Completing SSA Form 1724

[BonnieW519553]

My wife is the legal representative for her mother who recently passed away.

SSA took back her monthly benefit by reversing her direct deposit.  Although she is due the benefit, SSA says we have to fill out Form 1724 to recover the money.

My question:

Do we need to complete Question 2, which asks for the children of the deceased?  As the legal rep, my wife will settle the estate and distribute the money per her will.

Thanks.

[GailL1]

Fill it out just as it says -  

SSA.gov - Form SSA-1724 | Claim For Amounts Due In The Case Of Deceased Beneficiary 

As her mother’s legal rep, your wife can go ahead and work the estate per probate in the state where the deceased lived - most likely this means opening an IRS estate account and finishing her estate disbursement as indicated by her will or the laws in the state where the deceased lived.   

IRS.gov - File an estate tax income tax return 

The SSA will handle the disbursement of the final benefit based on the way they disburse it  as well as any Medicare premium refund. (see the SSA link above).

You can also ask your question to the AARP if you don’t want mine.

AARP.org - Ask your Question  

[BonnieW519553]

Thank you for your response.

Just to clarify, my wife is also the trustee of a revocable trust to which all her mother's assets were gifted five years ago.  No probate is involved.  Our plan was to direct deposit the money to the revocable trust,  which, once all affairs are settled, will be distributed to her and her brother.

We were concerned that listing the children would result in payments to each directly, rather than returning funds to the trust (where they were before SSA taking them back). 

So, given our intention, would you still advise listing the children?

[GailL1]

I would do as the SSA has instructed on the Form 1724 - 

The instruction link says “  Please complete this form to help us decide who should receive any payment due.“  

SSA is in the drivers seat here - keep this out of the Trust and let them take care of the distribution - same with any Medicare premium refund the deceased may be due.

Or you can ask AARP or SSA if you don’t want my reply - I just go by what they say on the instructions - has never failed me.