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I searched all over on the net and cannot find an answer to a simple question: if an elderly person receiving SSI (Social Security Disability benefits) dies what happens to the cash balance remaining on their checking account for the previous months' payments?
I know there is a claw back for the payments received for the month of death. In other words, Social Security always pays for the previous month. So in May the payments are paid for April. And in June they will be for May.
So if a person dies in May, any cash transfer or check received in June has to be returned back to Social Security. That is clear.
But, what happens to the cash balance in the account from the April payment and any previous payments (the money the deceased just has not spent when he/she was still alive)? Can the beneficiary (child) just have that money for his/her use?
What happens to it? …..the same thing that happens to any other money in any other account that someone has. It goes to whoever else's name is on the account….or becomes part of the person's estate.
Once the SSI or Social Security benefits have been paid they are the property of the beneficiary, so the funds in the account are the same as any other property of the deceased person.
Once the SSI or Social Security benefits have been paid they are the property of the beneficiary, so the funds in the account are the same as any other property of the deceased person.
If additional benefits are paid after death they will claw them back, if they ever figure it out. Just because it's paid doesn't mean it's the bene's
If additional benefits are paid after death they will claw them back, if they ever figure it out. Just because it's paid doesn't mean it's the bene's
Yep, and they don't give any warning. They just go straight into the bank account and take it. Happened with both my brother-in-law and mother-in-law after they passed away.
A friend's mom died on the 16th of the month.
They did not get the check that was due on the coming third, for the previous month in which she died.
And I know of several cases in which that has happened.
If a person dies on the 10th, or 15th of April for example, I personally wouldn't expect the account would get the check that would have come on the 3rd of May. Now how LATE in the month you can die, and how quickly the DD can be stopped I don't know. It's all electronic. I'd guess that 10 days would be enough time for Soc Sec. to stop the direct deposit. Maybe they can even do it in a week's time. Again, given that it's electronic.
I marvel at how quickly they do stop the DD. It's like "Damn!" the person isn't even in the ground yet, and Soc Sec has stopped or pulled back the payment.
A friend's mom died on the 16th of the month.
They did not get the check that was due on the coming third, for the previous month in which she died.
And I know of several cases in which that has happened.
If a person dies on the 10th, or 15th of April for example, I personally wouldn't expect the account would get the check that would have come on the 3rd of May. Now how LATE in the month you can die, and how quickly the DD can be stopped I don't know. It's all electronic. I'd guess that 10 days would be enough time for Soc Sec. to stop the direct deposit.
I marvel at how quickly they do stop the DD. It's like "Damn!" the person isn't even in the ground yet, and Soc Sec has stopped or pulled back the payment.
I work in the banking industry and the deposits continue all the time. As another poster mentioned above and had the clawback happen to two people they knew
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