Claiming Rules
Understanding Social Security Benefits with Trust Accounts
Verified against SSA POMS as of September 19, 2026
The short answer
Social Security benefits can be deposited into Totten trusts without assignment issues, as the depositor retains control. However, direct deposit to other types of trusts may be considered an assignment unless specific conditions apply.
Totten Trusts and Direct Deposit
A Totten trust is a tentative trust where the grantor is the trustee of their own funds for the beneficiary's benefit. Direct deposit into Totten trusts is allowed because the depositor retains ownership (GN 02402.060).
GN 02402.060 View source ›Direct Deposit Policy for Non-Totten Trusts
Direct deposits into non-Totten trusts generally constitute assignments of benefits, which are usually not permitted as the grantor does not retain control (GN 02402.060).
GN 02402.060 View source ›Titling and Acceptance of Trust Funds
The account's title indicates its nature, useful for identifying if it's a Totten trust (direct deposit permitted) or another type of trust (direct deposit generally not permitted) (GN 02402.060).
GN 02402.060 View source ›Trust Property and SSI Eligibility
Trusts involving SSI recipients need review to determine if they are resources. This depends on factors like the grantor and beneficiary identities, and if the trust is revocable (ATL 01120.201).
ATL 01120.201 View source ›Residual Beneficiaries in Trusts
Trusts may not be revocable if a residual beneficiary is designated. The specific language required for naming residual beneficiaries varies by state (DAL 01120.200).
DAL 01120.200 View source ›Frequently asked
Can Social Security be deposited into a Totten trust?
Yes, direct deposits into Totten trusts are allowed as the grantor retains control over the account.
What happens if Social Security benefits are deposited into a non-Totten trust?
The deposit is usually seen as an assignment of benefits, which may not be permissible unless the grantor retains control.
How is a Totten trust different from other trusts?
In a Totten trust, the grantor remains the owner and trustee of the account, keeping control over the funds until death.
What is a residual beneficiary in a trust?
A residual beneficiary receives benefits from a trust after a primary event, such as the death of the initial beneficiary.