Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Mom passed away - Social Security question
Old 05-25-2018, 09:22 AM   #1
Recycles dryer sheets
 
Join Date: Jan 2018
Posts: 103
Mom passed away - Social Security question

My mom passed away. My dad receives a Social Security payment of about $1500 per month. My mom was receiving about half that amount. From what I understand, my dad will receive a one time death benefit of a couple hundred dollars, but no ongoing monthly survivors benefit. Is that correct?
__________________

Human is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-25-2018, 09:23 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 23,010
First, I'm sorry for your loss. Second, yes... he'll continue to get his $1,500/month and her $750/month benefit will stop.

Now if it had been the other way around, then your mom's $750 benefit would have been increased to $1,500 and your dad's $1,500 would have stopped.

Either way, household benefit would go from $2,250/month to $1,500/month.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 05-25-2018, 09:27 AM   #3
Recycles dryer sheets
 
Join Date: Jan 2018
Posts: 103
Thank you, pb4uski
Human is offline   Reply With Quote
Old 05-25-2018, 09:30 AM   #4
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 3,667
Sorry for your loss.

And yes, your dad should receive a $255 one-time death benefit from SS.

Technically he is entitled to a widowed spouse benefit, but since he has the higher monthly benefit in actual practical terms he won't receive anything additional.

Finally, your mother's last monthly benefit is the last month for which she lived the entire month. If she died in the last few weeks, that would mean that April was her last benefit month. Since benefits are paid one month later, she would likely receive that last benefit payment sometime in May. You should notify SS of her death, although the funeral home probably will do or has done so. If you accidentally receive a benefit for her in June, you should expect SS to claw it back when they do their final reconciliation.

Oh, and your dad will still be able to file married filing jointly this year (for tax year 2018) on his taxes one last time even though your mom passed away during the year, but next year (tax year 2019) he will have to file single and probably pay higher taxes.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 05-25-2018, 11:13 AM   #5
Recycles dryer sheets
 
Join Date: Jan 2018
Posts: 103
Thanks, SecondCor521. And thanks for the additional helpful info.
Human is offline   Reply With Quote
Old 05-25-2018, 11:52 AM   #6
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 3,667
Sure. I just went through all this stuff - my Mom passed away about two years ago, and I did a lot of her estate work because my Dad was in grief and my sisters live in other states.

Another thing I'll point out - property, such as houses and stocks and bonds, get a step up in basis to the value as of the date of death. So if your parents owned a house together, you may want to get an appraisal or other valuation assessment. If they owned stocks or bonds, contact the brokerage firm and ask them to step up the basis in their records. Some states (such as mine) are community property and some are not, and that affects what assets get the basis step up. But depending on the unrealized gains from when your parents purchased them to the value on date of death, you could legally avoid potentially a large amount of capital gains taxes later.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 05-25-2018, 12:14 PM   #7
Recycles dryer sheets
 
Join Date: Jan 2018
Posts: 103
SecondCor521, that is very helpful. Thank you.

I'm sorry to hear bout your mom. I now truly understand how difficult it is, losing a parent.
Human is offline   Reply With Quote
Old 05-25-2018, 12:30 PM   #8
Recycles dryer sheets
Newventurer's Avatar
 
Join Date: Sep 2012
Location: in the sticks
Posts: 458
Quote:
Originally Posted by SecondCor521 View Post
Sure. I just went through all this stuff - my Mom passed away about two years ago, and I did a lot of her estate work because my Dad was in grief and my sisters live in other states.

Another thing I'll point out - property, such as houses and stocks and bonds, get a step up in basis to the value as of the date of death. So if your parents owned a house together, you may want to get an appraisal or other valuation assessment. If they owned stocks or bonds, contact the brokerage firm and ask them to step up the basis in their records. Some states (such as mine) are community property and some are not, and that affects what assets get the basis step up. But depending on the unrealized gains from when your parents purchased them to the value on date of death, you could legally avoid potentially a large amount of capital gains taxes later.
Also sorry to hear of your loss Human..

SC521 - would the step up basis only be on one half of the value of any shared assets?
Newventurer is offline   Reply With Quote
Old 05-25-2018, 04:24 PM   #9
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 3,667
Quote:
Originally Posted by Newventurer View Post
Also sorry to hear of your loss Human..

SC521 - would the step up basis only be on one half of the value of any shared assets?
I'm not an expert, but I think it would depend on whether the state is community property or not, and possibly how the assets were titled, and maybe other factors.

In my Mom's case, she lived in a community property state and as odd as it sounds, I believe all of their taxable account was stepped up in basis when she died, not just "her" half. But my parents also had some complex estate plans in place, so I don't know if their situation would apply to anyone else.

My suggestion would be to do some quick research on the state you're interested in and maybe ask your CPA and/or estate attorney.
__________________

__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Dad recently passed, need help advice on Mom's retirement strategy ryes FIRE and Money 21 10-02-2015 04:14 PM
Newly Passed Law Regarding Social Security Benefits ?? billt460 FIRE Related Public Policy 16 11-01-2014 08:29 AM
DW Passed Away, 3 months before FIRE. What now? Bree Other topics 41 11-11-2008 02:20 PM
My father passed away simple girl Other topics 41 06-17-2008 04:15 AM
Mother Passed Away chinaco Health and Early Retirement 39 06-12-2008 10:57 AM

» Quick Links

 
All times are GMT -6. The time now is 05:33 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×