GN 00502.159 (Additional Considerations When Foster Care Agency is Involved) provides, among other things:

Cases involving foster care are among the most sensitive SSA encounters. It is essential that SSA do all it can to protect the rights of children who may not be able to rely on their parents to do so.
It is extremely important that SSA follow all legal requirements, including conducting a complete investigation of the individual or organizational representative payee applicant, using the payee preference list appropriately to identify when other payee leads should be developed and providing due process to the child’s parent and/or legal guardian.
The primary concern must be that the person, agency or organization selected as payee will best serve the interest of the child.
When selecting a payee for a child in foster care, SSA is to exercise caution and follow proper procedures to ensure they appoint the best payee available and provide appropriate due process. Do not routinely appoint the foster care agency as payee for a child in foster care. Gather all pertinent information and make a thoughtful and careful choice and decide each case on its own merit.
SSA is to ensure that the foster care agency answers all pertinent questions during the payee application process. Make sure they tell you whether the child has a living parent or other interested family member. If they answer “no” (or they do not know) to the parent question, review all court documents obtained, the MBR/SSR and/or case file to determine if we have any record of a parent or other family member.
When interviewing the representative of the foster care agency, take the time to fully discuss their payee responsibilities, including:
- using and saving the money for the child’s benefit;
- filing annual accounting reports;
- reporting changes (including adoptions and custody changes) which affect the beneficiaries’ eligibility and benefit amount;
- record keeping; and
- returning conserved funds.