• Stephanie O. Joy

Who Is Liable for SS Overpayment, a Beneficiary, or his Representative Payee?


Question:

I was the Rep Payee for a person receiving SSD. He has since passed and now he has received a notice of overpayment. Am I liable?

Answer:

That will likely depend on the specific facts on which there came to be an overpayment.

"A beneficiary and/or a representative payee receiving retirement, survivors or disability insurance, benefits on behalf of a beneficiary or SSI, may be equally liable for repayment of any overpayment received, as follows:

A. The beneficiary is liable if he or she received the benefit of the monies;

B. The representative payee is personally liable if he or she:

1. Was at fault in creating the overpayment; or

2. Did not apply the monies for the beneficiary's use and benefit." https://www.ssa.gov/OP_Home%2Fhandbook/handbook.19/handbook-1906.html

Since the Beneficiary is deceased, his liability will become a liability of his estate.


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