SSR 68-31: SECTIONS 204(a) and 204(d). -- UNDERPAYMENT -- GOOD ACQUITTANCE FOR PAYMENT TO CANADIAN ADMINISTRATOR OF INDIAN ESTATES AS LEGAL REPRESENTATIVE

20 CFR 404.503(e)

SSR 68-31

D, a Canadian Indian worker, died intestate in Canada January 4, 1968,

leaving an underpayment of social security benefits due him of $179.80. D

left no widow, children, or parents surviving. The Administrator of

Estates, of the Indian Affairs Branch of the Canadian Department of Indian

Affairs and Northern Development had applied for the Underpayment as legal

representative of D in accordance with section 204(d)(7) of the Social

Security Act as amended by the Social Security Amendments of 1967. He

appended to his request a copy of his delegation of authority from the

Minister of Indian Affairs and Northern Development of Canada to act as

Administrator of Estates and to supervise administration of all Indian

estates. This delegation is based upon §§ 42-43 of the Indian Act

contained in Chapter 149 of the Revised Statutes of Canada (1952).

Effective January 2, 1968, section 204(a) of the Social Security Act

provides in pertinent part that proper adjustment will be made when less

than the correct amount of payment has been made to any person under title

II of the Act, as follows: payment of the amount due will be made to the

underpaid person or, if he dies before any payment due him under this

title is completed, payment of the amount due, including the amount of any

unnegotiated checks, will be made to persons according to the following

order of priority as set out in subsection (d); (1) spouse either living

in the same household with the deceased individual at the time of his

death, or entitled to a benefit on the same earnings record for the month

of his death, (2) child or children entitled to benefits for the month of

death on the same earnings record, (3) parent or parents entitled to

benefits on the same earnings record for the month of death, (4) spouse

who was neither entitled to benefits on the same earnings record nor

living with the deceased individual, (5) child or children not entitled to

benefits on the same earnings r

of his death, (2) child or children entitled to benefits for the month of

death on the same earnings record, (3) parent or parents entitled to

benefits on the same earnings record for the month of death, (4) spouse

who was neither entitled to benefits on the same earnings record nor

living with the deceased individual, (5) child or children not entitled to

benefits on the same earnings record, (6) parent or parents not entitled

to benefits on the same earnings record. If there is no person who meets

the requirements of (1) through (6), or if each person who meets such

requirements dies before the payment due him under this title is

completed, then payment will be made to the legal representative of the

estate of the deceased individual.

The question to be resolved is therefore whether the Administrator of

Estates can qualify as "legal representative" of D's estate within the

meaning of section 204(d)(7) of the Social Security Act, as amended.

Qualification as legal representative depends on whether or not the party

can give the Administration good acquittance. One who has the power to

collect the decedent's estate can generally give the Administration good

acquittance.

The Indian Act cited above provides in pertinent part:

DESCENT OF PROPERTY

The quoted Canadian statute clearly grants to the (Canadian) Minister of

Indian Affairs and Northern Development the power to appoint executors of

the wills and administrators of the estates of deceased Indians, offices

which carry with them the authority to collect the debts due a decedent's

estate. Moreover, the delegation of authority to the Administrator of

Estates to act in these capacities appears in accordance with Indian

Estates Regulations which were cited in that delegation.

n Development the power to appoint executors of

the wills and administrators of the estates of deceased Indians, offices

which carry with them the authority to collect the debts due a decedent's

estate. Moreover, the delegation of authority to the Administrator of

Estates to act in these capacities appears in accordance with Indian

Estates Regulations which were cited in that delegation.

Accordingly, it is held that the Administrator of Estates may

qualify as "legal representative" of D's estate within the meaning of

section 204(d) of the Social Security Act, and thus, may be paid the

underpayment of $179.80 due the worker at the time of his death.