Bank notified Social Security of death on the wrong person, won't release mom's money. How do I resolve this?

You might also call your congress representative. Their staffs have a great deal of influence to get things resolved.

I never heard of a bank notifying social security that someone had passed, usually it is the funeral home that does the notifying. If this was the bank's mistake, it's up to the bank to correct it.

I would call a local TV station that does consumer watch type segments and explain to them what happened. Maybe the consumer Reporter could help.

Get a letter stating your mother is alive, how the mix-up happened, that includes your Mom's Social Security number, from the care facility. Google your state's congressman, and senators.Get the nearest office to you. It's better in person; so drive if you can. Otherwise call and write a letter stating the problem, how you tried and failed to resolve the problem, and what you want done. Include the proof from the care facility. Good luck, give the name of the federal employee, who refused to fix the situation, and didn't return calls. This will be fixed within a week.

Scotty Pelley on CBS 60 min had a program on this. Social Security Master Death File is incorrect in some cases they were saying. They interviewed people who have had a difficult time proving they are still alive.
They also have a lot of people that aren't on the list that should be. The LATimes had an article saying 60 min did a bad job reporting on the problem. Google Dead or Alive CBS.

You'll have to copy and paste the url. It gives an error page if you try to click it from here -- I think because it has the period at the end of the url.

I did a bit more checking and the SSA can only deal with you if you are the representative payee. If the bank is unable to undo what was done, perhaps it is something you want to look into. There is information on what to do at https://www.ssa.gov/payee/index.htm. I hope it will be easier than this.

Unfortunately, the SSA does not recognize or deal with POAs. How has the bank followed through with this?

Oy, having to deal with the Social Security Administration is the stuff nightmares are made of. I don't envy you.

Find your local SSA and go there in person. If you call the SSA it's an hour wait time on hold.

Call your congressman and senator. File a complaint with your state attorney general. Call the Federal Reserve. Attack from all sides.