Does the funeral home tell Social Security? What families still need to do

When someone dies, families are told to "notify Social Security," and most don't know whether that means them. Usually it doesn't. But there are still three things the family should know about, and one of them involves money that has to go back.

Who reports the death

Social Security says the funeral home usually reports the death, so most families don't need to. Give the funeral director the person's Social Security number and they'll handle it.

If no funeral home is involved, or you're not sure it was reported, call Social Security at 1-800-772-1213. Have ready:

• The person's name and Social Security number
• Their date of birth and date of death

Social Security takes death reports by phone or at a local office. A website offering to "register a death with Social Security" for a fee isn't Social Security.

The payment that has to go back

This is the one that catches families out. Social Security pays a month behind: the payment that arrives in August is for July. So if someone dies in July, the August payment wasn't owed, and it has to be returned. Social Security's rule is that benefits for the month of death and any later months must be returned.

If the payments went into a bank account, tell the bank about the death and ask it to send back any Social Security payment that arrives for the month of death or later. Doing it now is a phone call. If the money is spent first, it becomes a letter from Social Security asking for repayment.

The one-time $255 payment

Social Security pays a one-time death payment of $255. It goes to:

• The surviving spouse, if they were living together (or in some cases if they were living apart)
• If there's no spouse, a child who was eligible for benefits on the person's record

It isn't paid automatically. You apply by calling 1-800-772-1213, and you must apply within two years of the death.

Monthly survivor benefits

This is a separate question from the $255, and often a bigger one. Depending on age and circumstances, monthly benefits may be paid to:

• A surviving spouse, from age 60 (or 50 with a disability), or at any age if caring for the person's child under 16
• A surviving divorced spouse, in some cases
• Unmarried children under 18 (up to 19 if still in high school), or older with a disability that began before 22
• Parents 62 or older who depended on the person for at least half their support

You can't apply for survivor benefits online. Call 1-800-772-1213, and you can apply for the $255 payment and monthly benefits in the same call.

A short checklist

1. Confirm the funeral home has reported the death, or call 1-800-772-1213 yourself.
2. Call the bank and ask it to return any payment for the month of death or later.
3. Ask Social Security about the $255 payment and survivor benefits in the same call.
4. Write down the date of each call and the name of the person you spoke to.

Most of what goes wrong after a death isn't the big decisions. It's the small calls nobody wrote down. Keep a list.