That “Final” Benefit Check—A Source of Some Confusion
A Social Security beneficiary’s passing is generally a traumatic time for all concerned, and a variety of details and things that need to be addressed often create stress and concern on the part of the survivors. One of them is the question of how to handle the deceased’s final benefit check, and the answer may not be as straightforward as you might think.
Before addressing the disposition of that final check, let’s revisit two fundamental points that can have a bearing on what to do with it. First, remember that Social Security pays benefits the month after they are due, meaning that the benefit payment when received is applicable to the preceding month. For example, a check received in July is actually June’s benefit payment.
Second, Social Security does not prorate monthly benefits. Regardless of birthdate, a benefit due for that month is paid in a full amount rather than a prorated of partial amount. For example, an eligible beneficiary born on the last day of the month would receive a full payment for the month they begin to draw, even though their eligibility technically began on the last day.
OK…so what about that check that arrived during the month the beneficiary died or after the beneficiary’s death but before the end of the month? Since that benefit payment was actually for the previous month, it’s a valid payment for the estate. The confusion around the handing of checks arises when a payment arrives the month after the beneficiary’s death. In this case, since the beneficiary was not alive the entire month, and since benefit payments are not prorated, that check must be returned to the Social Security Administration (SSA). Chances are, of course, that SSA, the U.S. Treasury, or the beneficiary’s bank might have been made aware of the death in time to stop the payment.
And just to make it even more confusing, there can be situations where the agencies involved (SSA, Treasury, or the bank), having been made aware of the death, may have stopped payment of a benefit validly due to the beneficiary’s estate. If the beneficiary’s benefit payment is scheduled for, say, the fourth Wednesday of the month, and the death occurred early in the month, this could easily happen since the SSA’s Death Alert Control and Update System (DACUS) automatically compares the information received with its master files to ensure that erroneous payments after death are blocked. In cases like this, immediate contact with the SSA, either by telephone or online, will result in the payment being re-issued.
Yes, it can be confusing, but don’t forget that the AMAC Foundation’s Social Security Advisory Service is available to help you with any questions you may have in situations like this. Just contact us at 888-750-2622 or via email at SSAdvisor@AmacFoundation.org for immediate information…there’s no charge for this service!
I hope that this organization can help our family get the final check for our brothers estate so we can pay his last medical expenses. The bank sent it back at least i think they did as i can no longer access his account as his Financial POA. We are requesting to be appointed as his representatives to help settle his estate since there was no will.
Verla,
For information, no Social Security benefits are paid for the month a person dies. Thus, if the bank returned to SSA your brother’s SS check for the month he died, it was correct of them to do so because he was not entitled to SS benefits for the month he died (even if he died on the last day of the month). In some circumstances, usually for those whose SS payment is received early in the month, it is possible that SS benefits for the month prior to your brother’s month of death might have been returned. If that is the case, your will need to contact the Social Security administration (as your brother’s POA) to ask for his SS benefits be paid to his estate. You can do that by calling SSA at 1.800.772.1213 (or you local SSA field office), and submitting form SSA-1724 (you can get this form online at SSA.gov). You may also need to use form SSA-11 and will be required to interview at SSA, but you can discuss this also when you call SSA regarding your deceased brother’s last benefit payment. Please accept our sympathies for the loss of your brother.
Regards,
Russell Gloor
Certified Social Security Advisor
The AMAC Foundation
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