Persistent mismanagement of the assistance payment to the detriment of the individual or of the dependent children is an indication that a protective payee may need to be considered.
Evidence of mismanagement includes the following:
• Recurring inability to plan for and meet a month’s needs;
• Recurring failure to meet obligations for shelter and food;
• Repeated evictions;
• Repeated incurrence of debts with attachments against non-assistance income; or
• Recurring incidence of children not being fed or clothed, with their development threatened through lack of proper care.
The following are not valid reasons for protective payments:
• Lack of funds to meet emergencies such as a sudden decrease in income or a sudden illness;
• Expenses for necessary bills exceed the individual’s grant and other income; or
• The individual is withholding payment as a reasonable exercise of consumer rights when there is a legitimate dispute about an agreement.
Physical or mental incapacity is not a valid reason for assigning a protective payee.
At least every 6 months, determine the continued need for a protective payee and whether the protective payee is meeting the responsibilities.
Limit protective payments for mismanagement of funds to 2 years. Terminate protective payments when the earliest of the following situations occurs:
• The individual is able to manage funds;
• A guardian or other legal representation is obtained; or
• The two-year period has expired.