B-140429, SEP. 9, 1959
Highlights
COPIES OF WHICH ARE ENCLOSED FOR YOUR INFORMATION. WE RECOGNIZE THAT PAYMENT TO THE SURVIVOR OF THE PROCEEDS OF BENEFIT CHECKS NOT NEGOTIATED BY A DECEDENT AT THE TIME OF HIS DEATH WAS IN ACCORD WITH THE GENERAL UNDERSTANDINGS AND DETERMINATION REACHED IN OUR LETTER OF JUNE 8. THAT AUTHORITY WAS BASED. IT WAS NOT CONTEMPLATED. THE UNNEGOTIATED CHECKS WERE FORWARDED TO THE SOCIAL SECURITY ADMINISTRATION BY AN EXECUTOR OR ADMINISTRATOR OF THE ESTATE OF THE DECREASED BENEFICIARY. IN VIEW OF THE ADMINISTRATIVE SAVINGS EFFECTED UNDER THE PROCEDURE AND SINCE WE ARE NOT AWARE OF ANY OTHER CASE WHERE THE GOVERNMENT MIGHT ULTIMATELY SUFFER A LOSS UNDER THE PROCEDURE WE SEE NO NEED TO DEPART FROM THE ESTABLISHED PROCEDURE AS ORIGINALLY CONTEMPLATED.
B-140429, SEP. 9, 1959
TO THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE:
BY LETTER OF JUNE 26, 1959, THE CHICAGO AREA OFFICE OF THE SOCIAL SECURITY ADMINISTRATION, BUREAU OF OLD-AGE AND SURVIVORS INSURANCE REFERRED TO THIS OFFICE THE MATTER COVERED IN OUR LETTERS OF TODAY TO MRS. OLIVIA GEIGER AND BATLZ AND GUYMON, ATTORNEYS, COPIES OF WHICH ARE ENCLOSED FOR YOUR INFORMATION.
WE RECOGNIZE THAT PAYMENT TO THE SURVIVOR OF THE PROCEEDS OF BENEFIT CHECKS NOT NEGOTIATED BY A DECEDENT AT THE TIME OF HIS DEATH WAS IN ACCORD WITH THE GENERAL UNDERSTANDINGS AND DETERMINATION REACHED IN OUR LETTER OF JUNE 8, 1953, B-13686, B-74791. HOWEVER, WHERE THE EXECUTORS OF A DECEDENT'S ESTATE RETURN SUCH CHECKS FOR THE PURPOSE OF HAVING THEM REISSUED IN THE NAME OF THE ESTATE, IT APPEARS THAT THE PROPRIETY OF PAYMENT TO OTHER THAN THE ESTATE WOULD BE RENDERED SUFFICIENTLY DOUBTFUL TO BE REFERRED TO THIS OFFICE FOR SETTLEMENT.
IN AUTHORIZING YOUR DEPARTMENT TO ADD THE PROCEEDS OF UNNEGOTIATED CHECKS TO SUBSEQUENT BENEFITS PAYABLE TO SURVIVORS UNDER THE SOCIAL SECURITY ACT, RATHER THAN TO TRANSMIT THEM TO THIS OFFICE FOR SETTLEMENT AS PART OF DECEDENT'S ESTATE IN ACCORDANCE WITH THE LAWS OF HIS DOMICILE, WE RECOGNIZED THAT THERE MIGHT ARISE INSTANCES WHERE PAYMENT WOULD BE MADE TO AN IMPROPER PARTY. THAT AUTHORITY WAS BASED, IN PART, ON THE PROPOSITION THAT IN THE VAST MAJORITY OF CASES SUCH ACTION BY OUR DEPARTMENT WOULD RESULT IN PAYMENT TO THE SAME PERSON AS WOULD BE ENTITLED THERETO UNDER THE LAWS OF THE DECEDENT'S DOMICILE. IT WAS NOT CONTEMPLATED, HOWEVER, THAT THAT PROCEDURE WOULD BE FOLLOWED WHERE, AS HERE, THE UNNEGOTIATED CHECKS WERE FORWARDED TO THE SOCIAL SECURITY ADMINISTRATION BY AN EXECUTOR OR ADMINISTRATOR OF THE ESTATE OF THE DECREASED BENEFICIARY.
IN VIEW OF THE ADMINISTRATIVE SAVINGS EFFECTED UNDER THE PROCEDURE AND SINCE WE ARE NOT AWARE OF ANY OTHER CASE WHERE THE GOVERNMENT MIGHT ULTIMATELY SUFFER A LOSS UNDER THE PROCEDURE WE SEE NO NEED TO DEPART FROM THE ESTABLISHED PROCEDURE AS ORIGINALLY CONTEMPLATED. ALL FUTURE CASES, HOWEVER, WHERE THE UNNEGOTIATED CHECKS ARE TURNED TO THE SOCIAL SECURITY ADMINISTRATION BY AN EXECUTOR OR ADMINISTRATOR OF THE ESTATE OF A DECEASED BENEFICIARY SHOULD BE FORWARDED TO THE CLAIMS DIVISION OF THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT.