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One parent will be designated the "representative payee" for the child's benefits. Usually the parent who filed the retirement or disability claim will fill out a form accepting responsibility for handling the benefits, if that parent is considered competent to manage his or her own money and hasn't committed a felony in the past.

If the child receives a lump sum settlement for back pay, the representative payee is required to set up a separate savings account, showing the child as the owner, to protect the child's benefits.

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