Skip to content

SS Direct Deposit into Trust Account

Answered by: 

I am reviewing a trust where two individuals are the trustees of a Revocable Trust for their mother. The two individuals, trustees, want to add their mother and a sister as agents. The trust agreement allows for the appointment of agents. They want thier mother's social security check to go into this account that is using a #38 TIN that is not the mother's social security number. Will there be a problem with a direct deposit of social security going into a trust account where the TIN on the account is not the social security number of the person receiving the social security benefit?

I am assuming that your reference to a "38" number is to an EIN. The trust is one person. The mother is another person. From the government ACH rules:

31 CFR 210.5(a) Notwithstanding ACH Rules 2.1.2, 4.1.3, and Appendix Two, section 2.2 (listing general ledger and loan accounts as permissible transaction codes), an ACH credit entry representing a Federal payment other than a vendor payment shall be deposited into a deposit account at a financial institution. For all payments other than vendor payments, the account at the financial institution shall be in the name of the recipient, except as provided in paragraph (b) of this section.

My read is that the account is not in the name of the recipient and this cannot be done. Moreover, unless the mother is still calling the shots, their control over the SSA payment is based on an appointment as a representative payee. A representative payee cannot turn control of the funds over to a third party; i.e., the trustee.

First published on 4/05/10

First published on 04/05/2010

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics