I have been caring for in my home 2 boys for almost 4 yrs ,who lost their mother and sadly their father turned to drinking. 2 yrs ago their father wrote a letter giving me permission to take care of the boys medial and educational needs so i could properly care. Which i have done as though these children where my own . Recently a fed agent contacted me informing me the grandmother was receiving survivor benes for the boys . I was told i was owed an underpayment for the 2yrs they proved that 1of the boys was with me of aprox 15,000. I went down with the 1 boy who turns 18 in nov and became payee on 9/23/10 on 9/25/10 the father pulled both boys outta my home while i was at docs i came home, house rummaged and all their belongings {i have bought for them} gone the father convinced the boys i only had taken care of them for $ and if they left my home and picked another payee that i would not receive this underpayment, they would . It was my understanding from what the agent said that, that $ was for what i had already put out caring for the 1 boy who is still a minor. where does this underpayment that the grandmom has to pay back go ?
Underpayment for unappointed representative payee
This is a relatively complex situation which may require outside assistance with.
I would say your case would bear more weight if you were legally appointed guardian for the boys. If you didn't have legal custody of the children, legally underpayments may be due to those who "legally" were responsible for the boys even though they may not have cared for the boys.
For example, I found this case which id different, but along the lines of your case :
https://secure.ssa.gov/poms.nsf/lnx/1501505048
Texas law holds that a natural parent has a right of inheritance despite equitable adoption because equitable adoption does not terminate the natural parent's rights. Therefore, a natural parent may inherit any undistributed title II underpayment due a deceased child who was determined to be equitably adopted by a beneficiary, also deceased, as long as the parental rights of the natural parent have not been terminated.
The relevant determination may vary from state to state, so outside assistance is advised.