Social Security Death Benefit: What Survivors Get

The Social Security death benefit most people mean is a one-time lump-sum payment of $255, and that amount hasn't changed in decades. It is not a funeral benefit and it will not cover a funeral, but the monthly survivor benefits sitting behind it can be worth thousands of dollars a year to a widow, widower, or minor child, and those are what families most often miss. Both come from the Social Security Administration, and both have rules worth getting right the first time.

What is the Social Security death benefit?

The formal name is the lump-sum death payment. It is $255, paid once, to one eligible person, when the person who died worked long enough to be insured under Social Security. It is paid regardless of what the funeral cost or whether there was a funeral at all, and you can't sign it over to a funeral home as payment.

Who can receive the $255 lump-sum payment?

It goes first to a surviving spouse who was living in the same household as the person who died. If they were living apart, a surviving spouse can still receive it if they were already receiving Social Security benefits on that person's record, or became eligible for benefits on that record for the month of death. If there's no eligible spouse, it can go to a child who was eligible for benefits on the deceased's record for that month.

There is a hard deadline: survivors must apply within two years of the date of death, and once that passes the payment is gone. Adult children who weren't already receiving benefits, parents, siblings, and estates generally do not qualify, which surprises a lot of families.

Why are survivor benefits the bigger issue?

Monthly survivor benefits can replace a meaningful share of the household income the family just lost, and unlike the $255, they continue. A surviving spouse can generally claim a reduced survivor benefit as early as age 60, or age 50 if they meet Social Security's disability standard, and a full benefit at their own full retirement age, which is 67 for people born in 1962 or later. A surviving spouse of any age can receive benefits while caring for the deceased's child who is under 16 or disabled.

Unmarried children can receive benefits until 18, or 19 if still a full-time elementary or secondary student, and a child disabled before age 22 may qualify indefinitely. Dependent parents aged 62 or older may also qualify. Timing matters a great deal, because a surviving spouse can often claim one benefit early and switch to the other later, so ask Social Security to compare the options on your specific record before you file.

Why must the benefit for the month of death be returned?

Social Security pays benefits in arrears, and a person has to live through an entire month to be due the payment for that month. So the payment that arrives after the death, covering the month the person died, generally has to go back, even if the death was on the last day of the month. If the deposit has already landed, don't spend it; contact the bank and Social Security and let them reclaim it rather than dealing with an overpayment notice later. A surviving spouse's own benefit is a separate matter and continues.

How does Social Security find out about the death?

In nearly every case the funeral home reports it. When you make arrangements, the funeral director asks for the deceased's Social Security number and files a statement of death with the agency, and that report is what stops the monthly payments. Confirm out loud that they've done it, ask for the date it was sent, and verify independently a couple of weeks later, especially if the death happened out of state or was handled by a coroner or medical examiner.

How do you apply for survivor benefits?

You can't apply for survivor benefits or the lump-sum death payment online. Call Social Security at 1-800-772-1213 or make an appointment at a local field office, and do it promptly, because survivor benefits are generally paid from the month you apply rather than backdated to the death. Bring the death certificate, both Social Security numbers, proof of marriage or the children's birth certificates, and the deceased's most recent W-2 or self-employment tax return.

If money is tight right away, say so when you call and ask what the earliest possible payment date would be. And be wary of anyone offering to file these claims for you for a fee, because applying is free and Social Security will walk you through it.