TN 5 (10-09)

A. Policy for determining liability for repayment of a deceased individual’s overpayment

The representative payee (or his or her estate) is solely liable for repaying any payment(s) received by a representative payee on behalf of a deceased recipient after the deceased recipient’s month of death. This policy was effective 12/04/2008.

1. Overpayment is Less Than $30.01

1. If the amount of the unresolved overpayment or the outstanding overpayment balance is less than $30.01, we determine the amount to be uncollectible and do not pursue recovery.

2. If the overpayment was the result of a representative payee receiving SSI payments on behalf of a deceased recipient after the month of the recipient’s death, we pursue recovery of the overpayment solely from the representative payee or the representative payee’s estate.

2. Overpayment is between $30.01 and $5,000.00

If the amount of the unresolved overpayment or the outstanding overpayment balance is at least $30.01 but less than $5,000.01, we notify the estate of the deceased of the overpayment but do not pursue further recovery unless any of the following situations are present:

• A liable representative payee;

• A liable spouse;

• Under certain circumstances, the sponsor of an alien recipient; or

• An indication of fraud

3. Overpayment is more than $5,000.00

If the amount of the unresolved overpayment or the outstanding overpayment balance is more than $5,000.00, we determine whether an estate exists.

If an estate exists, we pursue recovery from the estate. We also may pursue recovery from a distributee of the estate.

A distributee of an estate is liable for repayment of the overpayment if he or she has in his or her possession proceeds of the estate or property attributable to such proceeds.

4. If fraud is suspected

If there are indications that the overpayment was the result of fraud, we develop the potential for recovery of the overpayment from the individual(s) who committed fraud.

5. Estate liability

If the estate is liable for repayment and the assets of the estate have been distributed, the distributees may be liable for repayment of the overpayment.

A distributee is liable for repayment to the extent that he or she has in his or her possession proceeds of the estate or property attributable to such proceeds when he or she is notified of the overpayment.

B. Procedures for determining liability for repayment of a deceased individual’s overpayment

Any payment(s) received by a representative payee on behalf of the deceased recipient after the deceased recipient’s month of death are overpayments that the representative payee (or his or her estate) is solely liable for repaying. This policy was effective 12/04/2008.

1. If the outstanding balance of an overpayment at the month of the overpaid individual’s death is less than $5,000.01, notify the estate of the deceased overpaid individual but do not pursue recovery of the overpayment unless any of the following situations are present:

   • A liable representative payee;

   • A liable spouse;

   • A sponsor of an alien recipient (under certain circumstances); or

   • An indication of fraud

2. If the outstanding balance of an overpayment at the month of the overpaid individual’s death is $5,000.01 or more; determine whether the deceased overpaid recipient has an estate. If there is an estate, recover the overpayment from the estate or from the distributes of the estate IF there is

   • A liable representative payee

   • A liable spouse

   • A sponsor of an alien recipient (under certain circumstances)

3. Determine whether payee, spouse or sponsor has an estate. If there is an estate, recover the overpayment from the estate or from the distributees of the estate.

4. If there are indications that the overpayment was the result of fraud, develop the potential for recovery of the overpayment from the individual(s) who committed fraud.

   If the estate is liable for repayment and the assets of the estate have been distributed, the distributees may be liable for repayment of the overpayment.

   A distributee is liable for repayment to the extent that he or she has in his or her possession proceeds of the estate or property attributable to such proceeds when he or she is notified of the overpayment.

C. Estate does not exist

If an estate does not exist, seek recovery from the liable representative payee or the liable spouse.

If there is neither a liable representative payee nor a liable spouse, discontinue recovery efforts. For policies and procedures for terminating overpayment recovery efforts from a deceased overpaid individual, see SI 02220.053.

D. If you suspect that fraud caused the overpayment

If there are indications that the overpayment was the result of fraud, develop the potential for recovery of the overpayment from the individual(s) who committed fraud.

For information on developing fraud during the development of overpayment recovery, see SI 02201.007.

E. References

• SI 02201.007- Supplemental Security Income (SSI): Overpayment Fraud

• SI 02201.020 - Supplemental Security income (SSI): Who is Liable For Repayment? Living Overpaid Individual

• SI 02220.045 - Supplemental Security Income (SSI) Recovery from an Estate

• SI 02220.053 - Suspension and Termination of Supplemental Security Income (SSI) Overpayment Recovery Efforts for a Deceased Individual