Social Security overpayment collections could target families after a beneficiary’s death

ATLANTA (InvestigateTV) — Some Social Security recipients and their families have faced demands to repay thousands of dollars in benefits the agency mistakenly overpaid, sometimes years after the original beneficiary has died.

David Morgan, a retired MARTA bus driver from Georgia, received letters demanding he pay back $20,000 in Social Security overpayments made to his deceased brother, Dennis. The agency threatened to cut David’s own benefits if he did not pay.

“Like anybody, if you stopped somebody’s source of income, what can you do? You can’t pay your bills. My wife and I would be devastated because we still got bills,” Morgan said about the potential impact of losing his benefits.

Morgan served as his brother’s representative payee for nine months before Dennis died at age 58.

Morgan said he notified the agency when his brother died and thought his responsibilities over his brother’s benefits were done.

Social Security records show the overpayments had occurred since 2022, spanning years before Morgan took responsibility for his brother’s benefits.

Widespread problem affects millions

According to a report from the Social Security Administration’s inspector general, the agency made nearly $72 billion in improper payments in 2024, most of which were overpayments.

“Through no fault of their own, we overpay them and then claw back in a rather brutal and summary way 100 percent of their check,” former Social Security Commissioner Martin O’Malley said in March 2024 during testimony before the Senate Committee on Aging.

Semainesh Weldemicael and her family also faced overpayment demands.

The family fled war-torn Eritrea to Georgia and became U.S. citizens.

They rely on Social Security to care for their two mentally disabled adult children but were told they could lose benefits if they do not repay about $4,000 in overpayments.

“I didn’t steal anything. It was the government who allowed us and gave us this. So, it was like a punishment I’m getting for nothing I do,” Weldemicael said through an interpreter.

Agency can pursue relatives for repayment

Social Security’s website explains the agency can seek repayment from living relatives, stating, “If you die before you fully repay an overpayment, we may seek repayment from anyone who receives benefits based on your record.”

Atlanta News First Investigates reached out to Social Security on Morgan’s behalf and he said the agency confirmed it made a mistake.

“It’s already hard enough to try to make a living on a fixed income and when you have no income, that’s fear you could lose everything,” he said.

U.S. Senator Jon Ossoff’s office also intervened and said Morgan is not responsible for the overpayment. Weldemicael’s case was also resolved.

What to do if you receive an overpayment notice

Attorneys who handle Social Security cases advise recipients not to ignore overpayment letters.

If you request a waiver or appeal within 30 days, the agency will not collect money until it makes a decision. If you don’t pay within 30 days of the notice date, Social Security will automatically withhold 50% of your benefit or 10% of your payment each month until the debt is repaid.

In March 2025, Congress introduced the Social Security Overpayment Relief Act, which aims to limit the agency from reclaiming overpayments older than 10 years.