WHAT HAPPENS IF A CLAIMANT DIES BEFORE HIS BACK BENEFIT IS PAID or BEFORE HE HAS CASHED HIS CHECK BY SSA?
The Social Security Act provides that amounts due a deceased beneficiary may be paid to the next of kin or to the legal representative of the estate under priorities established in the law as discussed below. The Social Security Administration in this scenario refers to a “back benefit” as an adjustment of underpayment. Basically, if an individual who has been underpaid dies before receiving payment or negotiating a check or checks representing such payment, the Social Security Administration will first apply any amounts due the deceased individual against any overpayments owed by the deceased individual, unless the Social Security Administration has waived recovery of such overpayment.
The Social Security Administration then will distribute any remaining underpayment to the living person (or persons) in the highest order of priority as follows:
(1) The deceased individual's surviving spouse as defined in section 216(c), (g), or (h) of the Act who was either:
(i) Living in the same household with the deceased individual at the time of such individual's death
or
(ii) Entitled to a monthly benefit on the basis of the same earnings record as was the deceased individual for the month in which such individual died.
(2) The child or children of the deceased individual entitled to a monthly benefit on the basis of the same earnings record as was the deceased individual for the month in which such individual died (if more than one such child, in equal shares to each such child).
(3) The parent or parents of the deceased individual, entitled to a monthly benefit on the basis of the same earnings record as was the deceased individual for the month in which such individual died (if more than one such parent, in equal shares to each such parent). For this purpose, the “parent” includes the parent(s) of any deceased individual who was entitled to benefits under title II of the Act.
(4) The surviving spouse of the deceased individual who does not qualify under paragraph (b)(1) of this section.
(5) The child or children of the deceased individual who do not qualify under paragraph (b)(2) of this section (if more than one such child, in equal shares to each such child).
(6) The parent or parents of the deceased individual, who do not qualify under paragraph (b)(3) of this section (if more than one such parent, in equal shares to each such parent).
(7) The legal representative of the estate of the deceased individual as defined in paragraph (d) of this section.
Please be aware that the amount due to the individual does not necessarily belong to the estate of the individual. As discussed above, the Social Security Administration has its own rules for distribution. The monies due goes to the estate ONLY if the first six (6) categories of next of kin do not exist. If you believe that you may have claim for these benefits as the next of kin, you can submit to a local Social Security Office form 1724 which is a Claim for Amounts Due In Case of a Deceased Beneficiary.
You can also download the PDF version of the SSA-1724.
This form is completed to help Social Security decide who should receive any payment due. According to the Social Security Administration, you should also submit with the form any evidence you have which shows your relationship to the deceased. If you are a spouse, a marriage certificate (and correspondence i.e., from a utility company, addressed to you at the marital address, to show that you resided in the same household if you are claiming that you resided in the same household) would be helpful. If you are a child of the deceased, your birth certificate would be helpful. If you are a child and your birth certificate does not list the i.e., the father on a birth certificate, then an order establishing paternity would be helpful. If you are claiming money as the legal representative of the estate, you should submit your appointment papers.
In the Lafayette area, the contact information for the local Social Security Administration office is:
SOCIAL SECURITY
10 S. 2ND ST
LAFAYETTE, IN 47901
Ph: (888)884-0522
In the South Bend area, the contact information for the local Social Security Administration office is:
SOCIAL SECURITY
GROUND FLOOR
602 SOUTH MICHIGAN ST
SOUTH BEND, IN 46601
Ph: (877)274-5415
In the Elkhart area, the contact information for the local Social Security Administration office is:
SOCIAL SECURITY
231 WATERFALL DRIVE
ELKHART, IN 46516
Ph: (866)426-0532