As representative payee, collect rent from son on SS, or sell half house ownership?

[renee_s]

I have been receiving social security survivor benefit for a couple of years, so has my son (5 yrs old). I am his representative payee. Recently, I used the life insurance proceeds of my husband to pay off the mortgage (they are just enough to cover the mortgage), since I don't want to pay heavy interests to the bank any more. Since the mortgage was paid off, there will be some money left ( a few thousands) for my son's benefit for this year, and perhaps from now on if we keep the current living standard.

However, after some research, I heard SSA will ask any unused child benefit to be returned when he turns 18. But I want to save the money for his future use, i.e., college education. As other moms may understand, I don't want his money. I just want to save the money for him so it will not be returned. I don't feel it is fair to be punished for being frugal. Some people suggest put "Zero" on the Representative Payee report anyway. But I am afraid of the investigation if there is one.

I wonder in my case, to "zero" his money on the accounting book: can I 1)collect a rent from my son so his SSA money will be used up, or 2)sell half of my house ownership to my son, so when he pay the loan back to me, I can use up the money.

I wonder whether either way works. Which one is better? If I choose the 2nd choice, should I go to the county office to change the house title?What is the name of your state (only U.S. law)?

 

[OHRoadwarrior]

We don't assist people with committing fraud. Especially when it involves our tax dollars.

 

[Onderzoek]

When he is age 18, SSA will ask you to return any conserved funds so those funds can be issued to your son. You will no longer have control over the money. And at 18, he can do what he pleases. My child surprised the heck out of me about his choices at age 18.

 

[LdiJ]

I have been receiving social security survivor benefit for a couple of years, so has my son (5 yrs old). I am his representative payee. Recently, I used the life insurance proceeds of my husband to pay off the mortgage (they are just enough to cover the mortgage), since I don't want to pay heavy interests to the bank any more. Since the mortgage was paid off, there will be some money left ( a few thousands) for my son's benefit for this year, and perhaps from now on if we keep the current living standard.

However, after some research, I heard SSA will ask any unused child benefit to be returned when he turns 18. But I want to save the money for his future use, i.e., college education. As other moms may understand, I don't want his money. I just want to save the money for him so it will not be returned. I don't feel it is fair to be punished for being frugal. Some people suggest put "Zero" on the Representative Payee report anyway. But I am afraid of the investigation if there is one.

I wonder in my case, to "zero" his money on the accounting book: can I 1)collect a rent from my son so his SSA money will be used up, or 2)sell half of my house ownership to my son, so when he pay the loan back to me, I can use up the money.

I wonder whether either way works. Which one is better? If I choose the 2nd choice, should I go to the county office to change the house title?What is the name of your state (only U.S. law)?

Use his SS money on his current needs, and use the money that you would have used on his current needs, to save for his future.

That isn't fraud.