TN 6 (09-97)

Where an individual applies to be the representative payee of a beneficiary who is physically, but not mentally, incapable of managing funds, the file must be documented as follows:

1. Secure the beneficiary's consent that the individual filing as representative payee may receive and manage the funds for him/her. If the beneficiary is unable to sign this consent statement, a Report of Contact is sufficient.

2. The file must provide an explanation showing why the beneficiary is physically unable to manage his own funds. This can be the beneficiary's description of his condition, the consular representative's observations as to his condition, the statement of the payee applicant, etc.

3. If readily available, secure a statement from a physician describing the beneficiary's condition.

Example:

Banking practices in the village where a disability beneficiary resides require that the beneficiary must appear in person at the bank to cash the monthly benefit checks. There is no other way the beneficiary can cash the checks, and yet his physical condition is such that it could endanger his health if he had to make monthly trips to the bank. In this case, the circumstances would justify appointment of a representative payee for the beneficiary. There must be a physical illness or impairment which prevents the beneficiary from managing his own affairs and going to the bank every month.