How should I invest the railroad retirement benefits I am receiving on behalf of another person?
You should invest the amount of the railroad retirement benefits that will not be needed by the beneficiary in the near future as a trustee would invest money from an estate. Preferred investments are U.S. savings Bonds, but you may also, for example, deposit money in an insured account in a bank, trust company, or savings and loan association where it can draw interest. You should not keep money in your home where it may be lost or stolen. Neither should you mingle it with your own or other funds. U.S. Savings Bonds bought for a minor beneficiary should be registered as follows:
U.S. Savings Bonds bought for an incapacitated adult beneficiary should be registered as follows:
Because the money you receive as a representative payee belongs to another person, bank accounts and other accounts should be registered in a way that shows the money in trust for the true owner. For example: