TN 30 (02-17)
GN 02401.918 Notices Sent to Beneficiaries and Recipients When We Issue Incorrect Payments after Death
A. Notices sent when incorrect payments are issued after death
Because of late notifications of death, we sometimes make incorrect payments that the survivors of beneficiaries or recipients subsequently cash. The Department of the Treasury (Treasury) can reclaim incorrect payments only when made within 12 months to the day of the last incorrect payment. See example of reclamation period in GN 02401.917D.
We will pursue recovery of incorrect payments issued outside the Treasury reclamation period using Limited Payability Notices per NL 03001.000. These notices are available in the Document Processing System (DPS).
B. Identifying the endorser of an incorrect payment
Whenever it is possible, obtain the name, address, Social Security Number (SSN), or any other information that identifies the endorser of an incorrect payment after death. Then send a letter to request repayment. If information is limited, address the letter to the deceased's estate.
C. Request for repayment of incorrect payment
When we issue incorrect checks after the death of the beneficiary or recipient, release the notice requesting repayment of funds from the spouse or other endorser. The “Lim Pay – Request for Repayment – Initial & FU” notice is available in the Document Processing System (DPS).