Last Update: 12/9/2024 (Transmittal I-1-108)

HA 01120.008 Trust or Escrow Accounts

Renumbered from HALLEX section I-1-2-8

Claimants may deposit money into previously established trust or escrow accounts to ensure the payment of all or part of the representative's fee, provided the following conditions are met:

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  The claimant willingly enters into the trust or escrow agreement and willingly deposits the money in the trust or escrow account;

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  None of the money in the account is paid to the representative or entity unless and until the Social Security Administration (SSA) has authorized a fee and then only in an amount up to, but not exceeding, the authorized fee; and

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  The representative or entity promptly returns any funds in the account in excess of the authorized fee.

See SSR 82-39 for more information about establishing trust or escrow accounts.

If a claimant agrees to deposit money into a trust or escrow account at their representative's request,

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  The representative must disclose the amount of money held in the trust or escrow account at the time they file a fee agreement or fee petition;

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  The representative or entity may not pay funds held in a trust or escrow account to themselves until they receive notice of the fee authorization; and

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  The representative or entity must promptly return any funds in the trust or escrow account in excess of the authorized fee amount.

SSA will not honor a request to deposit a claimant's first check or any other monies directly into a trust or escrow account or to any account that does not belong to the claimant. Refer to section 207 of the Social Security Act.

Refer to Program Operation Manual System (POMS) GN 03920.025 C. for information on how funds in a trust or escrow account affect the amount SSA withholds and the amount of direct payment an eligible representative or entity receives.

If Office of Hearings Operations (OHO) or Office of Appellate Operations (OAO) personnel have questions about the trust or escrow agreement, including whether the representative or entity has returned to the claimant funds in the account in excess of the authorized fee, OHO or OAO staff may request that:

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  The representative or entity, through its point of contact (POC), provide SSA with a copy of the trust or escrow agreement, including any amendments to the agreement; or

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  The representative or entity's POC provide proof that the funds in the account in excess of the authorized fee have been returned to the claimant.

OHO or OAO personnel who suspects that a representative or entity is knowingly charging, collecting, retaining, or making any arrangement to charge, collect, or retain, any fee for representational services in violation of an applicable law or regulation, should refer to Hearings, Appeals, and Litigation Law (HALLEX) manual HA 01120.081 for information on referring an alleged fee-related violation.