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Hello there --
Because the money was and is being paid to your daughter for the time period BEFORE she was approved by SSI for benefits, she is entitled to keep any money sent to her as part of the back pay amounts and that money can be used to support her daughter. You are correct that your daughter's monthly benefits will stop while she is in prison -- but the money for back pay that she has received and is to receive in the installments is still legally hers to keep because it covers the time period when she was not in prison.
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