Dealing with Social Security After the Death of A Loved One

When an individual dies, family members will ask, “What do I have to do about Social Security?” 

Here are some points to consider if that individual was receiving Social Security benefits at the time of passing: 

Reporting Requirements

Typically, the funeral director will contact the Social Security Administration to report a person’s death if you give the individual’s social security number to the funeral director. However, family members and the personal representative of the individual’s estate can also report the information directly to the Social Security Administration by calling 1-800-772-1213. Importantly, make sure the Social Security Administration’s records reflect the correct information. 

Survivor Benefits

Surviving spouses, some cases ex-spouses, and children are entitled to different types of survivor benefits: 

Here are some rules to consider: 

• If you are already receiving social security benefits on behalf of a descendent, you are eligible for:
• A one-time survivor benefit of $255 (surviving spouse or children), which can be automatically processed;
• Continuation of benefits – Payments should be changed on its own to survivor benefits. That means no new application is required for benefits and you do not need to go to a local Social Security office. 

• If you are not receiving social security benefits on behalf of a decedent and/or you are receiving your own benefits, you are eligible for: 
• A one-time survivor benefit of $255 (surviving spouse or children), which must be applied for within 2 years of death and is NOT retroactive;
• For new survivor benefits, you will need to submit an application to the local Social Security Administration office. You will go to the local Social Security Administration office and take a certified copy of the death certificate as well as proof of your relation to the decedent such as your birth certificate, marriage certificate, etc. You might be able to make the application over the phone. However, this can be a long, slow process; Social Security Administration calls are often answered by volunteers who pass along your contact information to a representative for call back later. No matter how you apply, be sure to have your banking information available if you want the benefits direct deposited. 

Descendent Benefits and Reclamation

If after weeks of the decedent’s passing, you notice that the decedent’s checking account reflects a direct deposit of a social security payment after the decedent died. What do you do now? 

Security payments are: 

• Retroactive. This means a payment made in August represents the benefit due for July;
• Paid on specific days of the month according to a person’s birthdate and/or the types of benefits received;
• Not pro-rated - In other words, a person is only entitled to the monthly benefit only if she was alive for the full month;
• Subject to automatic reclaim - Monthly benefits that are direct-deposited to a decedent’s bank account will automatically reclaimed if the Treasury Department determines the decedent was ineligible for the benefit. 

Examples

If a dad died on August 10. Social security payment was deposited on August 2. Dad lived for the full month of July so the payment can be kept. If a deposit is made in September (representing the August benefit), the September payment will be reclaimed because dad did not live for the full month of August.

If a mother died mid-July and social security payment was deposited at the beginning of August, mother did not live for the full month of July. Therefore, the payment will be auto-reclaimed. If by chance the daughter or son acted quickly enough to close the account and withdraw the funds prior to the Treasury reclaiming the benefit, you cannot keep the money. Mother was not entitled to the benefit and the government will want it back. You will need to reimburse the government via check sent to your local Social Security office. 

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