What Happens to Social Security After You Die?

Did you know that Social Security benefits are paid in arrears? Your monthly Social Security check is really for the previous month, meaning your October check was for the month of September. As Go Banking Rate explains, that’s because the Social Security Administration policy is that you must live for the entire month to receive your benefit check!

That tends to cause a lot of confusion and complaints after a recipient dies. Many family members feel they’re being “cheated” out of payment after their loved one passes away because they often do not receive the final payment. There have been legislative proposals over the years to pay for the month of death or prorate payments to the date of death, but none of these have become law.

While prorating the payment for the month of a recipient’s death certainly seems fair, The Seniors Trust believes retirees would be better served if Congress focused on Social Security reform. We want to see lawmakers enact the Social Security Expansion Act. This landmark piece of legislation would instantly increase benefit checks by about $200 per month. It would also secure the long-term solvency of Social Security and establish a fairer cost-of-living adjustment (COLA), which would mean more money in seniors’ pockets each month.