On a Social Security Rep Payee account, the Rep Payee passed away earlier in the year. The Social Security payments stopped after the Rep Payee's date of death; however, there are funds remaining in the account. Family members of the payee and beneficiary were aware of the account and have inquired with us about the account. While we couldn't give them any information on the account, we encouraged them to visit the Social Security Office to inquire about having a new Rep Payee appointed. We are not heard from them or Social Security.

When a Rep Payee dies, should the bank be proactive and contact Social Security and/or return any remaining funds to them, or does the bank wait until either Social Security requests the funds or someone brings in paperwork showing a new Rep appointed?

It's not your job to provide legal advice to the family. Your hands are tied until you receive something from Social Security. The best you can do is refer anyone inquiring to the social security website which has FAQs, the Rep Payee Guide, and other resources that may help them.

https://www.ssa.gov/payee/index.htm?

The funds belong to the beneficiary. You do not return them. They stay in the account until a new Rep Payee comes forward with paperwork or you end up escheating the funds to the state.