Losing a loved one is incredibly challenging, and understanding Social Security death benefits can alleviate some financial stress during this difficult time.
Survivors often have questions about what happens to Social Security payments after a death. Here’s an important point: Social Security payments are not prorated. When an individual passes away, any payment received for the month of their death has to be returned. For instance, if someone passes in July, any payment received in August covering July’s benefits must be returned to the Social Security Administration (SSA).
Ensuring that accounts are managed properly following a death is critical to preventing confusion. For households where payments are made via direct deposit, the bank takes on the responsibility of returning the funds once the death is reported. This might lead to complications if the deceased spouse was the account holder.
Protecting Finances After a Loss
Financial expert Robert Maturo from Tucson Federal Credit Union provides a crucial tip: consider making your spouse a joint account holder. This step allows the surviving spouse to retain access to funds, even in the event that the account is temporarily frozen due to the death. If the account is not joint, the survivor may lose access for weeks, leading to unexpected financial strains.
- Joint Accounts: Ensures access to funds during financial transitions.
- Non-Joint Accounts: May result in delays and locked funds until resolved legally.
The $255 Lump-Sum Death Payment
Another important aspect is the Social Security death benefit, which includes the option to apply for a one-time $255 lump-sum death payment. This is designed to help cover funeral expenses and other costs associated with death. To qualify for this, survivors need to file form SSA-8 within two years of the death. The application process entails submitting important documents, including:
- Death certificate
- Proof of relationship (such as marriage certificate)
- Social Security numbers of the deceased and applicant
Applications for the death benefit can be submitted online at [SSA.gov](https://www.ssa.gov) or by calling 1-800-772-1213. Understanding these details ensures that survivors do not miss out on available assistance.
Beware of Social Security Scams
In addition to understanding Social Security death benefits, being vigilant about scams is crucial, particularly for vulnerable populations such as the elderly. Reports suggest that scammers often impersonate officials from the Social Security Administration. Such fraudulent calls can be alarming and may push victims into divulging personal information.
Here are key steps to avoid falling victim to these scams:
- Verify Incoming Communications: Remember, SSA will never demand payment via gift cards or cryptocurrency.
- Do Not Share Personal Information: Avoid giving out Social Security numbers or bank details unless you've initiated the contact.
- Ignore Unknown Callers: Let unknown numbers go to voicemail. If it's legitimate, the caller will leave a message that you can verify.
- Report Suspicious Activity: If a scam is suspected, report it to the SSA or local authorities immediately.
Taking Action Against Scams
In the event of receiving an unsolicited call, reacting swiftly is vital. Here's what to do:
1. Hang Up: Cease communication with the suspicious caller immediately.
2. Report the Scam: File a report with the SSA’s Office of the Inspector General at 1-800-269-0271 or online at [oig.ssa.gov](https://oig.ssa.gov).
3. Protect Your Identity: Take proactive measures to safeguard sensitive information post-death.
- Freeze your credit with major bureaus such as Equifax, Experian, and TransUnion, to protect against fraud.
- Regularly monitor your credit reports for unauthorized activities.
- Use services like SSA’s E-Verify to safeguard your Social Security number from misuse.
Understanding and managing Social Security death benefits has both immediate financial implications and long-term benefits for survivors. Simultaneously, remaining vigilant about potential Social Security scams fosters a culture of security, ensuring a seamless transition for families dealing with loss. Being informed equips survivors to navigate the complexities of Social Security efficiently and effectively.