Our customer passed on 11/25/2011. The last SSA/SSI payment went into the account in 12/1/2011. The mother of the customer came in on 12/5/2011 and withdrew to purchase a check payable to the cremation and burial company for her son's burial. We received the notice of reclamation last week.
My first question is: Was the customer entitled to the payment in December? Don't they get paid in arrears?
My second question is: Since the money was used for his burial is the bank's liability limited?

1. The November entitlement, paid on December 1, was not earned because the beneficiary did not survive the month of November.

2. Regardless of the purpose of the withdrawal, the limited liability provisions in the reclamation rules make the bank liable for an amount equal to the amount of benefits received within 45 days of the date of death.

Review the Green Book pages on Reclamation.

Thanks, JOhn!