Q: I recently took over my 85-year-old mother's finances – with a durable power of attorney for medical and financial matters.
How do I find out whether my mother is receiving a death benefit from my late father's Social Security? He passed away in November 1995.
I've been told she should be receiving something as his surviving spouse. Unfortunately, she is unable to remember whether her monthly check includes benefits from his account.
Every time I try to get information from the Social Security Administration, I hit a wall.
– Kristine G., Citrus Heights
A: Luckily, we broke through. Your mother is most likely receiving "widow's benefits," according to Leslie Walker, regional spokeswoman for the Social Security Administration's San Francisco office.
If your father was receiving $1,000 a month in Social Security benefits, for example, your mother would have been receiving half that amount – $500 a month – as a spouse. After his death, though, she would have been bumped up to $1,000 a month.
On the other hand, "If she was receiving a benefit based on her own work record at the time of her husband's death," Walker said, "we would pay her whichever benefit (his or hers) is higher."
To find out exactly what type of widow's benefit your mother is receiving, you can call Social Security's toll-free number, (800) 772-1213.
You'll need to have your mother's Social Security number handy when you call. And your mother will need to get on the phone, too.
Even though you have a durable power of attorney for her financial affairs, Walker said, the SSA does not recognize it under federal privacy laws. Your mother must confirm that Social Security can release the information to you.
If you feel your mother can no longer manage her own funds, ask to make an appointment at your local Social Security office to be listed as her "representative payee," which means her payments would go to you as her financial caretaker.
More questions? Visit the Web site, www.socialsecurity.gov, which has answers to hundreds of Social Security questions.
Q: I'm a single man, age 82, and am confused with the reverse mortgage I recently completed with Countrywide. I just received a notice from Yolo County, noting that a party I'd never heard of was filed as the new trustee for my house, replacing my name on the deed.
Nothing in any of the information I received from the AARP, Countrywide or HUD said I would lose ownership of my house. I can't find anything in the closing documents that indicates a change in ownership, so I'm confused. Can you explain?
– Name withheld, Davis
A: Your confusion is understandable, given the complexity of loan documents.
And Victoria Barnes, who sees plenty of reverse mortgages at the Yolo County Clerk-Recorder's Office, said concerns like yours are common. "The documents are confusing. They're not worded for lay people," she said.
What you're probably looking at is a "deed of reconveyance," which is a document showing that your original lender has been paid off and your reverse mortgage is held by a new trustee.
"A change of trustee is standard practice," said Tom Pool, spokesman for the state Department of Real Estate. "Any time you get a new mortgage loan, you get a new trustee, typically a title or escrow company."
The name on the document might be unfamiliar, but it doesn't signify a change of ownership of your home. Under a reverse mortgage, you're still the home's owner, but you're withdrawing monthly payments based on your age and your home's equity.
The only document that might be worrisome is if you received a "grant deed" or "quitclaim deed" for your home that shows someone else's name, not yours.
To completely put your mind at ease, call a real estate professional you trust to review your documents. You can also contact your county clerk-recorder's office to explain what's on file with your property deed.
For more information on reverse mortgages, visit AARP's Web site, www.aarp.org
Have a personal finance question? The Bee's Claudia Buck can be reached at (916) 321-1968 or via The Sacramento Bee; P.O. Box 15779; Sacramento, CA 95852.
