How does social security know when someone dies?

When a Social Security beneficiary dies, Social Security requires that the death must be reported immediately. Usually, if the deceased was receiving Social Security benefits, the benefits are terminated once the death is reported. Social Security allows several parties to report the death of a beneficiary.

In most cases, the funeral director will report the death to Social Security using Form 721- Statement of Death, based on the information provided by the family of the deceased. Ultimately, the surviving family members are responsible for ensuring that the death is reported promptly to Social Security. If Social Security had appointed a representative payee to manage benefits on behalf of a beneficiary who is unable to do so, the representative payee will be responsible for reporting the death when the beneficiary dies.

How to report a death to Social Security

When a Social Security worker dies, the death must be reported as soon as possible. The death can be reported in the following ways:

Funeral director

In most cases, the funeral director reports the death of a deceased beneficiary on behalf of the deceased’s family. Typically, the family will be required to provide the deceased’s information to the funeral director, including the name of the deceased person, age, and Social Security number. The Funeral director will use Form SSA 721 (PDF)-Statement of Death to report the death on behalf of the family.

Deceased person’s family

The family of the deceased individual is responsible for ensuring the death is reported as soon as possible. The family can provide the deceased’s Social Security information to the funeral home, or notify Social Security directly by calling 1-800-772-1213 or visiting the local Social Security office.

Representative payee

If Social Security had appointed a person or organization to manage benefits payments for someone who is unable to do so, that person or organization is responsible for reporting the death when the beneficiary dies. The representative payee can report the death by calling Social Security or visiting the local Social Security office.

When do Social Security benefits stop?

When a person dies, no benefits will be due for the month of death. If the death is not reported immediately and Social Security pays the deceased beneficiary, the benefits must be refunded.

Generally, Social Security pays benefits in arrears, and this means that benefits for the previous month are paid in the current month. Hence, if a person dies in February, and the death is not reported, benefits will be paid in March. However, these payments will need to be refunded, depending on the mode of payment. 

If Social Security made a direct deposit to the beneficiary’s account, ask the bank to refund payments to Social Security. If Social Security sent a check, you should mail the check back to Social Security.

What is the lump-sum death benefit?

Once a death is reported, Social Security will make a lump death payment of $255 to the deceased’s family. If the surviving spouse was staying with the deceased spouse or collecting spousal benefits on the deceased’s records, he/she will receive the lump-sum death benefit. However, if there is no qualifying spouse, Social Security will pay the death benefit to a qualifying child of the deceased beneficiary.

How does Social Security work when a spouse dies?

When a spouse dies, the surviving spouse and divorced spouse may be eligible to receive survivor benefits on the deceased spouse’s record. Typically, the current and former spouses are eligible to receive 100% of the deceased spouse’s benefits if they have attained the full retirement age. However, the surviving spouse and ex-spouse can claim benefits as early as age 60, but the benefits will be reduced by 71.5% to 99%, with the percentage increasing as you approach the full retirement age.

If the surviving spouse remarries after the spouse’s death, it may affect their eligibility for survivor benefits. If the surviving spouse remarries before 60, they become ineligible for benefits. If the marriage ends, the surviving spouse will regain eligibility for benefits. However, if the spouse remarries after age 60, they can continue receiving survivor benefits on the deceased spouse’s record.

Who is eligible to receive survivor benefits?

When you pay Social Security taxes, part of these taxes goes towards paying survivor benefits when you die. This means that your surviving spouse, children, and parents could be eligible to receive payments based on your earnings record.

Spouse

A widow/widower who has reached the full retirement age can receive 100% of the deceased spouse's benefits. Also, a surviving ex-spouse of the deceased worker can claim survivor benefits and receive a similar percentage as the surviving spouse. The spouse/ex-spouse can claim survivor benefits as early as age 60, or 50 if they are disabled, but they will receive reduced benefits.

Children

Minor children of the deceased beneficiary may be eligible for survivor benefits on the deceased parent's record. Also, if the child is age 19 and is a full-time elementary or high school student, they qualify to receive survivor benefits. An eligible child can receive up to 75% of the deceased parent's benefits.

Parents

A surviving dependent parent may be eligible to receive Social Security benefits if they depended on the deceased beneficiary for at least half of their financial support. A single surviving parent can receive up to 82.5% of the deceased’s benefits; if there are two surviving parents, they can collect up to 75% of the deceased’s benefits each.