Social Security payment reclamation after death - bank won't release funds to estate executor

Been there. SSA's death benefit reclamation process is a NIGHTMARE and can take up to 6 months sometimes. The bank is right that SSA will take back that payment - anyone who dies before the full month isn't eligible for that month's payment. But the bank shouldn't freeze the ENTIRE account, just enough to cover the SS payment. Have you shown them the Letters Testamentary proving you're the executor?

To properly handle this situation: 1. The bank is following standard procedure. When a beneficiary dies, SSA will reclaim the payment for the month of death unless the person died on the very last day of the month. 2. As executor, you should file Form SSA-1724 ("Claim for Amounts Due in the Case of a Deceased Beneficiary") with your local Social Security office. Include certified copies of the death certificate and your executor appointment. 3. You can also submit an SSA-1699 ("Request for Death Information") which may expedite the reclamation process. 4. The bank should only be holding the exact amount of the SS payment, not the entire account. Request to speak with the bank's estate department manager and reference Regulation E of the Electronic Fund Transfer Act. 5. For the veteran's marker, you may qualify for reimbursement through the VA using Form 40-1330.

i went thru similar when my mom passed. the bank is being ridiculous!! they only need to hold the exact ss amount. call and ask for the branch manager not just a teller. if that doesnt work contact ur states banking authority and file complaint. they usually respond FAST when formal complaints come in lol

Sorry about your father's passing. When my husband died, I was so frustrated trying to reach someone at Social Security to handle the death reporting and payment issues. I finally found a service called Claimyr (claimyr.com) that got me connected to a real SSA agent in under 10 minutes instead of waiting for hours. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU Once I spoke with an actual agent, they explained exactly which forms were needed and even processed some things right over the phone. Saved me weeks of back and forth with paperwork.

When my father died in 2023, we had the exact same issue. The bank is partially right - SS will take back the payment, but they're wrong to freeze the entire account. Here's what worked for us: 1. Get a letter from the funeral home confirming the date of death 2. Go to the bank IN PERSON with your executor documents AND the funeral home letter 3. Ask for the branch manager (not just any banker) 4. Explain that you need the non-SS funds for final estate expenses 5. Reference that under Reg E, they can hold the SS amount but must release other funds If they still refuse, ask them to document in writing WHY they are refusing to follow their fiduciary duty to the estate. That usually gets things moving. Also, weird tip - try checking your father's bank account online if possible. Sometimes SS reclaims the payment electronically and the bank doesn't even notice for a while.

My wife past away on november 12 and social security took back her nov payment in janaury. The bank should let u use the other money thats not SS money tho. They cabt keep ALL his money just the SS part. Maybe try a different branch? Sometimes difrent people know difrent rules.

One additional point that might help you: If your father was a veteran, the VA provides granite markers for free through the National Cemetery Administration. You just need to submit VA Form 40-1330. This might eliminate your need to access the bank account for that specific expense. Also, if you've already purchased the marker, you may be eligible for reimbursement up to a certain amount (currently about $250 for 2025).

Update us when you get this resolved! I'm dealing with a very similar situation for my aunt right now. So far I've spent about 5 hours on the phone with SSA spread across 3 calls and still don't have clear answers about the reclamation timeline. It shouldn't be this difficult!