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Social Security Death Benefits
By Cathy | June 14, 2008
Last month, a friend lost her husband in an accident on his way to work. Now she has to raise their little boys, ages three and six, by herself. I’m not sure what her financial situation is like now, but I’ve spent the last month making sure that my husband and I have adequately provided for our family in the event of the unthinkable.
I figured out that we have adequate life insurance. You can read my posts at Chief Family Officer on figuring out how much life insurance you need and whether you might need a whole life policy. I also shared 10 tips for reducing your life insurance costs.
For the first time, I researched Social Security death benefits and learned some interesting things:
- Much of what you need to know is on your annual statement. Each year before your birthday (after you turn 25), the Social Security Administration sends out a statement summarizing your earnings and projecting your benefits. The SSA web site has a sample statement. You can see that it shows whether you qualify for death benefits and the amount your survivors would receive if you died this year (see page 2).
- The amount of your survivors’ benefits is determined by your lifetime earnings. Again, this is reflected on your annual statement. The more you’ve earned, the greater the benefits.
- A surviving spouse receives full death benefits only upon reaching age 65 or age 67, depending upon when he or she was born. Lesser benefits may be available at an earlier age.
- A exception to the above rule is that a younger surviving spouse can receive death benefits if he or she is caring for a child aged 16 or younger who is entitled to a child’s benefit. The number of years you must work before you are eligible for death benefits depends upon your age, but even if you have not qualified, benefits can be paid to your children and your spouse who is caring for them if you worked for one and one-half years in the three years before your death.
- Unmarried children 18 and under are eligible for their own survivors’ benefits. If they’re still in high school, they can receive benefits up to the age of 19. There are also provisions for disabled children and other descendants to receive benefits.
- Your surviving spouse and minor children may be eligible for a one-time death benefit of $255. I’ve always seen this listed on my annual statement and never quite known what to make of it. It’s such a small amount, I wonder why they even bother.
- If your surviving spouse works, his or her benefits may be reduced. But the good news is, your spouse’s work won’t affect the benefits your children receive.
For more information, visit the Widows, Widowers, and Other Survivors section of the SSA web site.
Topics: Miscellaneous |
June 20th, 2008 at 2:37 pm
My sister died in 2005 at age 38. At that time, she left behind a husband and two boys, ages 5 and 10. In what form, and in whose name, are the boys receiving my sister’s SS death benefits? Does my brother-in-law have direct access to that money, or does it go into some kind of trust for the boys to have when they come of age?
June 20th, 2008 at 3:19 pm
@Esther - I’m no expert, but I would guess the money goes to the boys’ guardian, who presumably would be her husband. I doubt it would go into a trust, since the money is intended for current living expenses. The best way to know for sure would be to ask your brother-in-law, or, if you’re not comfortable doing that, the Social Security Administration. They probably won’t answer personal questions, but they should be able to answer general questions like who the checks are made out to. You might even be able to find the answer on their web site (just click on the link in the post).
August 24th, 2008 at 6:49 pm
My Mom is 80 divorced and recieves a small portion of Dad’s SS Benefits ( he died 21 yrs ago) He remarried and the second wife recently died . Can My Mother get an increase in monies ( ie. full survivors benefits) now that the second wife has passed?
October 3rd, 2008 at 5:11 pm
My mother died 8/26/08. Is the sept. payment from social security to be returned?
Thank you