SSR 62-46. VALIDITY OF APPLICATION -- SELECTION OF PERSON TO RECEIVE PAYMENTS

In March 1961, a worker, W, age 56, was found by a court to be

incompetent and was committed to a State mental hospital, suffering from a

mental condition which had made him unable to work since November 1958. In

September 1961, his sister, who had been appointed his legal guardian,

executed and filed an application on his behalf for a period of disability

under section 216(i) of the Act, and for disability insurance benefits

under section 223. A month later W was released from the hospital on a

"trial visit" basis, and applied to have benefits paid to himself.

Evidence obtained from the hospital and other sources established that W

was still under a disability when released, and had been under such

disability since November 1958, and that he had disability insured

status.

It was subsequently determined that W had been mentally incompetent

throughout the period of his confinement, being unable by reason of

insanity to manage his business affairs. the judicial adjudication of

legal incompetency was still in full force and effect. However, though W

was still unable to engage in any substantial gainful activity, at the

time he requested payments be made to him he was looking after some of

this personal affairs and was capable of managing any benefits which might

be payable. In fact, the psychiatrist familiar with his condition

recommended the benefit payments be made to W and stated that the

responsibility of handling his funds would have therapeutic value and

would help in his rehabilitation.

at the

time he requested payments be made to him he was looking after some of

this personal affairs and was capable of managing any benefits which might

be payable. In fact, the psychiatrist familiar with his condition

recommended the benefit payments be made to W and stated that the

responsibility of handling his funds would have therapeutic value and

would help in his rehabilitation.

Sections 216(i) and 223 of the Act provide that a disabled worker must

file application in order to establish a period of disability and/or

become entitled to disability insurance benefits. Under section 223(b), by

filing an application in one month the worker can be entitled to such

benefits for each of the preceding 12 months, if (as in this case) all

other entitlement requirements were met in such months and the worker is

still under a disability at the time application is filed.

The first issue presented in this case is whether the worker has filed

application, as required by the law and regulations, through the

application filed on his behalf by his legal guardian in September 1961.

if that application establishes his entitlement at all, it will establish

entitlement to benefits beginning September 1960. If the application was

ineffective, W cannot be entitled to a benefit for September 1960.

Regulations No. 4, § 404.603 provides:

* * * * * *

Since W was mentally incompetent when the application in question was

filed, under the regulations quoted above his legal guardian could

properly execute and file an application on his behalf, and the

application when filed established his entitlement to benefits beginning

September 1960.

The second issue presented by this case is whether W's benefits should be

paid to him, or to his sister as his legal guardian, or to some other

person found to be suitable and willing to carry out the responsibility of

managing W's benefits in his best interest.

an application on his behalf, and the

application when filed established his entitlement to benefits beginning

September 1960.

The second issue presented by this case is whether W's benefits should be

paid to him, or to his sister as his legal guardian, or to some other

person found to be suitable and willing to carry out the responsibility of

managing W's benefits in his best interest.

Under this section (and § 404.1601, Regulations No. 4), the

Administration may make a payment directly to W even though he is legally

incompetent (i.e., a legal guardian has been appointed for him) if it

appears that such direct payment would be in his best interest.

Consideration of all the facts and the current professional evaluation

show that he was capable of managing his own funds, and that such

responsibility would have therapeutic value and would help in his

rehabilitation and serve his interest.

It was therefore held that W is entitled to disability insurance benefits

effective September 1960 on the basis of the application executed and

filed on his behalf by his legal guardian. Moreover, the benefits will be

paid directly to W, rather than to his legal guardian.