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There is a lot to do when a loved one dies.
Apart from the emotional aspect of dealing with death, there are the financial things – which include the benefits of social security that the deceased receives.
You may be wondering how the government knows to stop sending that monthly money, or whether a surviving spouse or dependent can keep some sort of payment going.
Social security rules can be complicated. The bottom line, however, is that the benefits of the deceased stop at death. For survivors, the dependence on benefits – whether you qualify – depends on several factors (more on this below).
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First, however, it is important that the Social Security Administration is warned as soon as possible after the person’s death.
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 also extend long-term social security, “said certified financial planner Peggy Sherman, a senior advisor at Briaud Financial Advisors in College Station, Texas.
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 should come as no surprise that using the benefits of someone else after they have died is a federal crime, regardless of whether the death was reported or not. If the SSA 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 could switch between 62 and 70 years old to their own advantage if the payment were 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.