WILL SOCIAL SECURITY WANT US TO RETURN THE LAST CHECK THAT WAS PAID AFTER DEATH?

The answer to this question actually depends upon when the Social Security recipient dies. The Social Security Administration will only seek to recover a Social Security check that is paid in the month following the month of death. If a person dies on November 30th and a Social Security check is deposited into their account any time in December, this check will need to be returned to the Social Security Administration. The death occurred in a different month than the month when the check was received.

Under this rule it is possible for a deceased person's estate or bank account to receive a Social Security check after death and not have to return it to the Social Security Administration. For example, if a person dies on November 1st and the Social Security Check is deposited into their account on November 3rd or November 23rd: in that case the Social Security payment comes in during the same month as the date of death, so the deceased or their estate is entitled to keep the check.

The real confusion set in when someone's Social Security check is paid out on the third Wednesday of the month. If the person dies early in the month, there is enough time for their bank to hear about the death and shut off automatic deposits to their account. In that case the final Social Security check has been earned, but the Social Security Administration cannot use the ordinary way to get the payment to the deceased. The deceased's heirs need to contact the Social Security Administration directly to recover the final payment. The good news is that the Social Security Administration makes this pretty easy.

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