The payee is the one that receives a payment.
Technically, a cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified transactional account held in the drawer's name with that institution. Both the drawer and payee may be natural persons or legal entities. If the cheque is crossed with the words 'Account Payee' or similar then the cheque can only be paid into the bank account of the person initially named as the payee, thus it cannot be endorsed to a different payee. However, the payee account should indicate that it is owned by the beneficiary, with the payee acting on behalf of the beneficiary. In the event of the death of the beneficiary, the payee would not have the right of ownership to any funds in the account. If a representative payee passes away, the funds in the account revert back to the SSA until a new payee is assigned. Opening a Payee Account. The SSA requires that any funds left over after the payee has provided for the beneficiary's basic needs be held in an interest-bearing account or savings bond for the future needs of the beneficiary. A payee account at a bank or credit union can be in the form of a savings or checking account. You should be able to open a payee account at most banks or credit unions; just let the associate know that you are a representative payee and need to open an account for a beneficiary. In the event of the death of the beneficiary, the payee would not have the right of ownership to any funds in the account. If a representative payee passes away, the funds in the account revert back to the SSA until a new payee is assigned. A representative payee is a person or an organization. We appoint a payee to receive the Social Security or SSI benefits for anyone who can’t manage or direct the management of his or her benefits. . A payee acts for the beneficiary. A payee is responsible for everything related to benefits that a capable beneficiary would do for himself or herself. We encourage payees to go beyond just managing finances and be actively involved in the beneficiary’s life. The payee is the one that receives a payment. On a check or money order, the payee is the person the check is made out to. This is the person who can cash the check, o … r deposit it into his account. On a promissory note he is the one who receives the money from the loan. 37 people found this useful. A payee that accepts a cheque will typically deposit it in an account at the payee's bank, and have the bank process the cheque. In some cases, the payee will take the cheque to a branch of the drawee bank, and cash the cheque there. If the cheque is crossed with the words 'Account Payee' or similar then the cheque can only be paid into the bank account of the person initially named as the payee, thus it cannot be endorsed to a different payee. Answer by Yarnlady. Confidence votes 2.9K. The payee is the one that receives a payment. On a check or money order, the payee is the person the check is made out to. This is the person who can cash the check, or deposit it into his account. On a promissory note he is the one who receives the money from the loan.  From Wikipedia, the free encyclopedia. A representative payee, or substitute payee, is a person who acts as the receiver of United States Social Security Disability or Supplemental Security Income for a person who is not fully capable of managing their own benefits, i.e. cannot be their own payee.  NOTE. Being an authorized representative, having power of attorney, or a joint bank account with the beneficiary is not the same as being a payee. These arrangements do not give legal authority to negotiate and manage a beneficiary's Social Security and/or SSI benefits. A payee acts for the beneficiary. A payee is responsible for everything related to benefits that a capable beneficiary would do for himself or herself. We encourage payees to go beyond just managing finances and be actively involved in the beneficiary’s life.
https://en.wikipedia.org/wiki/Cheque http://www.ehow.com/info_10056899_payee-account.html http://www.ehow.com/info_10056899_payee-account.html http://www.ssa.gov/payee/faqrep.htm http://www.answers.com/Q/What_is_account_payee_check https://en.wikipedia.org/wiki/Cheque http://www.answers.com/Q/What_is_a_payee https://en.wikipedia.org/wiki/Representative_payee http://www.ssa.gov/payee/faqrep.htm
what is payee account