Social Security dilemma with a bank account?

If your dad was left the things by your grandfather (by will or simply being next of kin) then they are his to take out. Though you may have to fill out some paperwork to get them.

Everything social security paid to your grandfather prior to his death is now the property of your father. If social security continued to pay into your grandfathers account after his death, by law you need to report that so they can take back the money they shouldn’t have been depositing.

Further more I don’t think Bank of America can legally “lose” the account from inactivity. And if they do I think they have to give it to you. It sounds like they’re trying to trick you out of money, and frankly I would take it out and not put it back there.

This is all kind of puzzling. What did your dad do after your grandfather’s death? It would have been normal and proper to close the account with BoA, withdraw the money and re-invest or deposit it in another account, either at another bank or another account (of your father’s own) at BoA. The only way that your grandfather’s account should have been left open (if there’s any way at all) would be if it was a joint account with your father in the first place.

In any case, if Social Security has been paying into the account since your grandfather’s death, then to withdraw that money and use it would be a criminal act on your father’s part (or anyone else who knows that the original recipient died and the payments didn’t cease). In fact, not having reported that fact, if your father knew of the continuing payments, all by itself could get your dad in some trouble.

Based on what you’ve written here, I think you should advise your dad to get a lawyer, and not say a word to anyone right now about what he knew and when he knew it. And don’t withdraw money from the account in any amount if you know that SS has been paying into it after your grandfather’s death.

If I’m not understanding your Q, and the payments from SS stopped right after your grandfather’s death, and the $40 K belonged to your grandfather on the day he died, then the money is now your father’s property, no lawyers need to be involved, and he should withdraw the money, put it in his own account, and close your grandfather’s account properly.

By all means, get the Social Security straightened out and get the money OUT of Bank of America! If Social Security was still being depositing, the account should not be considered dormant, but they probably put a few extra months in there. But BofA are crooks – they ripped my mom off, again claiming the account was dormant and charging fees in excess of the account balance.

Right now, Bank of America is scoping every account with their bank to claim as assets. remember, the Federal Government still owns 12% of Bank of America in loans the bank owes it. they are looking for any “loose” money out there to confiscate.

I would go immediately to your local Soc. Security office and talk with an agent. you may have to wait a while, but it may be well-worth the wait.

Better hurry before Bank of America closes the account, for any excuse they can drum up, and the money is theirs.

Bank full of crooks is more like it. God I hate huge banks.

Thanks for the answers!
@CyanoticWasp I asked my dad if he ever reported my grandads’ dead and he said no he did not. My grandad died in Mexico, so he says it nover crossed his mind to do so (and my dad lives in Mexico as well). I guess my dad is better off by not doing anything, it would be a good idea to get a lawyer if he was living in the U.S. but being in Mexico I guess he doesn’t have to worry about it. Right? And yes, Social Security has been making deposits till this day, but my dad has not withdrawn any money from that account ever.

@mrmijunte I think you have gotten some pretty good answers here. Social security does not pay after the death of an individual—if they know about it. So, your dad does need to report the death. He will be told what he is overpaid. Then, he should access this account at the bank and remove the money that is his. I don’t see why where your dad is living (in the US or in Mexico) would make any of this very different. I don’t think that Social Security likes to pay when it shouldn’t. Make sure they know of your grand dad’s death.

Bank of America is not trying to steal, confiscate or convert the money in your grandather’s account. They are cleaning up dormant accounts.
Under the laws of every State, there is something called Escheat or unclaimed or abandoned property. Depending on the State, dormant accounts are deemed to be abandoned after some period of time, usually three to six years, After that time, the assets are escheatable and become the property of the State.
Bank of America is required by law to seek out the owner(s) of an account in an attempt to return the property to the rightful owner. If the account holder, in this case, BofA, can not find the rightful owner, the property reverts to the State treasury where it remains in perpetuity until claimed by the rightful owner of the property.
This applies to all commercial enterprises and would include uncashed dividend checks, unrefunded deposits held by the electric or phone companies and almost any other kind of customer credit balance. So if there is a $39 credit on your Macy’s charge and it sits there for five years, technically it is abandoned property and reverts to the State.

In your grandfather’s case, the account was inactive for a period of time and they attempted to contact your father. If your father’s name is on the account he should be receiving periodic statements which would show the balance and the deposits into the account.

The social security deposits belong to the Social Security Administration. I don’t know how exactly restitution has to be made but your father should take care of this quickly.

As to the original balance in the account it should have gone to your father in the first place. Was it a joint account? If not, there may be paperwork required by the bank to get the funds released or need the permission of a local court.

The bank should be able to help you out, they deal with this sort of thing all of the time.

SRM

In general, Social Security payments cease at the time of death.
There is a general death benefit of $255 for funeral expenses but you have to apply for this.
Six years later is a long time to wait to make the application. Call SSA

@srmorgan – if money is being deposited into an account on a regular basis, it’s not dormant.

And in my (elderly) mother’s case, she had a small balance in there for years (when she tried to close out the account, they apparently gave her the wrong amount or something, and she didn’t follow up on it). They instituted new monthly fees, which were more than the amount in her account. Instead of just notifying her and/or sending her a check for her balance, they applied the fees, which overdrew her account, and THEN they charged her an overdraft fee! She had to send THEM money to be able to close the account! In my opinion, that’s theft. It’s just plain wrong.