Change in Representative Payee

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Question:

We have a customer that has a representative payee on his account and has his SSI direct deposited. The rep payee has died. The customer has a new payee appointed to his funds through Social Security and has brought the paperwork to us where he has made the change. We are not changing ownership of the account just changing payee names. Would you close the account out or have the new payee sign a name change form or how would you handle this?

Answer:

Making file changes to change the name on the account is not recommended. It is an open invitation to skipping the critical CIP step (the new Rep Payee is a new customer, whether the account is new or not), and doesn't reflect a clean break with the past.

Open a new account, correctly, and move the funds.

First published on BankersOnline.com 4/11/11