Conserved Funds

As a representative payee, benefit payments not needed for the beneficiary’s current maintenance should be conserved or invested on behalf of the beneficiary in an account that is insured under federal or state law. Any account must show that you, the representative payee, hold the property in trust for the beneficiary and that you, the representative payee, has only a fiduciary interest in the funds. In the event that you, the representative payee, cease to serve as the beneficiary’s payee, any conserved funds must be returned to the Social Security Administration (SSA) to be transferred to a new representative payee or to the beneficiary moving into direct pay status.

Disposing Conserved Funds After You Stop Being the Representative Payee

If you will no longer be the representative payee, you must notify SSA immediately. When you are no longer responsible for the beneficiary, you must return any funds, including interest and cash on hand, to SSA. We will then reissue the funds to the beneficiary or to a new representative payee.

Disposing Conserved Funds When a Beneficiary Dies

When a person receiving Social Security payments dies:

  • And receives Social Security Retirement, auxiliary, survivor or Disability benefits

    No payment is due for the month of death, even if he or she dies on the last day of the month. Any payment received for the month of death or later must be returned.

  • And receives a Supplemental Security Income

    Payments are payable for the month of death. However, you must return any SSI payments received for any months after the month of death.

Any conserved funds belonging to the beneficiary are the property of his or her estate. They must be given to the legal representative of the beneficiary’s estate or otherwise handled according to state law.