What Happens to My Social Security After I Die?

For many Washingtonians, Social Security serves as their primary source of retirement income. But what happens to your Social Security benefits after you die? Can you pass them on to your spouse or children like you would a private retirement account?

The short answer to that question is “maybe.” Social Security only pays you retirement benefits while you are still living. However, if you leave a surviving spouse, ex-spouse, child, or parent, they may be entitled to certain benefits after your death.

Here is a brief rundown of how this works:

When Do Retirement Benefits Stop?

Social Security pays retirement benefits on a monthly basis. The way this works is that each month, you receive a payment for the previous month’s benefits. You must be alive for the entire month to receive benefits. Once you die, the retirement benefits stop, and your estate cannot keep any payments made for the month you died.

For example, let’s say Helen was a 73-year-old Yakima resident receiving a monthly Social Security retirement benefit of $2,650. Helen normally receives her payment by direct deposit to her checking account on the 3rd day of each month. Helen subsequently dies on May 26. Social Security is not notified of her death for several weeks, however, so it deposits $2,650 in Helen’s account on June 8.

By law, Helen’s estate must return this money. This is because Helen died before the last day of May. If Helen had lived until, say, June 2, then the estate could keep the June 3 payment, because it was for the month of May.

Many times, once Social Security is notified by the funeral home, bank, or other party, they will claw back the most recent payment(s) and require anyone seeking these payments to submit a claim for them.

Survivor Benefits

While you cannot directly pass your Social Security benefits onto other family members, certain survivor benefits may be available based on your work history. If you were married, your spouse or ex-spouse could be entitled to their own monthly payment of these survivor benefits.

Generally speaking, the surviving spouse must be at least 60 years old, married to the deceased spouse for at least nine months prior to their death, and not remarry before the age of 60. Additionally, an ex-spouse can also claim survivor benefits if they were married for at least 10 years to the deceased spouse. Children and parents who were dependents of a deceased Social Security recipient may also qualify for survivor’s benefits under certain conditions.

Social Security will allow the surviving spouse to take only one benefit however (they are not added together), so it only makes sense to claim a spouse’s benefit if it is larger.

Death Benefits

Social Security also provides a death benefit. This is not exactly a substitute for life insurance. The death benefit is a one-time payment of just $255and is usually paid to the surviving spouse. If there was no surviving spouse, the death benefit may be paid to a qualified dependent child.

Contact a Spokane Estate Planning Lawyer Today

As you can see, you cannot depend on Social Security to provide for your loved ones after you are gone. A qualified Spokane estate planning attorney can advise you on a number of strategies designed to help you prepare for your family’s financial future. Contact Moulton Law Offices, P.S., today to schedule a free consultation. We serve clients throughout the Spokane, Kennewick, and Yakima area.