The death of a family member can be a traumatic time for the individual’s surviving family members. Even when the death is expected (due to old age or failing health), the surviving family members often are not emotionally or financially prepared for the death of their loved one. There are many expenses that occur as a result of the death, including funeral expenses and medical bills not covered by insurance.
For those individuals entitled to receive Social Security benefits, the decedent’s estate may be entitled to a one-time lump-sum death benefit of $255. This one-time death benefit can be paid upon the death of an individual, even if the decedent was not receiving Social Security retirement or disability benefits at the time of his or her death. The lump-sum death benefit is limited to the following categories of individuals: (i) a spouse who was living with the deceased individual at the time of his or her death; (ii) a spouse who, in the month of death, is eligible for certain Social Security benefits based upon the decedent’s work record, vis-a-vis the length of time that the deceased worked; or (iii) a child who, in the month of death, is eligible for a Social Security benefit based on the worker’s record. If no spouse or child meeting these requirements exists, the deceased’s estate will not be entitled to receive the lump-sum death benefit.
In the past, the lump-sum death benefit could be paid directly to funeral homes for funeral expenses. However, recent changes to the law have ended this practice. As a result, the decedent’s family member or representative of the estate must advise the Social Security Administration that the decedent has passed away. Thereafter, the family member or representative of the estate can request an appointment at the local Social Security office to determine if the decedent was eligible for this lump-sum death benefit.
The telephone number for the Social Security Administration is 1-800-772-1213.
While this benefit may be modest, any amount will help with the expenses associated with the death of an individual, particularly when the deceased and/or his or her family did not properly anticipate such expenses.
— Andrew Berenson