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There are many things to do when a loved one passes.
In addition to the emotional aspect of managing death, there are financial things – which would include any social security benefits that the deceased received.
You may be wondering how the government knows not to send the monthly money anymore or if a spouse or a dependent can survive some kind of payment.
Social security rules can be complicated. However, the conclusion is that the benefits of the deceased stop at death. For survivors, how you get benefits – or if you qualify – depends on several factors (more on this below).
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First of all, however, it is important that the social security administration be alerted as soon as possible after the person’s death.
In most cases, funeral homes notify the government. There is a form available that those companies use to report death.
“The person who serves as the executor [of the estate] or the surviving spouse can also turn to Social Security, “said certified financial planner Peggy Sherman, senior advisor at Briaud Financial Advisors in College Station, Texas.
There are a few things to keep in mind. For a start, a person should not receive social security benefits for the month of his or her 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 for that month – which would have been paid in February – should be returned if received. If the payment is made by direct deposit, the bank holding the account should be notified so that it can return the benefits sent after the person’s death.
It may come as no surprise that using someone else’s benefits after they die is a federal crime, whether or not the death has been reported. If the SSA receives notification that fraud may occur, the charge is reviewed and will potentially warrant a criminal investigation. To combat duplication, the agency combines records with other government entities to identify unreported deaths.
Regarding survivors ‘benefits: If a spouse or eligible dependent already received money based on the deceased’s record, the benefit will automatically be converted into survivors’ benefits when the government notifies the deceased, Sherman said.
“For all other cases, the surviving spouse will need to call Social Security and schedule an appointment to claim survivor benefits,” Sherman said. “You can’t do this online.”
If the widow or widower has reached their own full retirement age, they can get the full benefit of the deceased husband, Sherman said. They can claim reduced benefits from the age of 60, as opposed to the older standard age of 62.
If the survivor qualifies for social security according to his own data, he can switch to his own benefit at any time between the ages of 62 and 70, if the payment is higher.
An ex-spouse of the deceased may also be able to claim benefits as long as they meet certain specific qualifications.
Benefits may also be available for the minor children of a person who has died, as well as for a surviving spouse who is caring for children.
Finally, on the death of a social security beneficiary, survivors are generally given a lump sum of $ 255.