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#2183378 - 06/27/18 08:13 PM Deceased Person Government Benefits
AW27 Offline
New Poster
Joined: Jan 2017
Posts: 22
If next of kin notifies our bank that one of our customers has died and that person receives government benefits, do we immediately put a stop pay on the benefits coming in as of the date we were notified?
Or do we allow the benefits to keep hitting the customers account until the government entity notifies us about reclamation?

If anyone has any links to the most updated rules/laws regarding this issue I would appreciate them!
Thank you.

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Deposits and Payments
#2183405 - 06/28/18 03:22 AM Re: Deceased Person Government Benefits AW27
JacF Offline

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Joined: Nov 2001
Posts: 6,719
PA
Was this strictly a verbal notification, or was it accompanied by official documentation (death certificate)?

If you have a death certificate, then you have all of the confirmation that you need, and should reject any subsequent ACH deposits in the decedent's name.

If you only have a verbal notification, I don't recommend rejecting the ACH. But to protect the bank, you could freeze/lock the account, accept the deposit and wait for either:
1) the death certificate, which will then prompt you to return the ACH deposit
2) the reclamation request
3) the depositor to visit the branch and let you know this has all been a terrible mistake (probably not likely). smile

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