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When a loved one who receives Social Security benefits has passed away, you may wonder how the government knows to stop sending that monthly money.
Or, maybe there is a surviving spouse or dependent who has relied on the income and is wondering if some kind of payment can continue.
Although rules for social security can be complicated, the conclusion is that the benefits of the deceased cease at death. For survivors, it depends on several factors how to get benefits – or whether you qualify -.
First, it is important that the Social Security Administration is alerted as soon as possible after the person dies.
In most cases, funeral homes notify the government. There is a form available that the businesses use to report the death.
“The person acting as executor [of the estate] or can extend long-term social security, “said certified financial planner Peggy Sherman, a senior adviser at Briaud Financial Advisors in College Station, Texas.
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There are a few things to keep in mind. To begin with, there are no social security benefits to a person for the month of their death.
“Any benefit paid after the month of the person’s death must be repaid,” Sherman said.
With social security, each payment represents the benefits of the previous month. So if someone dies in January, the check for that month – which is paid in February – must be returned if received. If the payment is made by direct deposit, the bank owning the account must be notified so that it can return the benefits sent after the person’s death.
It is perhaps no surprise that using the benefits of someone else after their death is a federal crime, regardless of whether the death was reported or not. If the Social Security Administration receives notice that fraud may occur, the allegation will be reviewed and may justify a criminal investigation. To combat duplicity, the agency is compiling records with other government agencies to identify unreported deaths.
What benefits are available to survivors: if a spouse or qualifying dependent already receives money based on the deceased’s record, the benefit will automatically be converted to survivor benefits when the government takes notice of the death, Sherman said.
“For all other cases, the surviving social security will need to call and make an appointment to apply for benefits for survivors,” Sherman said. “You can’t do it online.”
If the widow or widower has reached their own full retirement age, they can take full advantage of the deceased spouse, Sherman said. They can already apply for reduced benefits around the age of 60, as opposed to the standard earliest age of 62 years.
If the survivors qualify for social security on their own record, they can always switch between 62 and 70 years to their own advantage if their own payment would be more.
An ex-spouse of the deceased can also claim benefits, provided they meet certain specific qualifications.
For minor children of a person who has died, benefits may also be available, as well as for a surviving spouse caring for the children.
Finally, after the death of a Social Security recipient, survivors are usually paid a lump sum of $ 255.