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Jail,,,hardly….be asked to return it.  Absolutely.  Contact Social Security as soon as possibly and let them know the situation.  The funeral home and or hospital have informed Social Security of her death, so they are aware even if it takes them a while to act upon it.    Social security pays in said month for the previous month.  So, if she passed in September, and you are referring to the check received the first part of September, you are fine.  If you are talking about a check received on or after October first, that must be returned.   I would contact Social Security so that you are absolutely accurate in your dealings.   Social Security Fraud, even if not intentional is a serious.
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Social Security is like having a job, you receive ur pay after you have done the work.

So, the check received in October is your September earnings. Now if sister died in September, even at the end of the month, she is not entitled to the October check. If the check was received in September, its for August earnings, that one she should be able to keep. If its taken back, SS is in the wrong and needs to be called on it. I would not touch the October check.

SS has been informed by the Funeral Home of your sister's death. I would call SS to confirm my info. Also, you are not entitled to the $250 death benefit. I actually think its stupid. I would check out if sister has any insurance policies that may cover her burial. Once you are sure about her SS, you can use that to pay off bills. What can't be paid is a loss for the creditor. You are not responsible for her debts.

Are you on her bank acct? If your name is on her account then the acct now may be yours, check with the bank. Does she have a will? If so, are you Executor? If so you will be given a short certificate to handle her affairs. If no Executor or will you can get Administrator which will give you the same responsibility but the state determines who inherits.
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SSA burial benefit pays only if there is a surviving spouse or a dependent child or individual (who would be getting some sort of SSA benefit as they are tied into the deceased SS associated benefits). So adult on their own children, siblings of the deceased, ex spouse do not get burial benefit paid.

I think it’s around $250. Teeny.

SSA has ability to clawback any payments. When my mom died, like almost end of the month, SSA paid the usual 3rd of the month for month after she died. But SSA clawback happened within 3 weeks from checking account SS$ direct deposited into. For mom’s spouse federal retirement that took much longer like 3 months. & again it was clawed back from the bank account. You have to keep the funds there as it will go NSF and with fees attached. SSA will try couple of time to get the clawback & if not there each time hits another NSF fee onto account. If your opening probate, if this happened, it will be a reason to not have you as Executor or have it as a dependent administration.

Also banks can “freeze” accounts if obit in paper or they get daily state or SSA death notices. If that happened you can’t get any $, it’s too late.
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Please don't mess with Social Security unless you know. Call them and ask the rules when it comes to funeral expenses. The Social Security checks usually have to be returned even if your sister lived to the 30th day of the month. The month in which she died is normally taken back unless I am wrong, but I do not know about what is given for help with funerals. If there is a lack of money for funeral services you need to let the Funeral Home know, and plan very low cost burial. You Sister is gone from you now, so please don't mistake showing care on a last ceremony try to speak your love for her. So sorry for your loss.
You asked if you would go to jail. No. You would simply say you weren't aware. But accounts can be frozen, and you WOULD be paying it back, so just don't go somewhere until you know you can. Not worth dealing with it afterward.
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worriedinCali Oct 2019
There’s no social security help for funerals. There’s a $225 death benefit for minor children and surviving spouse.
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