Death can often be an uncomfortable subject to consider — especially when one feels death is still a long way off. However, it is never too early to consider what would happen if death should occur sooner than expected. When dealing with the loss of a loved one, financial concerns are often at the forefront of many families’ minds. Social Security benefits can provide some relief, but understanding how they relate to funeral expenses can be confusing. Here are the top five questions people often have regarding Social Security and funeral costs.
1. Does Social Security Help Pay for Funeral Expenses?
One of the most common questions people have regarding Social Security and funeral expenses is whether Social Security offers direct financial assistance to cover the costs of a funeral.
The simple answer is no—Social Security does not provide direct payments or reimbursements specifically for funeral or burial expenses. It is however always good to understanding the nuances of what Social Security can and cannot do for those navigating the financial aftermath of a loved one’s death.
2. What Is the Social Security Lump-Sum Death Payment?
The Social Security Administration (SSA) provides a one-time lump-sum death payment of $255 to eligible survivors. This amount has not changed for many years and applies uniformly to all eligible recipients, regardless of the deceased’s lifetime earnings or the circumstances of their death. This payment can be used to help cover funeral expenses. To qualify, the deceased must have earned enough Social Security credits. The payment is generally made to the surviving spouse living in the same household or to a child who was receiving benefits on the deceased’s record. The death must be reported to the Social Security Administration (SSA). This is often done by the funeral home if provided with the deceased’s Social Security number.
If our sister company Funerals Your Way was assisting you with the passing, we will file a SSA-721 form (Statement of Death by Funeral Director) form to the Social Security Administration.
3. How Can Surviving Spouses Access Social Security Survivor Benefits?
Surviving spouses may be eligible for survivor benefits based on the deceased spouse’s earnings record. These benefits can provide ongoing financial support and help with various expenses, including funeral costs. The amount a surviving spouse receives depends on the deceased’s earnings record and the survivor’s age. If the surviving spouse has reached full retirement age, they can receive 100% of the deceased’s benefit amount. If this is not the case the amount is less. To be eligible for survivor benefits there are sme restrictions.
Work Credits: The number of credits needed to qualify for benefits depends on the age of the deceased at the time of death. Generally, a person needs 40 credits (10 years of work) to be fully insured for benefits, but fewer credits may be needed for younger workers.
Marital Status: The surviving spouse must have been legally married to the deceased. Common-law marriages may also qualify if they are recognized by the state where the couple lived.
Divorced Spouses: Divorced spouses may also be eligible for survivor benefits if the marriage lasted at least 10 years, and the surviving ex-spouse did not remarry before age 60 (or age 50 if disabled).
4. Can Dependent Children Receive Benefits?
Yes, dependent children of the deceased may be eligible for benefits. Unmarried children under 18, or up to 19 if they are still in high school, can receive benefits.
In some cases, benefits are also available for children who are disabled and were dependent on the deceased.
5. What Steps Should Be Taken to Apply Benefits After a Death?
Applying for benefits after a loved one’s death involves several steps:
Notify the SSA: The funeral director can often report the death to the SSA. You will need the deceased’s Social Security number.
Gather Required Documents: These include the deceased’s death certificate, Social Security numbers for both the deceased and the survivor, proof of relationship (like a marriage certificate), and birth certificates for surviving children.
Complete the Application: You can apply for survivor benefits by calling the SSA or visiting a local office. Some benefits may also be applied for online.
Conculsion
Understanding these aspects of Social Security can help alleviate some of the financial stress associated with funeral expenses. It does not cover much but can be off assistance in providing some resources for some extra such as sea burial. While Social Security does not cover all costs directly, knowing about the benefits and how to access them can provide much-needed support during a difficult time.
