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Alicia54 Asked July 2019

After dad passes (fyi, he's still living) will/can Social Security freeze his bank account that it goes into, which is his Trust account?

My brother seems to think that in the event that our father passes,The Social Security Admin. will freeze his bank acct that his SS check gets directly deposited into (also know as the Trust acct). I am the Successor of the acct now because dad had dementia and I'm his full time caregiver/POA. I explained to my brother that his checks will stop and any money paid in advance(as I understand they pay ahead) will be returned/refunded from the bank. Brother wants me to deplete the chkg acct and put it all in a savings and only keep enough to cover expenses.
I disagree.
And also, how do you feel about brother getting copies of dads bank statements?.He has no say, I'm dad's primary advocate/POA, caregiver and is living with dad. Brother lives in another state. I personally don't feel it's necessary other than he has trust issues and when dad passes, am I going to have to split what ever monies are left in the bank acct with him. Per the trust, we split the estate 50/50. I guess I'll have to read more about that in the trust.
Any thoughts?

Isthisrealyreal Jul 2019
As POA you are obligated to protect your dads privacy. No one is entitled to see any information until the time they are made beneficiaries. Read the trust, it should be very clear about what happens.

If the account is named in the trust that account goes to the trust, it is the legal owner, not dad and not you. I would be surprised if that is the case, I think SS requires the recipients name on the account. If it is POD to you, your brother isn't entitled to any of the money, by law it goes to you.

It sounds like you are in for a rodeo when your dad passes. Your brother can't do anything because of the trust, but he sure can be a giant pain in the assets.

Alicia54 Jul 2019
I dont plan on moving any money.
I am the poa, successor to the bank acct, and executor of the estate. Dad has not instructed me but he is aware that brother wants bank statements. He doesn't understand it and just laughs. I am keeping record of dads money and all receipts. I just feel hes got trust issues, wants to be in control and possibly hurt/upset that dad chose me instead of him. I've done everything (getting banks on board that needs to be done per the trust. Now I can concentrate on taking care of dad. Thank you all for your imput!

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Rosered6 Jul 2019
I brought up the issue of the interaction because it's not unusual for there to be situations like this in which a parent expresses one general intent -- divide all property evenly between my children -- but then leaves out some assets or treats them differently, for example, by having a bank account for which only one child is the beneficiary. In situations like this, the child or children who are not beneficiaries of one or more assets or accounts might say, "But our parent said he wanted everything divided equally! This isn't equal! Sis will get more!" The parent might have known exactly what he or she was doing: divide most things equally but caregiver child gets more because she took care of me. But maybe the parent really did intend to divide the entire estate equally. So that's why I think it's a good idea to have a lawyer look at this now.

Rosered6 Jul 2019
I suggest that you consult an estate planning attorney and ask about your dad's accounts. Your description makes it sound as though you are listed as the payable-on-death beneficiary for your dad's bank account and that he also has a trust that lists you and your brother as 50-50 beneficiaries of all the property in the trust. If I were you, I'd want to know ahead of time (i.e., before your dad dies, if possible) whether the trust was set up correctly and how the bank account and the trust interact, if at all.

I would not do what your brother is recommending: taking the money out of the account for which you're listed as beneficiary and putting it into a different account. You seem to be acting appropriately as your father's financial POA agent, and who knows what your brother's motivations are for that recommendation.

Good luck.
worriedinCali Jul 2019
If the bank account is in dads name and wasn’t put in the name of the trust then it’s not part of the trust and there’s no interaction.
worriedinCali Jul 2019
SS actually pays a behind. You receive June’s payment in July, July’s in August and so on. However if your dad doesn’t live the entire month of July for example, the check he receives in August will go back to SS.

SS doesn’t freeze accounts but banks will if they are notified that the account holder has died.
OldSailor Jul 2019
You are correct. SS pays behind. Payment is based on your date of birth.

Ours were on the second Wednesday of the month. Luz passed on the 19th of the month. No check was received the following month and no funds were extracted from the bank accounts.
The only financial transactions from SS after her death was the survivors benefit check after I went to the office to ensure checks were stopped and no payback was pending.
We had a joint account that she used solely for her funds. I had no problems with the banks as long as she had designated a beneficiary.
I have a separate account for my funds. Accounting was very simple.
No one froze any of our accounts. Not even the court handling the guardianship, outside of what was/is required by state law. After her death the states block of her account was lifted.
anonymous912123 Jul 2019
Your brother is wrong. Yes, SS pays ahead so his account would only be subject to one repayment to SS, there is no freeze on your fathers bank account., this just uniformed verbiage.

rovana Jul 2019
You are correct about SS paying ahead - brother is wrong.  They will take back his SS check if he did not live the whole month, but I  they would not freeze the account.  If brother has problems with trusting people, then sharing financial info might reassure him that nothing shady is going on.  (I'm assuming Dad has not instructed you not to.) If he thinks he is going to hide money from the government, then he should think again. So not worth the hassle.

AlvaDeer Jul 2019
I think it is lovely to keep your brother informed on a every three month basis. You have to keep records carefully anyway, so just make him a copy so he is reassured.
They may freeze the account during the time it takes to recover the SS check they put in. Even if Dad dies on the last day of the month they will want back all the funds for that month. It is difficult even as POA to mess with Social Security, so don't touch it would be my advice. Once the account is closed Social Security will not deal with YOUR instructions as his POA but you will have papers to do for them. Social security ONLY trusts completely those accounts held in trust. Don't worry, but if you do, take out enough to cover funeral and a few months expenses to start settlement of Dad's estate. Check with your bank, as they will be the first to reassure you. Make an appointment with them. Not a teller window.

JoAnn29 Jul 2019
I had a whole lot posted but it just disappeared.

No SS does not freeze an acct.

As POA you are not obligated to give brother any info concerning Dads finances. No, he is not entitled to see Dads statement. Some here will tell you ur not allowed to give out Dads info.

I will assume ur Executor. As such, you will give an accounting of what bills needed to be paid upon Dads death. Anything to do with his estate. At that time your brother can ask for an accting concerning the money spent while you handled Dads money. Statements should be good for this. If you reimburse yourself, keep the receipts with the check number you used to pay urself back.

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