Social Security Death Benefit: What Families Can Claim

When someone dies, their surviving family members may be entitled to benefits from the Social Security Administration. The most well known is the one-time lump sum death payment of $255, but there are also ongoing monthly survivor benefits that can provide meaningful financial support. Understanding what is available and how to apply can help families access money they are entitled to during a difficult time.

What Is the Social Security Death Benefit

The Social Security lump sum death payment (LSDP) is a one-time payment of $255 made to eligible survivors of a deceased worker who paid into Social Security. The payment has been $255 since 1954 and has never been adjusted for inflation. While it was originally intended to help cover funeral costs, it now covers only a tiny fraction of the average funeral expense.

To be eligible, the deceased must have earned enough Social Security credits during their working life. Most workers earn the required credits through regular employment. If the deceased was receiving Social Security benefits at the time of death or had earned at least 40 work credits (approximately 10 years of work), their survivors are likely eligible.

The $255 payment is separate from any ongoing monthly survivor benefits. It is a single payment that is applied for and paid once. Many families miss this benefit simply because they do not know it exists or do not realize they need to apply for it separately.

Who Is Eligible for the $255 Payment

Eligibility for the $255 lump sum death payment is more restricted than many people expect. The payment can only be made to a surviving spouse who was living with the deceased at the time of death. If the spouse was not living with the deceased, they may still qualify if they were receiving Social Security benefits on the deceased's record.

If there is no eligible surviving spouse, the payment can go to a child of the deceased who was already receiving Social Security benefits on the deceased's record in the month of death. This typically means a dependent child under 18, or a child between 18 and 19 who is still in school full time.

The payment cannot be made to adult children, parents, siblings, friends, funeral homes, or the estate of the deceased. If no one meets the strict eligibility criteria, the $255 is simply not paid. This surprises many families who assume the money will be available to help with funeral costs regardless of their specific circumstances.

How to Apply for the Death Benefit

You must apply for the $255 death payment. It is not issued automatically when someone dies. To apply, call the Social Security Administration at 1-800-772-1213 or visit your local Social Security office in person. The application must be filed within two years of the date of death.

You will need several pieces of information when you apply: the deceased's Social Security number, the date of death, and a certified copy of the death certificate. You will also need to provide your own Social Security number and documentation of your relationship to the deceased, such as a marriage certificate for a surviving spouse.

If the funeral home has already reported the death to Social Security (which is common), the administration may already have the death on file. However, you still need to actively apply for the $255 payment. It will not be sent to you automatically, even if Social Security is aware of the death.

Survivor Benefits Beyond the $255

The $255 death payment gets the most attention, but the ongoing monthly survivor benefits are far more valuable for most families. A surviving spouse aged 60 or older can receive a percentage of the deceased's Social Security benefit, ranging from about 71 percent at age 60 to 100 percent at full retirement age. A surviving spouse at any age who is caring for a child under 16 can also receive benefits.

Dependent children under 18 (or up to 19 if still in high school) are eligible for monthly survivor benefits equal to about 75 percent of the deceased parent's benefit amount. Disabled children may continue to receive benefits into adulthood if the disability began before age 22.

In some cases, dependent parents aged 62 or older may also qualify for survivor benefits. The total amount paid to a family is subject to a family maximum, which is typically between 150 and 180 percent of the deceased's benefit amount. A Social Security representative can calculate the specific amounts your family is entitled to.

How to Notify Social Security After a Death

Social Security should be notified of the death as soon as possible. In most cases, the funeral home will report the death to Social Security on your behalf as part of their standard process. However, it is a good idea to confirm that this has been done. If it has not, you can report the death yourself by calling 1-800-772-1213.

Once notified, Social Security will stop the deceased's monthly benefits. If a benefit payment was made for the month of death or after, it may need to be returned. Social Security benefits are not payable for the month of death, even if the person died on the last day of the month. This catches many families off guard.

If the deceased was receiving benefits by direct deposit, contact the bank to notify them of the death as well. Any payments received after the date of death will need to be returned to Social Security. Failing to return these payments can result in an overpayment notice and collection action.

Common Mistakes to Avoid

The most common mistake is failing to apply for the $255 death payment at all. Many eligible survivors do not know the benefit exists or assume it will be paid automatically. It will not. You must apply, and you must do so within two years of the date of death.

Another mistake is not applying for monthly survivor benefits. Some surviving spouses wait until their own retirement age to file, not realizing they could have been receiving survivor benefits years earlier. If you are a surviving spouse aged 60 or older, or a surviving spouse of any age with a child under 16, contact Social Security to find out what you are entitled to.

Finally, be careful about spending or depositing any Social Security payments received after the month of death. These payments must be returned. If the deceased received a payment by direct deposit for the month they died, do not spend that money. Contact Social Security and the bank to arrange for the return of those funds.