Many couples use joint accounts to plan finances together. That makes it convenient when Social Security checks arrive, but it can get a little complicated when someone passes away.
Sometimes, Social Security will require that you send back the money received after a beneficiary passed away, even if the deposits cleared.
Why a Social Security payment may have to be returned
When someone passes away, you may need to return their Social Security benefits. “If the deceased was receiving Social Security benefits, you must return the benefits received for the month of death and any later months,” per the Social Security Administration. “If the payment was received by direct deposit, contact the bank or other financial institution.”
The administration recommends giving the deceased’s Social Security number to the funeral director, who typically reports the recipient’s death to the administration. It also says to not cash checks of the deceased beneficiary and return them to Social Security as soon as possible.
What to do when the money is deposited
If the money is deposited into your account, do not withdraw or spend it. Even though the funeral director usually reports the death to Social Security, you should confirm that the agency has been notified and call promptly if necessary.
You can also have your bank or credit union return any payment from Social Security that occurs after the death. The Treasury can reclaim federal benefit payments sent after a recipient’s death. The bank may end up freezing the deceased’s account and removing money from the account if an extra Social Security check was processed.
Money survivors may still be entitled to receive
A deceased recipient’s family members may still be entitled to some Social Security benefits. A qualifying surviving spouse or child may be eligible for a $255 lump-sum death payment, and survivorship benefits for eligible spouses can range from 71.5% to 100% of the deceased spouse’s benefit. The amount depends on how old the surviving spouse was when they claimed benefits.
You must call 1-800-772-1213 to apply for survivor benefits, since it’s not something you can do via an online application. However, you cannot collect your benefit and the survivor benefit. Social Security will review both benefits and give you the higher of the two each month.
