From the editor:
When my grandmother passed away on April 30 some years ago, I asked the same question.  I was very surprised to learn that under current law, Social Security benefits are not payable for the month in which a recipient dies. This applies no matter what day of the month the beneficiary dies, even if the last day.  The check or direct deposit that your spouse would have received on May 3rd is for the month of April and if it is received, it must be returned to Social Security.

According to the Social Security Administration (SSA) this provision has been in the law since 1939.  Legislative history does not show why benefits are not payable for the month of death.  SSA does note, however, that the provision complements the provision of the law that allows survivors benefits to be paid to the widow or widower (if eligible) for the entire month of death. 

The Social Security Administration recommends that you should:

• Promptly notify Social Security of your husband's death by calling SSA toll-free at 1-800-772-1213.
• If monthly benefits were being paid via direct deposit, notify the bank or other financial institution of his death. Request that any funds received for the month of death (or later) be returned to Social Security as soon as possible.
• If benefits were being paid by check, DO NOT CASH any checks received for the month in which the beneficiary died or thereafter. Return the checks to Social Security as soon as possible. To find your local Social Security office, check your local phone directory or see http://www.ssa.gov/locator. 

If you received a benefit check that was made out to the two of you jointly, or a deposit received in a joint bank account, Social Security can quickly re-issue a new check for the correct amount of benefits to which you are entitled.  If you receive a retirement benefit based on your own work and earnings record, this is the time to apply for survivors benefits if that benefit would be higher.

A one-time payment of $255 is also payable to the surviving spouse if you were living with the beneficiary at the time of death, OR if living apart, and you were receiving Social Security benefits on his earnings record.  To obtain this benefit, you must apply (unless you already receive a spouse benefit) within two years of death.

July 2002