When someone dies, Social Security does three things that surprise almost every family: it stops the monthly check immediately, it claws back the payment for the month of death, and it pays a one-time death benefit of just $255. Survivors may also qualify for ongoing monthly benefits, but only if they apply and only if they meet the rules. Here is how each piece works and what to do first.

Report the death to Social Security right away

Social Security needs to know about the death before anything else can happen. In most cases the funeral home reports it for you, as long as you give them the deceased person's Social Security number. Confirm with the funeral director that they will make the report. If you would rather handle it yourself, or if there was no funeral home involved, call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778). You cannot report a death online.

Report it quickly. Every month a payment goes out after a death is a payment the agency will later reclaim, and chasing those clawbacks is one of the most common headaches survivors face.

The month-of-death rule: why the last check gets taken back

Social Security benefits are paid the month after they are earned. The check that arrives in June is payment for May. Because of that timing, a person must live the entire month to be entitled to that month's benefit.

If your father dies on June 28, he was not alive for all of June, so he is not entitled to the June benefit, even though he lived 28 of its 30 days. The payment that lands in July (covering June) has to go back. If it already hit his bank account, the bank will usually reverse the direct deposit automatically once the death is reported. If a paper check arrives, do not cash it. Return it.

This catches families off guard because it feels unfair. The rule is rigid, and the agency will recover the money one way or another, so it is better to expect the reversal than to spend it.

The $255 lump-sum death payment

There is a one-time death benefit, and the amount is fixed at $255. It has not changed since 1954. It will not cover a funeral, and it is not meant to. Think of it as a small administrative payment, not financial support.

Who can claim the $255:

• A surviving spouse who was living in the same household as the deceased at the time of death.
• A surviving spouse living apart who was already receiving benefits on the deceased's record, or who becomes eligible for benefits on that record in the month of death.
• If there is no qualifying spouse, a child who is eligible for benefits on the deceased's record in the month of death.

You have to apply for the $255. It is not sent automatically. And there is a deadline: you must apply within two years of the date of death. In many cases the SSA representative will set it up during the same call where you apply for survivor benefits, but do not assume it happened. Ask.

Monthly survivor benefits: the part that actually matters

The ongoing survivor benefit is where the real money is, and it is the piece most families do not fully understand. A worker's Social Security record can support monthly payments to several family members after death.

Who may qualify for survivor benefits:

• A surviving spouse age 60 or older (age 50 or older if disabled).
• A surviving spouse of any age who is caring for the deceased's child, if that child is under 16 or disabled.
• Unmarried children under 18 (or up to 19 if still in high school).
• Children of any age who became disabled before age 22.
• A surviving divorced spouse, if the marriage lasted at least 10 years (the caregiving exception can apply at any age if they are caring for a qualifying child).
• Dependent parents age 62 or older who relied on the deceased for support.

A surviving spouse who has reached full retirement age can receive 100% of what the deceased was getting. Claim earlier and the benefit is reduced, down to about 71.5% at age 60. If the deceased had not yet claimed and was getting delayed retirement credits, those credits carry into the survivor benefit.

One detail worth planning around: you generally cannot collect your own retirement benefit and a full survivor benefit at the same time. You get the higher of the two. But because the two are calculated separately, many widows and widowers can take the survivor benefit first and switch to their own larger retirement benefit at 70, or the other way around. Timing the switch can mean tens of thousands of dollars over a retirement, so it is worth running the numbers before you file.

How to apply for survivor benefits

You cannot apply for survivor benefits online. Call 1-800-772-1213 or contact your local Social Security office to start a claim. Have these ready:

• The deceased person's Social Security number and your own.
• A certified copy of the death certificate (the funeral home can order extra copies, or see our guide on how many you need).
• Your marriage certificate, if you are a surviving spouse.
• Birth certificates for any children claiming benefits.
• The deceased's most recent W-2 or self-employment tax return.
• Bank account and routing numbers for direct deposit.

The date you apply can matter. Survivor benefits are not always fully retroactive, so a delay can cost you months of payments. If you think you might qualify, call and ask instead of waiting until you have every document in hand.

What about overpayments after the fact

Sometimes benefits keep arriving for months after a death, usually because the report was delayed or a payment slipped through. The agency will eventually catch it and send an overpayment notice asking for the money back. If the funds went to a joint account or were spent by a survivor, that person can be held responsible for repaying them.

If you get an overpayment notice you believe is wrong, or repaying it would be a hardship, you have options: you can ask for a reconsideration, request a waiver, or arrange a payment plan. Do not ignore the notice. Respond in writing and keep copies of everything.

Where Social Security fits in the larger picture

Social Security is one thread in a much bigger task. Settling an estate means tracking down accounts, handling the paperwork, opening an estate bank account, and moving assets to the people who inherit them. The benefits questions above sit right next to a dozen others: notifying banks, claiming life insurance, transferring titles, filing the final tax return.

Sunset helps families handle the whole thing in one place. We map out what the deceased owned and owed, generate the probate paperwork for your state and county, set up an FDIC-insured estate account, and guide the transfers to heirs. More than 10,000 families have used Sunset, and it is free to families. So the Social Security call becomes one clear step instead of a loose end you are afraid to forget.

Frequently asked questions

How much is the Social Security death benefit?

The one-time lump-sum death payment is $255. It has been fixed at that amount since 1954 and is paid to an eligible surviving spouse or, if there is none, an eligible child. It is separate from any ongoing monthly survivor benefits, which can be much larger.

Who gets the $255 death benefit?

A surviving spouse who was living with the deceased at the time of death is first in line. A spouse living apart can qualify if they were already receiving or became eligible for benefits on the deceased's record. If there is no qualifying spouse, an eligible child can claim it. You must apply within two years of the death.

Does Social Security take back the last month's payment?

Yes. A person must be alive for the entire month to be entitled to that month's benefit. Because Social Security pays a month behind, the payment that arrives after the death (covering the month the person died) is reclaimed. A direct deposit is usually reversed automatically; a paper check should be returned uncashed.

Can a surviving spouse get both their own benefit and a survivor benefit?

Not both in full at the same time. You receive the higher of the two amounts. But because they are calculated separately, you can often claim one first and switch to the other later, for example taking a survivor benefit at 60 and your own retirement benefit at 70. Timing the switch can significantly increase your lifetime total.

How do I report a death to Social Security?

Most funeral homes report the death for you once you provide the deceased's Social Security number, so confirm the funeral director will do it. Otherwise call 1-800-772-1213. You cannot report a death or apply for survivor benefits online.

How long do I have to apply for survivor benefits?

Apply as soon as you think you may qualify. Survivor benefits are not always fully retroactive, so waiting can cost you monthly payments you would otherwise have received. The $255 lump sum has a firm two-year deadline from the date of death.

Handling the rest of the estate

The Social Security calls are usually one of the first things on a survivor's list, but they are far from the last. If you are sorting out everything that comes after a death, Sunset can help you find the accounts, produce the right paperwork, and move money to the people it belongs to, all in one place and free to your family. See how Sunset works.