is a way to complete your reports online.
• You will need to set up a new bank account to receive the Social Security income. When you create the account with the bank, it must be clear that the money in the account belongs to your family member and you are the representative payee. The statements from the account will be part of your reporting to the SSA. Try to find a bank that will not charge service fees, especially if the amount of Social Security income is low. All Social Security income should go to this account. Do not mix Social Security income with your account or any other account!
• Over time, while keeping good records, you will use the Social Security income for basic needs, such as food, clothing, housing costs, and health care expenses. Otherwise, you will save the money and any interest that the money earns.
• You will need to notify the SSA if your family member dies, moves, goes into a nursing home, or has some other significant change in circumstances. If you can no longer serve as representative payee, you will need to notify the SSA about that as well.
Keep in mind that this representative payee process only applies to your management of the Social Security income. You will keep using your power of attorney, guardianship, or conservatorship to sign forms, manage money, and pay bills that are unrelated to the SSA.
Whenever you have questions, you can contact your local SSA office or call the national number: (800) 772-1213

Patrick Cawley Owner and Attorney www.KeystoneElderLaw.com
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