Social Security Deposit After Death

W

wcan

Member
Jurisdiction
Maryland
Hi,

Hope all is well. My Mom received a social security direct deposit 5 days after she passed in 2023. By the time I was able to close the account, with all the autopay accounts she had setup, there was around $800 left. Once I closed the account, I was expecting a check made out to her estate for the remaining balance. Citibank is now holding this money hostage stating that since she received a SSA deposit after passing, they are obligated to return these funds. The letter also stated that there are insufficient funds for the amount owed.

They are now telling me that if I paid the SSA directly, I will need to show proof before they cut a check to the estate.

1- she was entitled to this money. This was her benefit payment for August. SSA pays in arrears, meaning any check received is for the priors month benefit.
2- I have recieved no notification from SSA in the last year that this money needs to be returned. When I called they even told me since she was alive for the full 31 days in August, she was entitled to this deposit.

I can't seem to get this through Citibank's skull. I have asked for proof of any correspondence they've had with SSA and evidence of them returning the money to SSA.

I'm more confused as to where the money is. Citibank is waiting for me to show them proof I returned money to SSA before cutting a check? So that means they are holding the remaining balance hostage....

I'm not sure what to do now. It's just back and forth. I'm thinking about pursuing legal action. This is just one part of the story. This has been going on for 6 months with minimum communication and 10 different answers as to what happened to her money.
 
wcan said:
'm more confused as to where the money is. Citibank is waiting for me to show them proof I returned money to SSA before cutting a check? So that means they are holding the remaining balance hostage....
Click to expand...

I went through this when my Mom died.

Citibank is correct.

SSA has no obligation to notify you of anything. And they don't. They automatically take back the money. In your case they can't do that since you closed the account.

wcan said:
I'm not sure what to do now. It's just back and forth. I'm thinking about pursuing legal action. This is just one part of the story. This has been going on for 6 months with minimum communication and 10 different answers as to what happened to her money.
Click to expand...

You aren't going to win this.

Go to the local SS office (if there is one) pay it back, get a receipt, and provide the receipt to Citibank.

It's that simple.

By the way, the estate still owes the money to SSA. If you don't pay it, the SSA can come back on you to get it.
 
wcan said:
Hi,

Hope all is well. My Mom received a social security direct deposit 5 days after she passed in 2023. By the time I was able to close the account, with all the autopay accounts she had setup, there was around $800 left. Once I closed the account, I was expecting a check made out to her estate for the remaining balance. Citibank is now holding this money hostage stating that since she received a SSA deposit after passing, they are obligated to return these funds. The letter also stated that there are insufficient funds for the amount owed.

They are now telling me that if I paid the SSA directly, I will need to show proof before they cut a check to the estate.

1- she was entitled to this money. This was her benefit payment for August. SSA pays in arrears, meaning any check received is for the priors month benefit.
2- I have recieved no notification from SSA in the last year that this money needs to be returned. When I called they even told me since she was alive for the full 31 days in August, she was entitled to this deposit.

I can't seem to get this through Citibank's skull. I have asked for proof of any correspondence they've had with SSA and evidence of them returning the money to SSA.

I'm more confused as to where the money is. Citibank is waiting for me to show them proof I returned money to SSA before cutting a check? So that means they are holding the remaining balance hostage....

I'm not sure what to do now. It's just back and forth. I'm thinking about pursuing legal action. This is just one part of the story. This has been going on for 6 months with minimum communication and 10 different answers as to what happened to her money.
Click to expand...


What date did your mother pass?
What date did the SSA payment post?
 
adjusterjack said:
I went through this when my Mom died.

Citibank is correct.

SSA has no obligation to notify you of anything. And they don't. They automatically take back the money. In your case they can't do that since you closed the account.



You aren't going to win this.

Go to the local SS office (if there is one) pay it back, get a receipt, and provide the receipt to Citibank.

It's that simple.

By the way, the estate still owes the money to SSA. If you don't pay it, the SSA can come back on you to get it.
Click to expand...
SSA pays in arrears, which means that a payment received in September would be the August payment. If mom died in September, then she (her estate) is entitled to the SSA payment received in September.
 
wcan said:
I'm not sure what to do now. It's just back and forth
Click to expand...

You NEED NOT address the Social Insecurity payment.

Why?

You're a close relative of the dearly departed.
However, she wasn't your dependent, nor were you hers.

As far as her estate is concerned, her debts expired upon her passing.

May your beloved mother rest for all eternity in heavenly peace.

That said, you have no legal duty to correspond with SSA, or anyone else.

Bottom line, be careful if you CHOOSE to become VOLUNTARILY ENTANGLED in her finances, which don't survive her death.

Her debtors might choose to pursue their claims, but AGAIN, you have no legal duty to attend to any business, but yours!!!!

Unless you make that choice, I suggest you grieve mother's passing, and mourn her memory until you're comfortable with her eternal departure.
 
army judge said:
You NEED NOT address the Social Insecurity payment.

Why?

You're a close relative of the dearly departed.
However, she wasn't your dependent, nor were you hers.

As far as her estate is concerned, her debts expired upon her passing.

May your beloved mother rest for all eternity in heavenly peace.

That said, you have no legal duty to correspond with SSA, or anyone else.

Bottom line, be careful if you CHOOSE to become VOLUNTARILY ENTANGLED in her finances, which don't survive her death.

Her debtors might choose to pursue their claims, but AGAIN, you have no legal duty to attend to any business, but yours!!!!

Unless you make that choice, I suggest you grieve mother's passing, and mourn her memory until you're comfortable with her eternal departure.
Click to expand...
I am operating under the assumption (yes...I know) that the OP is the personal representative for mom's estate. As such, there is in fact an obligation to appropriately administer the estate.
 
wcan said:
1- she was entitled to this money. This was her benefit payment for August. SSA pays in arrears, meaning any check received is for the priors month benefit.
2- I have recieved no notification from SSA in the last year that this money needs to be returned. When I called they even told me since she was alive for the full 31 days in August, she was entitled to this deposit.
Click to expand...

Apologies. I think I overlooked that.

So, the people at Citibank are ignorant aholes.

See if you can get something in writing from the local SSA office that the money does not have to be paid back.

If you can't get that I suggest you email an appropriate corporate executive:

www.elliott.org

Citigroup Customer Service Contacts

Contact Citigroup customer service for your customer service needs. Reach out via phone, email, or social media.
www.elliott.org www.elliott.org
 
So...this is a dispute over $800? And it's been more than a year since date of death?

If both of those things are true, you either file a small claims action or abandon the $800.
 
Zigner said:
I am operating under the assumption (yes...I know) that the OP is the personal representative for mom's estate. As such, there is in fact an obligation to appropriately administer the estate.
Click to expand...

I made no comment regarding the estate or legal matters of the dearly departed. Nor will I now make any comment regarding the estate.

However, I did suggest that one isn't involved in the matters of a deceased, unless one wishes to ensnare herself/himself/itself in such an entanglement.
 
Thank you all for the feedback. To answer some of your questions:

1- my dad is the estate representative.

2- date of moms death was September
22,2023. Direct deposit into her Citibank account was September 27,2023. She is entitled to this money because it was for August.

3- she passed so suddenly that we were not aware of the probate process. My dad did not get the letter of administration until February 2024. By the time we were able to go to Citibank to close her account, her $3100 balance went to $811 because of the auto pay accounts she had set up.

4- her Citibank account was closed at the end of February 2024. Since then we have heard nothing regarding the $811 balance and have been going back-and-forth getting multiple different explanations as to what happened to the money. It has been all over the place and a complete nightmare.

5- I will not abandon the $811. Like I said my mom was entitled to this money. I'm not gonna let some crappy bank keep it hostage.

6- if they did indeed return the money to the Social Security ministration then I will file a form 1724 to get it sent to my dad. The problem is there is no record of them ever returning this money because I have already checked with the Social Security administration someone at Citibank does not know what they're doing and continues to give us the runaround, but don't worry because small claims court is next.

It clearly states on the Social Security administrations website that the deceased is entitled to their money as long as they lived the full month for which the benefit was paid. Again, my mom was alive all 31 days in August….that money is hers.

Thank you, adjusterJack…. The branch manager has been completely useless, and I will not go above her to get this resolved.
 
So here's what I think happened- I got this letter from Citibank and I quote:

"We confirmed that there was a direct deposit made by the government to the account after our customers date of death. Citibank is obligated ot return those funds. The account has insufficient funds for the amount owed. If you have already paid SSA directly, please provide proof of payment. Receipt of this documentation will allow us to issue a check to the estate of XXXXX".

I think SSA tried to recover this money and Citibank told them there is insufficient funds to do so. As I stated earlier in the post, the account went from $3,000 to $811 because of the automatic payments she had setup. When SSA probably tried to recover the money, it "bounced".

So now Citibank is saying pay the SSA back the amount, we will release the $811 than go back to SSA to recover the rest.

My issue here is why Citibank has not returned the remaining balance? Just send back what is left in the account. Just because there are insufficient funds to return the entire balance doesn't mean Citibank can just keep the remaining balance.

Waiting for the SSA to return my call - sigh
 
wcan said:
So here's what I think happened- I got this letter from Citibank and I quote:

"We confirmed that there was a direct deposit made by the government to the account after our customers date of death. Citibank is obligated ot return those funds. The account has insufficient funds for the amount owed. If you have already paid SSA directly, please provide proof of payment. Receipt of this documentation will allow us to issue a check to the estate of XXXXX".

I think SSA tried to recover this money and Citibank told them there is insufficient funds to do so. As I stated earlier in the post, the account went from $3,000 to $811 because of the automatic payments she had setup. When SSA probably tried to recover the money, it "bounced".

So now Citibank is saying pay the SSA back the amount, we will release the $811 than go back to SSA to recover the rest.

My issue here is why Citibank has not returned the remaining balance? Just send back what is left in the account. Just because there are insufficient funds to return the entire balance doesn't mean Citibank can just keep the remaining balance.

Waiting for the SSA to return my call - sigh
Click to expand...
Citibank can't pick and choose like that.
 
Zigner said:
Citibank can't pick and choose like that.
Click to expand...
I don't know what my next move should be. SSA has still not returned my call. I may have to make a visit to the office tomorrow.

I understand that Citibank has an obligation to return the money but they can't hold on to $800 until I pay back the SSA because of insufficient funds. That's now how this works (at least I don't think it does)

I also found this online where this person said the SSA automatically takes back the money. I think this is what happened and Citibank couldn't do it because there was not enough money in the account to do so. Again, they can't hold $800 hostage.

 
I went to the SSA office and got a letter that states she does not have an overpayment on her social security record. I mailed it in to Citbank's back office and waiting for a reply.

SSA said they can't even accept payment from me because the system doesn't show that she owes anything.

Stupid Citibank. Making life difficult. Hopefully this resolves the issue. if not, small claims court it is.
 

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