Social Security

Lump-Sum Death Benefits May be eligible: – 1.5 – 10 years of work – widow/er 60 or older (50 if disabled) – divorced widow/er 60 or older (50 if disabled) – caring for child under 16 or disabled – unmarried children up to 18/19 if full-time student – disabled children under 22 – dependent parent(s) 62 or older

Lump-Sum Death Payment $255 in addition to monthly cash benefits Order of Priority: – surviving spouse living in same house – surviving spouse eligible for benefits for the month of death – child/ren eligible for benefits for the month of death

Application Social Security Office/ required information: – applicant and decedent’s social security number – proof of marriage for spouse’s benefit – proof of worker’s death (DC or SSA-721) – applicant and children’s birth certificates – decedent’s W2 or federal tax return – proof of support – proof of divorce – checking/savings account info. for direct deposit

Supplemental Security Income eligibility: – countable resource limitation of $2000 for individual and $3000 for a couple – burial funds up to $1500 each plus burial space expenses are excluded – income and accruals on burial funds and burial space are excluded – assets in “burial fund” and “burial space” must be segregated

An irrevocable contract for final disposition, including income from the contract, is not considered a resource.

Medicare Administered by the Health Care Financing Administration (HCFA) under the U.S. Department of Health and Human Services (HSS)

Supplemental Security Income (SSI) federally administered provides monthly cash payments to the needy, aged, blind and disabled administered by the Social Security Administration

Medicaid joint state-federal health insurance program for low-income individuals administered by individual states resources placed in an irrevocable funeral fund are excluded revocable contracts limited to $1500 for funeral expenses and unlimited burial space expenses

Railroad Retirement separate from Social Security Social Security will determine which agency will pay the benefits

Lump-Sum Death Benefits 10 or more years of service (need not be consecutive) amount determined by when the 10 years was completed – Before January 1, 1975 = $800 – After 1974 = $255

Lump-Sum Death Benefit (cont’d) payable to widow/er living with or supported by the decedent If 10 years service prior to 1974 with no qualified widow/er as survivor, lump sum may be paid to the funeral home or the payer of the funeral expenses (cannot exceed actual costs) If 10 years service after 1974, lump sum payable only to the widow/er

Residual Lump-Sum Payment done in lieu of further annuity payments refund of decedent’s pre-1075 railroad retirement taxes plus an allowance reduced for retirement benefits already paid as well as survivor benefits previously paid by Railroad Retirement Board or SSA if decedent received an annuity for 2 or more years, residual will probably not be payable to survivors

Railroad Retirement has its own forms but SSA 721 acceptable if Social Security number begins with 700, individual was a railroad employee “700” does not insure that the individual is entitled to Railroad Retirement benefits