SSR 70-4: SECTION 204(d)(7). -- UNDERPAYMENT -- PAYMENT TO RESIDUARY LEGATEE OF DECEASED BENEFICIARY'S STATE AS "LEGAL REPRESENTATIVE"

20 CFR 404.503

SSR 70-4

R, a beneficiary, was due widow's benefits in the amount of $538.60 at

the time she died, domiciled in Kansas. Under section 204 of the Social

Security Act the amount unpaid became an underpayment. Her estate was

administered and closed, and the co-executors were discharged. The

attorney representing the estate presented a certified copy of the

"Journal Entry of Final Settlement" of the estate signed by a county

probate court. It showed that R had made specific bequests to four heirs

and left the residuary estate entirely to C, who was her grandson and only

surviving relative. The estate was sufficient to meet all bequests and

expenses.

Section 204(d)(7) of the Social Security Act as amended, provides that

amounts due a deceased beneficiary under the retirement, survivors, and

disability programs will be paid to the "legal representative" if the

individual's estate where, as in this case, there is no surviving spouse,

child, or parent of the decedent. Since the decedent's legal

representatives were discharged before the underpayment was paid, advice

has been requested in order to determine whether the underpayment may be

paid to C, the sole heir of the residuary estate. The answer to this

question depends upon whether C can give the Social Security

Administration good acquittance and thus qualify for such underpayment as

the "legal representative" of R's estate within the meaning of section

204(d)(7) of the Act.

t was paid, advice

has been requested in order to determine whether the underpayment may be

paid to C, the sole heir of the residuary estate. The answer to this

question depends upon whether C can give the Social Security

Administration good acquittance and thus qualify for such underpayment as

the "legal representative" of R's estate within the meaning of section

204(d)(7) of the Act.

A determination as to who constitutes a "legal representative" for

purposes of section 204(d)(7) of the Social Security Act does not depend

upon whether the payee falls within the strict definition of a "legal

representative" or has substantially all of the general powers of an

administrator. It is necessary that by payment of the underpayment the

Social Security Administration can obtain good acquittance. It is clear

that an individual who was named as a residuary legatee by a Kansas

probate court pursuant to Kansas Statutes Annotated 59-2249, following

formal Administration of a deceased beneficiary's estate, could give good

acquittance and may qualify to receive the underpayment. K.S.A. 59-2249

provides in pertinent part as follows:

In the present case, the legal representatives of the estate prior to

their discharge could have applied for the underpayment. Had they done so,

they would have received it and it would have become a part of the

decedent's residuary estate and would have passed to C, the residuary

legatee. There is no reason to prevent payment to C, the residuary

legatee, simply because the legal representatives failed to take timely

action. The Administration will receive the same good acquittance by

paying the underpayment to the residuary legatee, C, in these

circumstances as it would have received had it paid the legal

representatives prior to their discharge

, the residuary

legatee. There is no reason to prevent payment to C, the residuary

legatee, simply because the legal representatives failed to take timely

action. The Administration will receive the same good acquittance by

paying the underpayment to the residuary legatee, C, in these

circumstances as it would have received had it paid the legal

representatives prior to their discharge. It is accordingly held that C qualifies as the "legal representative" of R's estate within the

meaning of section 204 of the Act, and may thus be paid the underpayment

of $538.60 which was due R at the time of her death.