Direct deposit of a beneficiary’s or recipient’s benefits into a trust or trust account
that does not fit the description in Part A of this section usually will constitute
an assignment of benefits because the grantor — whose benefits are at issue — usually
does not retain legal ownership and control of the benefits after they are deposited
into the trust or trust account. Most importantly, the grantor usually is not the
Therefore, direct deposit into a trust or trust account — other than a Totten trust
or similar account that fits the description in Part A of this section — generally
may not be approved. Consult with your regional trust lead, as appropriate, for an
evaluation of the trust or (trust) account at issue.
For more information about assignment of benefits, refer to SI 01120.200G or SI 01120.201J.