This Is How Social Security Benefits Are Handled At Death
- Using someone else’s Social Security benefits after they die is a federal crime.
- Funeral homes often alert the government when someone passes away.
- Depending on the situation, survivors benefits may be available.
There is a lot to deal with when a loved one passes away.
On top of the emotional aspect of handling death, there is the financial stuff which would include any Social Security benefits the deceased was receiving.
You may wonder 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. Yet the bottom line is that the decedent’s benefits stop at death. For survivors, how to get benefits or whether you qualify depends on several factors .
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First, though, it’s important for the Social Security Administration to be alerted as soon as possible after the person dies.
In most cases, funeral homes notify the government. There’s a form available that those businesses use to report the death.
“The person serving as executor or the surviving spouse can also call Social Security,” said certified financial planner Peggy Sherman, a lead advisor at Briaud Financial Advisors in College Station, Texas.
There are a couple of things to keep in mind. For starters, a person is due no Social Security benefits for the month of their death.
The Basics Of Social Security
First off, every eligible worker can begin receiving Social Security benefits at age 62, but youll get a reduced monthly payment if you dont wait until youre at full retirement age. Your monthly payment will depend a few things, including your income throughout your working years, how much you paid into the Social Security system and at what age you claim benefits. Benefits are adjusted yearly based on the cost of living.
Full retirement age depends on the year you were born:
- If you were born between 1943 and 1954, full retirement age is 66
- If you were born between 1955 and 1959, full retirement age is between 66 and 67, depending on your birth year
- If you were born after 1960, full retirement age is 67
The Social Security website provides a calculator to help individuals understand how much their benefit will be reduced if they collect early. For example, if you were born in 1960 and wanted to collect as soon as you hit age 62, youd receive 70% of your full retirement age payout. But if you waited until age 64 youd get 80% of the full benefit.
By delaying the receipt of your benefits past full retirement age, youll earn even more than the full benefit for every year after full retirement age and before you hit age 70, youll collect 8% more each year.
- If youre full retirement age is 66, you can earn up to 132% of your full benefit by waiting until youre 70
- If youre full retirement age is 67, you can earn up to 124% of your full benefit by waiting until youre 70
How Do You Apply For Survivor Benefits
Because individual circumstances can vary widely, it is not possible to apply for survivor benefits online. However, you can apply over the phone or by appointment at your local Social Security office. Current requirements and contact information are always available on the Social Security Administration website.
Applying for survivor benefits may require you to submit specific documents, such as a death certificate, marriage certificate, proof of citizenship, or a divorce decree, so rounding them up beforehand will help expedite the process.
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How To Stop Social Security Check Payments
The SSA can not pay benefits for the month of a recipients death. That means if the person died in July, the check received in August must be returned. Find out how to return a check to the SSA.
If the payment is by direct deposit, notify the financial institution as soon as possible so it can return any payments received after death. For more about the requirement to return benefits for the month of a beneficiarys death, see the top of page 11 of this SSA publication.
Family members may be eligible for Social Security survivors benefits when a person getting benefits dies. Visit the SSA’s Survivors Benefits page to learn more.
If You Haven’t Applied For Retirement Benefits Yet
Spouses who are eligible for both the survivor benefit and the retirement benefit based on their own work record can maximize their total benefits by taking them in the most advantageous order. The Social Security Administration explains how this works:
If you are also eligible for retirement benefits, but haven’t applied yet, you have an additional option. You can apply for retirement or survivors benefits now and switch to the other benefit later.
The right order for you will depend on the size of each benefit. If both payouts currently are about the same, it may be best to take the survivor benefit at age 60. It’s going to be reduced because you’re taking it early, but you can collect that benefit from age 60 to age 70 while your own retirement benefit continues to grow. Then you can collect your own benefit starting at age 70 when it maxes out.
Conversely, if your own benefit is small compared to the survivor benefit , you could take your own benefit at age 62, which is the earliest age at which you’re eligible. Then, at age 66, you could switch over to the survivor benefit. However, the survivor benefit would be reduced since it was taken early or before full retirement age.
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Calculating The Benefit Amount
Figuring out how much youll receive in Social Security survivor benefits requires a little math. The simple explanation is that at the death of the first spouse, surviving spouses receives the higher of their own benefit, or the benefit of the deceased. But this simple explanation doesnt consider what age the deceased filed for benefits, if they did at all, and when the surviving spouse decides to file.
If the Deceased DID NOT File for Benefits
If the deceased spouse never filed for benefits, but died on or before their full retirement age, the calculation is relatively easy. The survivor receives the deceaseds full retirement age benefit, adjusted for the survivors filing age .
If the deceased spouse never filed for benefits, and died after their full retirement age, the survivor receives the deceaseds benefit in the same amount it would have been on the date of the deceaseds death reduced for the filing age of the survivor. You can see the next chart for more information on age-based reductions that come into play in both cases.
But what if the deceased spouse filed for benefits before he passed away? If this is the case, it could get a little more confusing.
If the Deceased DID File for Benefits
When it doesnt pay to delay
When Is It Worthwhile To Continue Working While On Social Security For Higher Benefits
In the end, whether or how beneficial it is to continue to work while on Social Security in order to generate higher Social Security benefits in the future depends heavily on two factors: what income replacement tier the Social Security recipient will be in and what the existing earnings history already was . Similar to the consequences of retiring early , the consequences vary depending on where the individual is in the AIME calculation.
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Chapter : Maximizing Your Benefit
Many people ask can I collect my deceased spouses social security and my own at the same time? In fact, you cannot simply add together both a survivor benefit and your own retirement benefit. Instead, Social Security will pay the higher of the two amounts.
Did you Know?
If the benefit you would receive as a survivor is higher than your own earned benefit, Social Security pays the higher of the two amounts not the two combined.
While it can seem unfair to not be able to claim both full benefits, there are claiming strategies you can use to maximize the total Social Security benefits you receive. This includes switching from one benefit to the other. See an example from one of our users directly below.
Making the right decision on how to maximize your own benefits depends on how much your own retirement benefit vs. survivor benefit would be, and how long you think you will be living and needing the money. It also depends on whether youre working.
- If you are already receiving spousal benefits when your spouse dies Social Security will convert your benefit to survivors benefits, which are up to 100% of your late spouses full retirement benefit .
If You’re Already Receiving Retirement Benefits
For those already being paid retirement benefits, they can only apply for benefits as a widow or widower if the current retirement benefit being received is less than the survivor benefit. In other words, they’ll pay you the higher of the two benefits. However, both benefits cannot be combined and taken at the same time.
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Earn Ssa Work Credits In Some Countries
You may not have enough credits from your work in the United States to qualify for retirement benefits. But, you may be able to count your work credits from another country. The SSA has agreements with 24 countries. If you earned credits in one of those countries, they can help you qualify for U.S. benefits.
Documents You Need To Apply
Please select the benefit you will be applying for from the list below to see what information and documents you may need when you apply:
If you don’t have all the documents you need, don’t delay applying for Social Security benefits.
In many cases, your local Social Security office can contact your state Bureau of Vital Statistics and verify your information online at no cost to you. If we can’t verify your information online, we can still help you get the information you need.
Mailing Your Documents
If you mail any documents to us, you must include the Social Security number so that we can match them with the correct application. Do not write anything on the original documents. Please write the Social Security number on a separate sheet of paper and include it in the mailing envelope along with the documents.
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Can My Surviving Spouse Claim My Social Security Death Benefits And Their Own Primary Benefits
Nope. Auxiliary benefits were designed to protect the non-working spouses and children of workers, not to provide extra money to surviving spouses whose work histories make them eligible for benefits on their own record.
A surviving spouse whose age and labor force participation make them eligible for primary Social Security benefits should not expect to receive full Social Security death benefits on top of their own check. The Social Security Administration wants to guard against what it considers excess benefits, so will adjust the benefits of anyone who is eligible for both spousal/death benefits AND primary benefits.
Social Security will pay out the larger of either the spousal/survivor benefits or the primary benefits, but not both. This is known as the Dual Entitlement Rule. So, if you consistently earned more than your spouse and your spouse predeceases you while youre both claiming Social Security, you wont get an income boost because your primary Social Security benefits are greater than the death benefits youre eligible for.
If youre a widow or widower youre eligible to claim death benefits beginning at age 60, or age 50 if youre disabled. You can claim auxiliary benefits while letting your own benefits grow until you reach age 70. Alternatively, you can claim your own benefits beginning at age 62 and wait until later to claim auxiliary benefits.
How Do I Collect Survivor Benefits
Survivor benefits are Social Security payments to family members of a wage earner who has died. Unlike spousal benefits, the size of the survivor benefits you leave behind changes depending on when you opt to collect your individual benefits. As a result, if you take your individual benefits early, youre locking in lower lifetime income not only for yourself, but also for your spouse should you die before him or her. If you delay receiving benefits to earn a higher PIA, that amount is eligible to pass on to your surviving spouse.
As a spouse, you may be entitled to survivor benefits if youve been married for at least nine months at the time of your spouses death. You can collect survivor benefits as young as age 62, but if you do, those benefits will be reduced. Children and parents may also be eligible for survivor benefits, but only under specific circumstances.
Survivor benefits would replace benefits youre already receiving if the survivor benefits are of higher value. Additionally, if you receive a pension based on work without paying into Social Security, your survivor benefit may be reduced accordingly.
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Advanced Filing Strategies For Survivors
In early 2018 the Office of the Inspector General released a report with some shocking news. 82% of widows and widowers who are receiving Social Security survivors benefits are actually entitled to a higher monthly benefit payment. The only problem is, the SSA never made them aware of this. This affected an estimated 9,224 widows and widowers 70 and older who could have received an additional $131.8 million in Social Security benefits had they been told they could delay filing for retirement benefits until reaching age 70.
Theres no need to wait for them to tell you about itlets jump in right now.
Prior to 2016 there were several popular Social Security filing strategies that would allow an individual to file for certain benefits and later switch back to their own benefits. The benefit of this was to allow their own benefits to grow with the 8% per year delayed retirement credits However, law changes in 2016 did away with many of the Social Security filing strategies. The one that remains belongs to survivors and it can be powerful. Heres how it works.
If you have a benefit based on your own work history, it could make sense to file for a reduced survivors benefit as early as 60. While you are drawing your survivor benefit, your own benefit grows every month you delay filing for it. Generally, these adjustments could grow your benefit by 77% from age 62 to age 70. At age 70, you simply switch back to your own benefit .
Minor Or Child With A Disability
If you are the unmarried child under age 18 of a worker who dies, you can be eligible to receive Social Security survivors benefits. You can also be eligible, if you are up to age 19 and attending elementary or secondary school full time.
Besides the worker’s natural children, their stepchildren, grandchildren, step grandchildren, or adopted children may receive benefits under certain circumstances.
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What Is A Social Security Card
Your Social Security card is an important piece of identification. You’ll need one to get a job, collect Social Security, or receive other government benefits.
When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.
How To Claim Survivors Benefits
To begin receiving survivors benefits, you must make a claim with the Social Security Administration. Survivors benefits claims may not be made online. You can start the claims process over the telephone, 1-800-772-1213, or go to your local Social Security office. Making an appointment may reduce your wait time.
The death should be reported to the Social Security Administration as soon as possible. In many cases, the funeral home can make that notification. You will have to provide the funeral home with the deceaseds Social Security number.
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Benefits Available To Children & Parents
Eligible spouses arent the only ones that can receive Social Security survivor benefits. Dependent children and parents may also be entitled.
If you want to learn more, here are the best resources on the topic:
Childrens Benefits:
Social Security Benefits for Dependent Parents -Article by Mike Piper, the author of Social Security Made Simple.
Who Qualifies For Survivor Benefits
Family members who qualify for survivor benefits include:
- A widow or widower aged 60 or older
- A surviving divorced spouse
- A widow or widower who is caring for the deceaseds child under age 16 or who has a disability, regardless of age
- An unmarried child of the deceased who is younger than age 18, or age 18+ with a disability that began before age 22
- A stepchild, grandchild, step grandchild, or adopted child
- Parents aged 62 or older who were dependent on the deceased for at least half of their support
Surviving spouses must also have been married for at least one year to be eligible to receive the spouses benefits unless the surviving spouse is the parent of the deceased spouses child.
Note that even if youre divorced and remarry after age 60, the marriage will not affect your eligibility for survivor benefits.
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