Social Security Switching to All-Electronic Payment System

Social Security Switching to All-Electronic Payment System

No more paper checks in the mail. Starting March 1, nearly everyone who receives Social Security must switch to the government's new electronic payment system. Beneficiaries will be able to have their checks directly deposited into their bank account or put on to a debit card.

The government is switching to electronic payments in order to save money and to provide a more reliable method of delivering payments. The move to paperless payments will save the government close to $1 billion dollars over the next 10 years. It also eliminates the problem of checks that get lost in the mail or are delayed due bad weather.

Currently, around 93 percent of payments are made electronically, but about 5 million checks are still being mailed each month. If you are among those who haven't converted to electronic payments, the following are your options:

You can have the checks deposited directly into your bank account. This option allows flexibility with withdrawals and you will be subject to the bank fees and limits you already have in place.


If you can't afford a regular checking or savings account, you may be able to open a special low-cost bank account called an electronic transfer account (ETA). ETA fees are low and you are allowed four free withdrawals a month. However, not a lot of banks have joined the ETA program.

You can have your payment put on a Direct Express debit card. The debit card does carry some additional fees if you are planning to withdraw cash. You get one free withdrawal a month and then a $0.90 fee (or more depending on the bank) applies every time you make a subsequent withdrawal that month. You can also use the card like a MasterCard to make purchases directly without fees.

Some individuals are exempted from the requirement to switch to paperless payments. If you are over age 90, live in a remote area that doesn't have electronic payment options, or have a mental impairment that doesn't allow you to manage finances, you may not have to switch to an electronic payment system.

To make the switch, call 1-800-333-1795 or visit www.GoDirect.org.


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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

When In Doubt…Don’t

When in Doubt...DON'T

We all run into ethical questions. As the law office “elder” I am the go-to guy for ethical questions for my associate attorneys, my law school interns and my clients. My answers are often predicated on legal rules of ethics or case-law or past experience but most of the time the phrase: “When In Doubt, Don’t!” covers the situation. Our common sense and our gut reactions usually supply good answers.

One problem comes up often in an elder-law practice. We receive a call from a relative of someone who is receiving State or Federal assistance. We’ll call that person the recipient and the caller the relative. Recently, a relative called because her sister was about to receive a bequest of more than $20,000 from a deceased parent. The recipient was receiving state housing assistance and other benefits. The relative wanted to take the money for the recipient and keep it separately for the recipient’s benefit without disclosing the bequest to state authorities. Another case was reported in Elder-law News this week. In that case, the recipient received State Supplemental Security Income (SSI), Medicaid and housing assistance. Her aunt was giving the recipient $10,000 per year as part of the aunt’s estate planning. Her sister had the recipient endorse the check to her so that she could set the money aside for the recipient’s benefit.

The result of such actions could be fines, penalties and loss of the benefits. In both cases, the relative knew instinctively that the transfer of the money was not proper. There are legal means to accomplish the goal of assisting the recipient. Certain allowable items can be purchased and it might be wise to make those purchases, be disqualified for a month and then be qualified in the next month. Another option is a special needs trust established by the donor, her parents, or the court. This also might cause a month’s disqualification but in the long run the recipient will be better off if we all follow our honest instincts.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.