A representative payee may be established for a TANF unit for any of a number of reasons.
If a child is eligible for TANF, but the caretaker relative they live with is not in the TANF unit, designate the caretaker relative as representative payee (RPY). This happens when the caretaker is a parent who is not eligible for TANF, like an SSI
recipient or an ineligible noncitizen. The parent is still a member of the TANF filing unit (see PM 04-01-02), even though they are not in the benefit unit.
It also happens when the caretaker is a relative other than a parent, who is not part of the TANF filing unit. Examples are a grandparent with income and an aunt who is in another TANF case with her own child(ren).