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  1. #1
    Join Date
    Dec 2016
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    10

    Default Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    My mother passed away in November. I filed to be representative payee got approved. Question I have Can I use the funds from my brother to buy a car out right? This car was our mothers car and its a 2007 car and my mother loved this car and at the moment its our only means of transportation currently. I had a whole month off work back in November to take care of our mother. Any help would be greatly helpful. The amount in question is little over 2000 dollars I was informed my brother will be getting nov dec payments totaling over 2k would this be acceptable and allowed?

  2. #2
    Join Date
    Oct 2016
    Posts
    147

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    I'm confused by the situation.

    Are you the rep payee for your brother?

    Who would you buy the car from? Where is the money going?

    Is the car going to belong to your brother and be put in his name?

  3. #3
    Join Date
    Jun 2014
    Posts
    3,011

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    If your brother will not be driving the car, it is doubtful SSA will accept the purchase as legimate. Your brothers benfits are for him, not you. If you could not afford to take off work for a month to take care of your mother, you should not have done it.

    If you are your brothers Representative Payee, you will have to fill out a form every year showing how his money was spent.

  4. #4
    Join Date
    Dec 2016
    Posts
    10

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    Sorry for late response. I am his rep payee. I know you can use funds for downpayment on house/car and read that you can use small amount per month for car payment. The money is from the November and December payment or Dec/Jan payment that was being held until I got approved for his rep payee. The car is being brought from the bank that my mother had the loan through. The 2000 is to pay off the car note in full for him the car will be his when he turns of age was in moms last will and testimate.

    I was ok finance wise but what hurt was the burial and other items that had to be paid. They money I know is his period I'm not taking money for my gain. I already have all the budgets worked out for his share as directed by the SS Department.

  5. #5
    Join Date
    Jun 2014
    Posts
    3,011

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    If the car will be in his name, that is different that if the car will be in your name. He will also have to carry insurance on it. If the car will be in your name, it will not be his car and it will be viewed as a misuse of his funds. SSA does not care what your mothers Will says. They also do not care that you say you will put it in his name when he turns of age.

    SSA can make you pay back the funds and remove you as Rep Payee. If there is no one else that can be a Rep Payee, there are people that are paid a small monthly fee and SSA will appoint one of them.

    How old is your brother ?

  6. #6
    Join Date
    Dec 2016
    Posts
    10

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    Brother is 11 years old. I wasn't going to just up and do it why I'm poking around. I know the SS department is closed. I will probably call them and ask them the question see what they think. Wouldn't hurt to ask worse case they say no. I rather be safe then sorry.

  7. #7
    Join Date
    Jun 2014
    Posts
    3,011

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    Call your local SSA office. If you call the 800# you will more than likely get the wrong info. But, SSA will not go by wrong info you are told when you have to turn in your yearly report. With his young age, SSA will not view this as being something for him. They will view it as being something for you. Especially since you will not be available to take him all the places he will need to go until he turns 18.

  8. #8
    Join Date
    Oct 2006
    Posts
    15,218

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    Quote Quoting Mercy&Grace
    View Post
    Call your local SSA office. If you call the 800# you will more than likely get the wrong info. But, SSA will not go by wrong info you are told when you have to turn in your yearly report. With his young age, SSA will not view this as being something for him. They will view it as being something for you. Especially since you will not be available to take him all the places he will need to go until he turns 18.
    I am confused. It sounds like the child lives with the OP therefore why would the OP not be available to drive the child where the child needed to go? Who do you think would be driving the child places he needed to go?

  9. #9
    Join Date
    Jan 2006
    Posts
    38,442

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    Quote Quoting Coiled
    View Post
    Sorry for late response. I am his rep payee. I know you can use funds for downpayment on house/car and read that you can use small amount per month for car payment. The money is from the November and December payment or Dec/Jan payment that was being held until I got approved for his rep payee. The car is being brought from the bank that my mother had the loan through. The 2000 is to pay off the car note in full for him the car will be his when he turns of age was in moms last will and testimate.

    I was ok finance wise but what hurt was the burial and other items that had to be paid. They money I know is his period I'm not taking money for my gain. I already have all the budgets worked out for his share as directed by the SS Department.
    while I suspect there wasnt a lot of money in your mother's estate, you do need to realize your mother's estate is liable for the costs of her funeral and and outstanding debt of the estate, right?

    you also did not mention what state this is in. In some states a minor cannot own a car. It would have to be held in trust for him. That is more than a "I'll sign it over to him when he turns 18" kind of thing.

    Also, if there are any assets of the estate remaining after debts are paid, they quite likely could be used to pay the car loan. The state is critical so I say that in a general statement.

  10. #10
    Join Date
    Dec 2016
    Posts
    10

    Default Re: Can a Representative Payee Use a Beneficiary's Funds to Buy a Car

    To put it the money in the estate was basically 0 with negative balance for funeral expenses. I am the executor of the estate her attorney has been in this with me. She had what was known at a small estate affidavit on it. Illinois is the state.

    I have not brought up tot he attorney about buying the car with these funds. The Minor and my mother lived with me in my house I'm currently buying. House will be paid for in Feb or March of this year. I am currently to tight at the moment to shell out 2000 dollars on a car currently come later down in this year it will be fine. Currently just don't have the means. I will be getting guardianship of the minor was in the last will and testimate she had. Lawyer is in the progress of getting this started first court date is in Jan.

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