Social Security demanding repayment after mother's death but funds are frozen in bank account - caught in bureaucratic loop

This is unfortunately common after a death when SSA and financial institutions don't communicate well. You need to get a death certificate to the local SSA office AND get a letter from them acknowledging receipt. Then take that to the bank's legal department (not just a branch manager) with the death certificate and explain the situation. Also critical: document EVERYTHING. Names, employee IDs, dates and times of calls. When SSA sends demand letters, respond in writing (certified mail) explaining the situation and referencing your prior contacts.

Same thng hapened to me with my father last year!! The bank froze evrything and SS kept sending me letters even tho THEY were blocking the account!!! I had to call SS like 20 times before I got someone who understood the problem. Ask for a supervisor and explain its THEIR HOLD on the account thats causing this!!!!

Contact your congressional representative's constituent services office immediately. This is EXACTLY the kind of bureaucratic mess they can help untangle. I worked for a rep for years, and we resolved dozens of similar SSA-related problems. They have direct lines to specialist liaisons at SSA who can cut through red tape. Don't wait - these offices exist specifically to help with federal agency issues.

I had a similar nightmare situation when my aunt died. After weeks of getting nowhere with SSA phone calls, I used a service called Claimyr (claimyr.com) to get through to an actual SSA agent quickly instead of waiting on hold for hours. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Once I finally got to a knowledgeable agent, they told me I needed to request something called an "Administrative Unfreezing" which is specifically for situations where SSA's own hold is preventing the return of funds. The form has to be processed by the Payment Center, not the local office. The regular phone agents often don't know about this procedure.

This happens ALL THE TIME and it makes me FURIOUS!!! SSA does this automatically and then doesn't train their staff how to fix it! Their systems are from the STONE AGE and don't talk to each other! One department puts the freeze, another sends demand letters, and nobody can override the system. It's a NIGHTMARE and they don't care how much stress they cause grieving families!!!!

My condolences on losing your mother. Just wondering - have you tried working with the executor of the estate instead of using your expired POA? Sometimes the legal authority of an executor can push through these situations.

Update based on what others have shared: You need to specifically request the "Administrative Unfreezing" procedure AND work through your congressional representative simultaneously. The two key facts everyone needs to understand: 1. This is a known systems issue at SSA where the Treasury Reclamation process puts an electronic hold on the account while simultaneously demanding the funds back 2. Only the Payment Center (not field offices) can process the administrative unfreezing I'd recommend documenting this whole situation in a one-page summary with a timeline that you can share with your congressional office and any SSA manager you speak with. This will save you from having to re-explain everything each time.

my mother in law died last year and we just ignored the letters from SSA for a while and eventually they stopped coming? maybe just wait it out? the bank eventually unfroze everything after 6 months without us doing anything special

UPDATE: I finally got some traction! After mentioning the "Administrative Unfreezing" procedure that someone suggested here, the SSA supervisor knew exactly what I was talking about. She's submitted the request to the Payment Center and said it should be processed within 10 business days. She also put a temporary hold on the collection notices while this is being resolved. My state senator's office also called and said they've assigned a caseworker who will follow up next week to make sure everything is progressing. Thank you all for your suggestions and support. This has been such a stressful situation on top of grieving my mother.

I'm so sorry for your loss and the additional stress this bureaucratic nightmare has caused during an already difficult time. It's encouraging to see you're making progress with the Administrative Unfreezing procedure and congressional involvement! For anyone else who might face this situation in the future, it seems like the key lessons are: 1. Know the specific terminology ("Administrative Unfreezing") when speaking with SSA 2. Request to speak with supervisors who are familiar with these complex cases 3. Don't hesitate to contact your congressional representative's constituent services office early in the process 4. Document everything with names, dates, and reference numbers 5. Work with the bank's legal department rather than just branch managers Your experience shows how important it is for this community to share specific procedural knowledge that can help families navigate these systems during already stressful times. Thank you for taking the time to update us on your progress - it will definitely help others who find themselves in similar situations.

I'm so glad to hear you're finally getting some resolution! This thread has been incredibly educational - I had no idea about the Administrative Unfreezing procedure or how congressional offices could help with these specific SSA issues. As someone who will likely be dealing with similar situations for elderly family members in the coming years, I'm saving all this information. It's shocking that SSA's own systems create these catch-22 situations, but knowing the right terminology and escalation paths clearly makes all the difference. Thank you for sharing your experience and keeping us updated. Wishing you a smooth final resolution so you can focus on grieving and healing without this additional bureaucratic stress.

This thread is such a valuable resource for anyone dealing with post-death SSA complications. I'm currently helping my elderly neighbor organize her affairs and had no idea these kinds of bureaucratic tangles could happen. The specific advice about requesting "Administrative Unfreezing" from the Payment Center (not local offices) is gold - I'm definitely saving this information. @TommyKapitz, I'm so sorry for the loss of your mother and the additional stress this situation has caused. It's terrible that families have to become experts in government procedures during such difficult times. Your persistence in documenting and sharing this experience will undoubtedly help others avoid some of the confusion you've faced. The fact that congressional offices can actually cut through this red tape is something more people need to know. It sounds like the combination of knowing the right terminology and having official advocacy made all the difference in your case.