|
|
|
Customer Deceased, Can We Deposit to the Account?
by Ken Golliher and John Burnett, BOL Gurus
Guru BIOS
Question: Is it appropriate to deposit checks made payable to a decedent into his account if the checks predate the date of death?
Answer by Ken Golliher: No. Checks payable to a decedent should be delivered to any court-appointed personal representative. When properly endorsed by the personal representative, showing his official capacity, they should be deposited into the estate account.
Answer by John Burnett: Checks drawn on the U.S. Treasury that represent payments the rights to which terminate with the death of the payee (annuities, retirement payments, Social Security payments, etc.), may not be negotiated after the death of the payee, even by the representative of the estate. They should be returned to the agency that authorized the payment (for example, the Social Security Administration) for determination as to whether, under applicable law, payment is due and to whom it can be made. (31 CFR 240.15)
Answer by Ken Golliher: John's correct. Even though you said the check predated the decedent's date of death, there are contingencies that might affect certain checks. For example:
Source: Social Security Online
Questions: Checks and Payments
Q: My mother, a widow, died in late April. Social Security tells me that I must return her April benefit (paid in May) even though she was alive most of the month. Why is this?
A: Social Security benefits are not prorated. To be entitled to a Social Security benefit check for a given month, the person must be alive the entire month. No benefit is payable for the month of death. You can return the check at your local Social Security office. To locate your local office, visit http://www.ssa.gov/locator/
Q: My mother died February 25. Is her estate entitled to the check which arrived March 3, which is for the month of February? If not, why?
A: No. Social Security benefits are not payable for the month in which a beneficiary dies. This applies whether the person dies on the first or the last day of the month. This provision has been in the law since 1939 and can be changed only by an amendment to the Social Security Act.
The legislative history of this provision does not show why benefits are not payable for the month of death. However, the provision complements the provision of the law that allows us to pay survivor's benefits for the entire month of death.
Q: If a person receives a Social Security check and then dies before cashing it, must the check be returned?
A: Social Security benefits are not paid for the month in which an individual dies. Example: An individual receives a Social Security check in June for the month of May, and dies after the receipt of that payment. The individual would be entitled to the check received in June (May's payment) because the individual lived throughout the month of May. However, the check issued in July (for the month of June) would have to be returned to Social Security because the individual did not live throughout the month of June.
First published on BankersOnline.com 6/20/05
Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking
BOL Archives Privacy Policy Important Disclaimer Recommend This Site ! Contact Us
BankersOnline is a free service made possible by the generous support of our
advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all
banking professionals. Support our advertisers and sponsors by clicking
through to learn more about their products and services.
|
|
|
Print Friendly!
Email This Article!
Discuss NOW!