I realize you have a question about social security. My goal is to help you better understand your options.

Hello Carol. Thank you for asking your quesiton. The answer to the question depends on whether you are the representative payee or if your mother's check is received directly in her own name.

You are your mother's representative payee, if I understand correctly. That means the checks come to you for the benefit of your mother. Therefore, there are guidelines as to how the bank account must be titled.

Here's the wording directly from the Social Security Web site:

To protect the beneficiary’s funds, the checking or savings accounts title must reflect the beneficiary’s ownership of the funds and your relationship as a fiduciary (financial agent). Neither the representative payee nor any other third party can have ownership interest in the account. The beneficiary must never have direct access to the account. Any account title (under state law) that shows beneficiary ownership of the account with you as fiduciary is acceptable. Do not use joint accounts. Here are two ways we recommend to title the accounts:

• “(Beneficiary’s name) by (your name),
  representative payee.”
• “(Your name), representative payee for (beneficiary’s name).”

So, Social Security is correct; if you are the representative payee your sister can not be on the bank account. Furthermore, your mom can't have direct access to the funds, either.

Funds not used for your mom's day-to-day obligations should be placed in a savings account for her benefit. I would suggest putting the savings account in her name, but have you and your sister as POD beneficiaries, that way you don't have direct access to the funds (social security doesn't like that) and then if she passes away, the account will by-pass probate.

However, if your mother receives the check directly in her name, then it doesn't matter if all three of you are on the account, as that's your mother's choice. Social security is only really concerned when someone is getting benefits as a representative payee.

I hope this clarifies the issue for you.

Here's the link to the social security web site that I received the information on the representative payee account for.

If this helped, then rate my service as "excellent" so that I can be compensated for assisting you today. Otherwise, click "reply" or "continue conversation" for continued dialog with me.

VERY IMPORTANT - IF you are having DIFFICULTY RATING, please let me know IMMEDIATELY. If you don't rate my response, I don't get paid even though your deposit is retained by the site. Thanks for your cooperation in this matter.