The loss of a loved one is a difficult time, and there are many pieces to finalize, from funeral services to canceling or changing financial accounts.
One piece that may be overlooked is Social Security, said Jeff Volzke of Volzke Funeral Home in Seward.
Social Security benefits are paid a month in arrears. So, if a recipient dies after their payment date, that amount is still due to the recipient or their family. If there is a surviving spouse, it automatically goes to them. They should also check with the Social Security Administration to make sure they’re receiving the higher payment.
When that spouse dies, however, there could be a final payment to other survivors. According to the SSA form SSA-1724 website, the payment would go to, in this order: the surviving spouse who lived with the deceased or was entitled to a benefit on the same record; children who were entitled to a benefit on the same record; parents who were entitled to a benefit on the same record a surviving spouse who does not meet the first qualifications; children who do not meet the first qualifications; parents who do not meet the first qualifications; and the legal representative of the estate.
A recipient must live past their payment date for the survivors to be eligible to receive the payment.
“Social Security won’t pay a deceased account,” Volzke said. “The U.S. Treasury won’t pay, even if you’re entitled. When the bank notifies Social Security, it goes back to Treasury.”
The person’s survivors must submit form SSA-1724-F4 to apply for that final payment, Volzke said.
For example, if Person X receives their Social Security benefits on the 15th of the month and dies on the 17th, that month’s payment should be made. If Person X dies on the 13th, however, the benefit will not be paid.
This is not the same as the one-time death benefit that Social Security pays, Volzke said.
Volzke said survivors should check with the Social Security Administration to see if final payments for their loved one(s) are available. A letter is usually sent to the survivors about six weeks after the death notification, but it may get overlooked, he said.
“It’s worth it just for peace of mind,” he said.
