Bank won't pay gov't back social security

[cece]

I'm from North Carolina. My mother-in-law passed away last month. We are trying to get her bank to send social security back all money that is left in her account. She passed away after her ss check was direct deposited into her account for the month. As far as we know, nobody else is listed on her account. The bank keeps saying we need to go through probate. I thought the bank was obligated to send the money back to social security. What should we do? Also, I don't believe there is enough money in her account to pay back all of the money to social security. is my husband obligated to pay back the rest? She was living with us, but we do not have power of attorney. Thank you.

 

[advisor10]

JUNE 6, 2001

DEAR CECE:

Did your mother-in-law have a will, and how much money is left in the account?

If she had a will, then it is the executor who should be responsible for claiming these funds. If she did not have a will, then some relative in her family should file an application with the probate court at the county courthouse (of the city where she died) to be "personal administrator" of her estate (to take care of paying her bills, funeral expenses, taxes--if any, etc.), claiming her other assets. If she does not have much of an estate besides what is left in the checking account, then your only choice is to leave the money unclaimed and it will be turned in within the next 5 years to the New Jersey Unclaimed Funds department, where her closest relative could claim this money by submitting a copy of her death certificate.

The bank was correct in saying that a probate action must take place, since they are only authorized to turn this money over to someone who is legally authorized by the court to claim this money. When the application for personal administrator is submitted, the court will issue official papers to the administrator that the administrator can then send a copy of this paper to the bank and the bank will release the funds.

Actually, you don't have to worry about sending any of this money back to the Social Security Administration, since the money does legally belong to your mother-in-law or her estate, since she received it BEFORE she died, she can spend it any way she wants. It is only payments received AFTER she died that would have to be returned to the agency, and I assume that someone in the family (or maybe even the funeral home) has already reported her death to the Social Security Administration so that future checks will not be issued.

Find out from the county courthouse what the filing fees are for probate before you decide whether or not you want to file the application to be personal administrator.

SINCERELY,

[email protected]

 

[Grammari]

I believe you have been given some mis-information. I know that the bank returned two checks deposited into my aunts account.....she passed 11/28/00 and both the NOVEMBER and DECEMBER checks had to be returned.

This information was just copied from the ssa website under the question: HOW DO I REPORT THE DEATH OF A BENEFICIARY?

A family member or other person responsible for the beneficiary's affairs should do the following:

- Promptly notify Social Security of the beneficiary's death by calling SSA toll-free at 1-800-772-1213.

- If monthly benefits were being paid via direct deposit, notify the bank or other financial institution of the beneficiary's death. Request that any funds received for the month of death and later be returned to Social Security as soon as possible.

- If benefits were being paid by check, DO NOT CASH any checks received for the month in which the beneficiary died
or thereafter. Return the checks to Social Security as soon as possible. To find your local Social Security office, see
http://www.ssa.gov/locator/

 

[shawneekat]

Upon my father's death in nov 2000, I personally called Social Security and was told by them that if it was a SS retirement check then it was due him because retirement was paid after the actual month. Unlike SSI that is paid for the month coming. Therefore if SS retirement then the money would not be sent back, it would go to the estate of the deceased. Easily found out about. Call Social Security.