SSR 68-72: SECTION 204(d)(7). -- UNDERPAYMENT -- PAYMENT TO DISTRIBUTEE OF DECEDENTS ESTATE AS LEGAL REPRESENTATIVE

SSR 68-72

D, a deceased wage earner, was due an underpayment of benefits in the

amount of $2,307 at the time of his death. The superior Court of the State

of California issued an order entitled "Order Settling Final Account and

For Distribution" in the matter of D's estate, declaring that H, sister of

the decedent, was his only heir and that all of D's estate was to be

distributed to her. H filed claim for the underpayment as legal

representative of D's estate on February 14, 1968, in accordance with

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

The question to be resolved here is whether H, as only heir and

distributee of D's estate may give the Social Security Administration good

acquittance for the underpayment and thus qualify for such underpayment as

the legal representative of the estate for purposes of section 204(d)(7)

of the Act.

Section 204(d)(7) of the Act authorizes payment of the amount due a

deceased beneficiary to the legal representative of the estate of such

deceased individual where, as in this case, there is no surviving spouse,

child, or parent of the decedent. 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. H has the power to

collect the decedent's estate. Under Section 1021 of the California

Probate Code, the distributees may, after the decree of distribution

becomes final, "demand, sue for, and recover their respective shares from

the executor or administrator, or any person having the same in

possession." The decree in the instant case does not specifically list the

social security underpayment due the decedent's estate. However, it

distributes to H, ". . . the residue of cash, and all other property

belonging to said estate, whether described herein or not. . .

sue for, and recover their respective shares from

the executor or administrator, or any person having the same in

possession." The decree in the instant case does not specifically list the

social security underpayment due the decedent's estate. However, it

distributes to H, ". . . the residue of cash, and all other property

belonging to said estate, whether described herein or not. . . . The

California courts are clear that such clauses are not void for uncertainty

of description; they pass title just as a literal interpretation of the

language suggests they would. Hunphrey v. Protestant Episcopal

Church, Diocese of Los Angeles 97 P. 187 (Cal. 1908).

It is therefore concluded that the underpayment is part of the property

of the decedent's estate distributed to H and that the Administration will

receive good acquittance if it pays the amount of the underpayment to

her.

Accordingly, it is held that H qualifies as legal representative

of the deceased beneficiary's estate within the meaning of section 204 of

the Act, and may thus be paid the underpayment of $2,307 which was due the

wage earner at the time of his death.