Claiming the Last Social Security Payment After Death

The loss of a spouse or parent is never easy. Amidst the grief and upheaval, the last thing on most people’s minds is paperwork. But for many families, who wonder, what happens to social security when you die? Don’t overlook an important step: claim the Social Security Lump Sum Death Payment, the last Social Security payment after death.

This one-time payment of $255 can provide much-needed financial assistance during a difficult time. In 2023 alone, it helped over 5 million beneficiaries. Yet a surprising number of eligible survivors fail to claim the benefit, either because they’re unaware it exists or aren’t sure how to apply.

Our goal is to make the process as smooth and stress-free as possible. You’ll understand the Social Security death benefit and how to claim it if you’re eligible. Let’s start by looking at the origins and evolution of this important program.

The History of the Social Security Death Benefit

The Social Security Death Benefit has a long history, evolving over time to provide financial support for surviving family members. Here’s an in-depth look through history:

• Early Days: When the Social Security Act was first passed in 1935, it did not include provisions for ongoing survivor benefits. Instead, the program paid out a single lump-sum benefit to the estate of a deceased worker. This payment helps with burial expenses and provides immediate financial relief to the family.
• 1939 Amendments: In 1939, Congress passed amendments to the Social Security Act that introduced two new categories of benefits: payments to the spouse and minor children of a retired worker and survivor benefits paid to the deceased worker’s family. However, the lump-sum death payment was retained as a separate benefit.
• 1950s: The 1950s saw a significant expansion of the Social Security program, including changes to the death benefit. Amendments passed in 1950 made it so the lump-sum could be paid in addition to any monthly survivor benefits the family was entitled to. The stated intent was to help the family cover burial costs without having to dip into their ongoing support payments.
• Current Status: Today, the Social Security Lump Sum Death Payment remains a part of the Social Security program, even as survivor benefits have become more comprehensive. In 2020:
  • A total of $226 million was paid out in lump-sum death benefits.
  • This represented about 0.02% of total Social Security benefit payments.

So while the death benefit serves a much smaller role compared to monthly survivor benefits, it still provides important assistance to hundreds of thousands of families each year.

Who is Entitled to Death Benefits in Social Security?

The Social Security Lump Sum Death Payment is not automatically paid to all survivors. Specific eligibility criteria must be met, which differ for spouses and children.

• Spouse Eligibility: Some wonder, “When your spouse dies do you get their Social Security?” For a surviving spouse to receive the death benefit, they must have been living with the deceased worker at the time of death. If they were living apart, the surviving spouse could still receive the payment if they met one of the following conditions: they were already receiving benefits on the worker’s record, or they became eligible for benefits upon the worker’s death.
• Child Eligibility: If no surviving spouse qualifies, the death benefit can be paid to the worker’s children if they meet specific requirements. To be eligible, a child must be unmarried and under age 18 (or up to age 19 if attending elementary or secondary school full time) or unmarried and disabled, having become disabled before age 22. In cases where there are multiple eligible children, the benefit is split evenly among them.
• If No One Qualifies: It’s important to note that if there is no eligible surviving spouse or child, then no death benefit is paid. The payment cannot be made to other relatives or the deceased person’s estate.

Applying for the Social Security Death Benefit

To claim the Lump Sum Death Payment, you must apply through the Social Security Administration (SSA). This process involves submitting an application along with supporting documents. Here’s what you need to know:

When to Apply

The death benefit must be claimed within two years of the worker’s death. If you already receive Social Security benefits on the deceased’s record, you may not need to take any action to receive the death payment. The SSA will automatically determine your eligibility and issue the payment.

How to Apply

If you need to apply for the death benefit, you can report a death of your loved one. You can do so by phone or in person at your local Social Security office. You will need to provide the following information:

• The deceased worker’s Social Security number
• The worker’s date and place of death
• Your relationship to the deceased
• Your Social Security number
• Your date of birth 
• Your mailing address and phone number
• Bank account information for direct deposit (optional)

Required Documents

When you apply, you will also need to provide certain documents to verify your claim. These may include:

• A death certificate for the deceased worker
• Your birth certificate or other proof of birth
• Proof of U.S. citizenship or lawful alien status
• W-2 forms or self-employment tax returns for the deceased worker
• Marriage certificate, if applying as a widow or widower
• Divorce papers, if applicable

The SSA can guide you on specific documents needed in your case.

Receiving the Lump Sum Death Payment

If you are determined to be eligible for the Lump Sum Death Payment, the SSA will issue the flat $255 payment either by check or direct deposit. Here are a few important things to note about receiving the payment:

• Automatic Payments: If you are already receiving benefits on the deceased worker’s record at the time of their death, the SSA will automatically calculate your eligibility for the death benefit and issue the payment. There is no need to apply separately. 
• One-Time, Flat Payment: The death benefit is a one-time, lump-sum payment of $255. This fixed amount does not vary based on the worker’s earnings or other factors.
• Taxation and Interaction with Other Benefits: The Lump Sum Death Payment is not subject to federal income tax. However, the SSA may check to see if you have any outstanding debts to federal agencies before issuing the payment.  
• Additionally, it’s important to note that receiving the death benefit does not affect your eligibility for Social Security survivor benefits or other government assistance programs.

Frequently Asked Questions About the Death Benefit

What if the deceased received monthly Social Security benefits?

If the deceased worker received Social Security benefits during the month of their death, that money must be returned to the SSA. The death benefit is separate from this requirement.

Can non-citizens receive the death benefit?

To receive the Lump Sum Death Payment, you must be a U.S. citizen or a legal resident. The SSA may require proof of citizenship or legal alien status when you apply.

Does the death benefit cover funeral expenses? 

The purpose of the death benefit is to provide a measure of financial relief following a worker’s death. While the money can be used for any purpose, including funeral costs, it is not specifically intended as a funeral benefit.

What’s the difference between the death benefit and survivor benefits?

The Lump Sum Death Payment is a one-time payment of $255 to eligible spouses or children. Survivor benefits, on the other hand, are ongoing monthly payments made to qualifying family members, such as spouses, children, and dependent parents. You can receive both the death benefit and survivor benefits if you qualify.

What happens to the last social security payment after death?

After a Social Security beneficiary’s death, the last payment may be issued if they passed away in the payment month. Eligible survivors can also claim a one-time Lump Sum Death Payment of $255 by applying through the Social Security Administration within two years. If no eligible spouse or child exists, the payment is not awarded.

A Helping Hand in a Time of Need

Losing a loved one is never easy. Nonetheless, the Social Security Lump Sum Death Payment, while modest in amount, can provide a measure of financial support in a difficult time. By understanding how this benefit works and taking timely action to claim it, you can focus on what matters most: honoring your loved one’s memory and finding your way forward.

If you believe you may qualify for the death benefit, don’t hesitate to contact the SSA to begin the application process. And remember, this is just one of many survivor benefits that may be available to support you and your family. With knowledge, planning, and a little help, you can secure the financial assistance you need to weather this challenging chapter.

Here are some resources available to help you understand your rights and options:

• SSA Survivor Benefits
• Lump-Sum Death Payment application form
• SSA’s Benefit Eligibility Screening Tool
• National SSA hotline 1-800-772-1213