Yes, and we in fact recommend a policy of immediately freezing any social security payments attributable to a recipient who has died. It is important that your account agreements authorize your institution to freeze these amounts.

As stated in the U.S. Treasury’s Green Book, you are not required to wait for a Notice of Reclamation before returning post-death benefit payments — you may “immediately return all subsequent postdeath benefit payments to the Government Disbursing Office.”

For resources related to our guidance, please see:

• 31 CFR 210.10 (“An RDFI shall return any benefit payments received after the RDFI becomes aware of the death or legal incapacity of a recipient or the death of a beneficiary, regardless of the manner in which the RDFI discovers such information.”)

• Green Book, Chapter 5 (“When an RDFI receives actual or constructive knowledge of the death, it does not have to wait for a Notice of Reclamation. The RDFI can immediately return all subsequent postdeath benefit payments to the Government Disbursing Office.”)

• Green Book, Chapter 5 (“Under no circumstances should an RDFI hold payments indefinitely in a suspense account, or by any other means, nor should payments otherwise be held if any of the conditions apply on when to return a payment. Holding payments may constitute a breach of the RDFI’s warranty for the handling of Federal government ACH payments under 31 CFR 210 and could result in an RDFI’s inability to limit its liability.”)