The death of a Social Security Disability beneficiary does not result in the passing of their monthly benefit to family members. These benefits are better thought of as an insurance benefit, based on the work record of the individual during their working life.
They are not a personal account or fund that can be passed on as a legacy. However, this Social Security program does provide for survivor benefits for some family members. These monthly payments are based on the work record of the deceased, and are designed to be a partial replacement of the family income lost.
Survivor Benefits After an SSDI Recipient’s Passig
The granting of these SSDI benefits depends on whether the deceased had earned sufficient work credits in the system. The general requirement is 40 credits, roughly equivalent to a decade of work.
Whether a family member is eligible and how much they might receive is determined in an individual analysis, based on their age, relationship to the deceased, and other factors. This analysis is performed using rules established by the SSA. An application is made for these benefits by providing the required documentation and making the required contact with the SSA.
They are not paid automatically, but the beneficiary must take steps to start the process. The agency reviews each case to ensure all requirements have been met before paying out the funds. The funds are meant to be paid out on a continuing basis.
Post-SSDI eligibility criteria for surviving relatives
Various groups of relatives may be eligible for survivor benefits based on the work record of a deceased SSDI recipient. A surviving spouse is eligible if they are 60 years of age or more, or 50 if they have a recognized disability. They are also eligible at any age if they are caring for the child of the deceased, who is either under 16 years of age, or has a recognized disability.
The value of the benefit can go as high as 100% of the PIA of the deceased, but this value can be reduced if multiple beneficiaries are receiving payments at the same time. A surviving divorced spouse may also be eligible to claim these benefits.
The prior marriage must have lasted a minimum of 10 years, and the individual cannot have remarried prior to the age of 60, or 50 if disabled. They cannot also be receiving any benefit based on their own work record that is equal or greater than the amount they would receive based on the work record of the deceased.
If these conditions are met, they may receive a payment similar to a spouse, and their payment will not affect the amount assigned to other beneficiaries.
Can children receive SSDI benefits as “heir”?
The children of the deceased recipient can receive benefits if they are under 18, or up to 19 if still in full-time secondary school. The children of any age can also qualify if the child’s disability began before age 22. Each qualifying child is entitled to 75% of the deceased’s PIA.
However, there is a family maximum, generally between 150% and 180% of the total benefit, so individual value can be reduced if multiple family members qualify at the same time.
Other potential beneficiaries and “Lump-Sum” payments
In very specific cases, the dependent parents of the deceased could potentially be eligible for survivor benefits. To qualify, a parent would need to be at least 62 years old, and have been supported by the deceased for more than half of the years of their life.
They also cannot be remarried. If only one parent meets these standards, they would receive 82.5% of the PIA. If both parents qualify, then each would get 75%. In addition to the monthly payments, the SSA also offers a one-time death payment, called the Lump-Sum Death Payment. This payment, which is $255, is payable to the surviving spouse who was living with the deceased.
If no spouse meets this requirement, the payment can be assigned to a child, if they were eligible for benefits when they died. This one-time payment is paid outside any other monthly benefits that are granted. It should be noted that certain relatives are not eligible under current SSA rules.
Adult children without a disability are not eligible to receive any type of benefit. Other relatives, such as siblings, uncles, nephews, and cousins, are also not eligible, other than in extremely rare circumstances, such as grandchildren or stepchildren, who were supported financially by the deceased. subtitle: handling of unpaid benefits and application process When an SSDI recipient dies, there may be unpaid benefits, such as back pay or pending payments that are awaiting approval.
Applying for survivor benefits
Only if no eligible relatives are in any of these categories are the unclaimed funds paid into the general trust fund for Social Security, rather than becoming part of the estate of the individual to be paid to others. The process of reporting the death to the SSA starts with the funeral home, though families should check to confirm the death was reported by calling 1-800-772-1213.
It is important to report the death immediately, as this will stop SSDI payments and avoid the need to repay payments. The family members eligible to receive survivor benefits should apply for survivor benefits as soon as possible, either online through the SSA or over the phone. Payments can be paid retroactive to the date of death, but there is a deadline to apply.
