Conserved Funds

As payee, funds not needed for the beneficiary’s current maintenance should be conserved or invested on behalf of the beneficiary in an account that is insured under federal or state law. Any account must show that you, the payee, holds the property in trust for the beneficiary and that you, the payee, has only a fiduciary interest in the funds. In the event that you, the payee, ceases to serve as the beneficiary’s payee, any conserved funds must be returned to Social Security to be transferred to a new payee or to the beneficiary moving into direct pay status.

Disposing Conserved Funds After You Stop Being the Payee

If you will no longer be the payee, you must notify Social Security immediately. When you are no longer responsible for the beneficiary, you must return any funds, including interest and cash on hand to Social Security. We will then reissue the funds to the beneficiary or to a new payee.

Disposing Conserved Funds When a Beneficiary Dies

When a person receiving Social Security payments dies:

• And receives Social Security Retirement, auxiliary, survivor or Disability benefits —
  
  No payment is due for the month of death, even if he/she dies on the last day of the month. Any payment received for the month of death or later must be returned.
• And receives a Supplemental Security Income—
  
  Payments are payable for the month of death. However, you must return any SSI payments received for any months after the month of death.

Any Conserved funds belonging to the beneficiary are the property of his/her estate. They must be given to the legal representative of the beneficiary’s estate or otherwise handled according to state law. See the below links for information about the laws in your state:

• Iowa
• Kansas
• Missouri
• Nebraska