This is how social security benefits are administered on death

There is a lot to do when a loved one passes away.

In addition to the emotional aspect of dealing with the death, there are the financial aspects – which would include any Social Security benefits the deceased was receiving.

You might be wondering how the government knows it needs to stop sending this monthly money or if a surviving spouse or dependent can maintain some kind of payment.

Social security rules can be complicated. However, the main thing is that the benefits of the deceased stop at death. For survivors, how to get benefits – or whether you qualify – depends on several factors (more details below).

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First of all, however, it is important that the social security administration is alerted as soon as possible after the person’s death.

In most cases, funeral homes notify the government. There is a form that these companies use to report the death.

“The person acting as executor [of the estate] or the surviving spouse can also call Social Security, ”said certified financial planner Peggy Sherman, senior advisor at Briaud Financial Advisors in College Station, Texas.

There are several things to keep in mind. To begin with, a person is not entitled to any social security benefits for the month of their death.

“Any benefit paid after the month of the person’s death must be reimbursed,” Sherman said.

With Social Security, each payment received represents the benefits of the previous month. So if a person dies in January, the check of the month – which would be paid in February – would have to be returned if received. If the payment is made by direct deposit, the bank that holds the account must be notified so that it can reimburse benefits sent after the person’s death.

It is perhaps not surprising that using someone else’s benefits after death is a federal crime, whether death has been declared or not. If the SSA receives a notice of fraud, the allegation is investigated and potentially warrants a criminal investigation. To combat duplicity, the agency matches records with other government entities to identify unreported deaths.

Regarding the benefits available to survivors: If an eligible spouse or dependent was already receiving money based on the deceased’s record, the benefit will automatically convert to survivor benefits when the government is notified of the death, Sherman said.

“For all other cases, the surviving spouse will need to call Social Security and make an appointment to apply for survivor benefits,” Sherman said. “You can’t do this online.”

If the widow or widower has reached their own full retirement age, they can receive full benefits from their deceased spouse, Sherman said. They can claim reduced benefits as early as age 60, unlike the earliest standard age for claiming 62.

If the survivor qualifies for Social Security on his own record, he can switch to his own benefit at any time between 62 and 70 if that payment is greater.

An ex-spouse of the deceased might also be able to claim benefits, provided he meets certain specific conditions.

For minor children of a deceased person, benefits may also be available, as well as for a surviving spouse caring for the children.

Finally, on the death of a Social Security beneficiary, survivors typically receive a lump sum payment of $ 255.