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!

I'm so sorry for your loss, Olivia. This sounds incredibly frustrating to deal with during an already difficult time. I went through something similar when my grandmother passed last year. A few things that helped me: First, definitely file that SSA-1724 form that Natasha mentioned - it really does help speed up the process. Second, when you go to the bank in person, bring multiple copies of everything (death cert, executor papers, etc.) because they sometimes want to keep copies for their files. One thing I learned the hard way - some banks have specific "estate services" departments that are separate from regular customer service. Ask if your father's bank has one of these departments. The regular tellers often don't know the proper procedures, but the estate specialists usually do. Also, document everything! Keep notes of who you spoke with, when, and what they told you. If you end up needing to escalate to the state banking authority like Connor suggested, having that paper trail really helps. Hope you get this sorted out soon so you can get that marker installed for your father. Thank you for his service.

I'm really sorry for your loss, Olivia. This bureaucratic nightmare is the last thing you need while grieving. I went through something very similar when my stepfather passed away in 2022. Here's what ultimately worked for me: I called the bank's corporate customer service line (not the local branch) and specifically asked to speak with their "fiduciary services" or "estate administration" department. These folks actually understand the law around estate accounts and SSA reclamations. The local branch staff often just follow whatever policy they think they remember. When I explained that they were violating their fiduciary duty by freezing non-SSA funds, they transferred me to someone who could actually help. Within 24 hours, they had segregated just the SSA payment amount and released the rest of the funds. Also, if you haven't already, call SSA and specifically ask them to put a "flag" on your father's account showing that you've reported the death. Sometimes the reclamation gets delayed simply because different SSA systems aren't talking to each other properly. The granite base for the VA marker is a legitimate estate expense - you shouldn't have to pay for that out of your own pocket. Push back hard on this!

I'm so sorry for your loss, Olivia. This whole process is unnecessarily complicated during an already difficult time. I went through something very similar when my mother passed away in 2023. One thing that really helped me was getting a letter from Social Security confirming the date they were notified of the death. You can request this by calling their main number and asking for written confirmation that the death has been reported to their system. Having this documentation helped convince the bank that I was handling everything properly. Also, don't let the bank convince you that freezing the entire account is "standard procedure." It's not. They're required to only hold funds equal to any benefits that might be reclaimed. If your father had other income sources (like a pension or other deposits), those funds should be available to you as executor. If the bank continues to be difficult, you might want to contact your state's Department of Financial Institutions or Banking Commission. They take complaints about improper handling of estate accounts seriously, and banks usually resolve these issues quickly once a regulatory complaint is filed. Hang in there - this will get resolved, and your father will get the proper memorial he deserves.

I'm so sorry for your loss, Olivia. Dealing with this bureaucratic mess while grieving is just awful. I went through almost the identical situation when my dad passed in September 2024. What finally broke the logjam for me was doing three things simultaneously: 1) Filing the SSA-1724 form that others mentioned (you can actually submit it online through your SSA account if you create one), 2) Getting a written statement from SSA confirming they had received the death notification and would process the reclamation within 60-90 days, and 3) Taking that SSA letter to the bank along with a formal written request for them to release all non-SSA funds. The key phrase that got the bank's attention was when I told them I would be reporting their "improper administration of estate assets" to both the state banking commission and the probate court. Suddenly they found a way to segregate just the SS payment amount. Also, check if your father's bank offers "estate account" services - some banks will actually convert the regular account to a proper estate account once you provide the executor paperwork, which gives you much clearer access to funds while protecting the SSA reclamation amount. The whole thing took about 6 weeks total, but once I had all the right documentation it moved quickly. You'll get through this!

I'm so sorry for your loss, Olivia. Going through this bureaucratic nightmare while grieving is truly unfair. I dealt with a very similar situation when my uncle passed away last year. One thing that really helped me was contacting the bank's "Trust and Estate Services" department directly - many larger banks have specialized teams for exactly these situations. They understand the SSA reclamation rules much better than regular customer service. You can usually find this department by calling the main bank number and asking to be transferred to "estate services" or "fiduciary services." Also, when you file that SSA-1724 form, ask them to expedite it due to the bank situation. Sometimes they can flag urgent cases, especially when estate settlement is being delayed. For the veteran's marker base, you might also check with the cemetery directly - sometimes they have programs or can recommend local veterans' organizations that help with these costs. Our local VFW actually helped cover similar expenses for my uncle's memorial. Document every conversation with the bank (date, time, who you spoke with, what they said). If you need to escalate later, having that record really helps. You shouldn't have to pay out of pocket for your father's final expenses when his estate has funds available. Hang in there - this will get resolved, and your father will get the proper tribute he deserves for his service.

I'm so sorry for your loss, Olivia. This situation is incredibly frustrating and unfortunately all too common. I went through something very similar when my grandmother passed away in 2023. The advice about calling the bank's Trust and Estate Services department is spot-on - that's exactly what finally worked for me. Regular branch staff often don't understand the nuances of estate law and SSA reclamations, but the specialized departments do. One additional tip that saved me a lot of headaches: when you do get through to the right person at the bank, ask them to send you their specific written policy on handling SSA reclamations in estate accounts. Having their own policy document in writing made it much easier to hold them accountable when different representatives gave me conflicting information. Also, for the veteran's marker base, check with your local American Legion or VFW posts. Many have small memorial funds specifically for situations like this. Some monument companies also offer payment plans or discounts for veterans' families. The whole process took about 8 weeks for me from start to finish, but once I had the right contacts at both SSA and the bank, things moved much faster. Keep pushing - you're doing everything right, and your father deserves that proper memorial. Thank you for his service to our country.

I'm so sorry for your loss, Olivia. What you're going through sounds incredibly frustrating, especially during such a difficult time. I just wanted to add one more resource that might help - if you're having trouble getting through to SSA by phone, you can also visit your local Social Security office in person. Sometimes they can process forms like the SSA-1724 on the spot and give you immediate documentation that the death has been reported and the reclamation is in progress. Also, regarding the bank situation - if all else fails and you need to access funds urgently for the veteran's marker, you might consider asking the probate court that issued your executor papers to issue a specific court order directing the bank to release funds for legitimate estate expenses. Most banks will comply immediately when presented with a direct court order. The fact that your father served our country makes this situation even more frustrating. He deserves that proper memorial, and you shouldn't have to jump through endless hoops to honor his service. Keep advocating for yourself - you're handling a difficult situation with grace, and this will get resolved.

I'm so sorry for your loss, Olivia. This bureaucratic mess is the last thing you should have to deal with while grieving your father's passing. I went through something very similar when my stepfather passed away in 2021. The key thing that finally worked for me was understanding that banks often have different departments with different levels of knowledge about estate law. Here's what I'd suggest based on what's worked for others and my own experience: 1. Call the bank's main corporate number (not the local branch) and ask specifically for "Estate Services," "Trust Services," or "Fiduciary Services." These departments deal with this exact situation regularly and understand the legal requirements. 2. When you speak with them, be very clear that they can only hold funds equal to the SSA payment amount - they cannot legally freeze the entire account. Reference your rights as executor under state law. 3. If they continue to refuse, ask them to provide their policy in writing regarding SSA reclamations in estate accounts. This often makes them realize they need to escalate to someone who actually knows the rules. 4. Document everything - dates, times, names, what was said. If you need to file a complaint with your state banking commission later, this paper trail is crucial. Your father served our country and deserves that proper memorial. Don't let bureaucratic confusion prevent you from honoring his service. You've got this!

I'm so sorry for your loss, Olivia. This situation is unfortunately very common and incredibly frustrating to deal with during an already difficult time. One thing that might help expedite the SSA reclamation process is to also file Form SSA-721 ("Statement Regarding the Disposition of a Check Drawn on the United States Treasury") along with the SSA-1724 that others mentioned. This form specifically addresses the return of benefits paid after death and can sometimes speed things up. Also, when dealing with the bank, try asking specifically if they have a "deceased account specialist" or "bereavement services" department. Many larger banks have specialized staff who handle these situations daily and understand the proper procedures much better than general customer service. If you're still having trouble after trying these suggestions, you might want to contact your state's Attorney General's office - they often have consumer protection divisions that can intervene in banking disputes, especially when estate funds are being improperly withheld. Your father's military service deserves to be properly honored, and you shouldn't have to pay out of pocket for legitimate estate expenses. Keep pushing - this will get resolved!

I'm so sorry for your loss, Olivia. What you're dealing with is unfortunately very common but still incredibly frustrating during such a difficult time. One thing that might help is to know that most banks have a specific timeframe they're supposed to follow for SSA reclamations - typically they should only hold funds for 60-90 days maximum while waiting for SSA to reclaim the payment. If it's been over 2 months as you mentioned, they may actually be exceeding their own internal guidelines. When you call the bank's Estate Services department (which I highly recommend based on the other excellent advice here), ask them specifically what their written policy is regarding timeframes for holding SSA payments. Many banks will actually release the funds after a certain period if SSA hasn't acted, especially when presented with proper executor documentation and the SSA forms showing you've initiated the reclamation process. Also, since your father was a veteran, you might want to reach out to your county's Veterans Service Officer. They often have experience dealing with these exact situations and may know specific contacts at both SSA and local banks who can help expedite things. Many counties have these officers available to help veterans' families navigate bureaucratic issues like this. Your father served our country and deserves that proper memorial. Don't give up - you're doing everything right, and this will get resolved. Thank you for his service.