A customer of ours died in October 2021. We did not become aware of this until December. The customer and her daughter had a joint checking account. The mother's SS was ACH deposited monthly. November's SS was deposited and the daughter transferred the funds to her savings account. The December's deposit was returned. Social security has tried numerous times to recoup the funds from the daughter and she is not complying, thinking that because the December deposit was returned that she doesn't have to return the November deposit. Monday, Social Security ACH the funds from the bank's account. Question is does the bank have right of setoff from the daughter's savings account that is only in her name that she transferred the November deposit to.

Unless there is some business type account that is being left out of your description, I don't see how the bank would be unable to use right of setoff in this situation. I am interested to see what others say about it.

That is a good question for your legal counsel.