The Estate Desk

Last verified 2026-10-23; facts checked against the primary sources below

Do you have to return the Social Security payment for the month of death?

Last verified: October 23, 2026

The short answer: Yes. Social Security does not pay benefits for the month a person dies, whatever the date. If your parent died in July, the payment that arrives in August pays for July and must go back (SSA). A direct deposit is returned through the bank; a paper check should not be cashed and goes back to SSA (SSA).

This is the same in every state. It is federal law and Treasury's banking rules, not probate.

Which payments go back?

Social Security pays each month's benefit in the following month. So the payment that must go back is the one that arrives after the month of death, plus any later ones (SSA).

Date of death Payment that arrives the next month Keep it or return it? Source
Any day in July The August payment, which pays for July Return it SSA
Any day in July September and later payments Return them SSA
Early August, before the August payment date The August payment, which pays for July It was due, because your parent lived through all of July. The bank may still send it back; survivors can then claim it (see below) SSA POMS GN 02408.650
Any day in June or earlier A payment for a full month your parent lived that never arrived Due. Eligible survivors can claim it with Form SSA-1724 SSA

The rule is about the month, not the day. A person who died on July 31 and a person who died on July 1 are treated the same: no benefit for July (SSA).

How does the money go back?

How benefits were paid What to do Source
Direct deposit Contact the bank and ask it to return any funds received for the month of death or later SSA
Paper check Do not cash it. Return the check to SSA as soon as possible SSA
Supplemental Security Income (SSI) by direct deposit Tell the bank about the death. The bank returns the money to SSA. Do not withdraw it SSA

For SSI, SSA says payments sent after the month of death, or deposited after death, are not due and must be returned (SSA).

Can Social Security take the money back from the bank account?

Yes, through the bank. Federal benefit deposits run on Treasury rules, and SSA recovers post-death deposits with a notice of reclamation sent to the bank (SSA POMS GN 02408.650).

Treasury rule What it means for the family Source
The bank must return benefit payments it receives after it learns of the death Once the bank knows, the next deposit goes straight back 31 CFR 210.10
From the time the bank learns of the death, it may not allow further withdrawals of post-death federal benefit payments That money is held, even if you are a joint owner SSA POMS GN 02408.650
If a payment posted before the bank knew, the bank may return it or wait for the reclamation A deposit that posted before the bank knew can still be taken back later SSA POMS GN 02408.650
To limit its own liability, the bank gives the government the names, addresses, and phone numbers of co-owners, anyone authorized to withdraw, and anyone who withdrew funds after the death Spending the deposit does not make it go away. It can be traced to the person who took it out 31 CFR 210.11
Treasury's rules do not themselves direct the bank to debit the account; the bank's rights against the account come from state law and the account contract Your account agreement can let the bank recover from the account 31 CFR 210.12

Do not move the deposit to another account or spend it. Leave it where it landed until the reclamation is settled. If the account is frozen while this happens, see what releases a frozen bank account after a death.

What if the bank returned a payment that was actually due?

This happens when someone dies after the end of a month but before that month's payment date. The bank still follows Treasury's rule and generally returns the payment. SSA says the bank acted within the law, and it does not send a reclamation for a payment that was due (SSA POMS GN 02408.650).

The family claims it back. A payment due to the person who died is paid in this order (SSA; SSA POMS GN 02301.030):

Order Who receives a payment due to the person who died
1 A surviving spouse who lived in the same household, or who was entitled to a monthly benefit on the same record for the month of death
2 Children entitled to a monthly benefit on the same record for the month of death
3 Parents entitled to a monthly benefit on the same record for the month of death
4 Any other surviving spouse
5 Any other children
6 Any other parents
7 The legal representative of the estate

The claim form is SSA-1724, Claim for Amounts Due in the Case of a Deceased Beneficiary. Send it to your local Social Security office (SSA).

How do you report the death?

Funeral homes generally report deaths to SSA, so you usually do not need to (SSA). If no funeral home is involved, or it did not report, call SSA with the person's name, Social Security number, date of birth, and date of death (SSA).

Contact Details Source
Phone 1-800-772-1213, Monday through Friday, 8 a.m. to 7 p.m. in most U.S. time zones SSA
TTY 1-800-325-0778 SSA
Outside the United States A Federal Benefits Unit, or the International Call Center at +1-855-522-6936 SSA

Tell the bank too. The bank cannot hold back the next deposit until it knows. For the full reporting steps, see how to report a death to Social Security.

Who gets the $255 lump-sum death payment?

Social Security pays a one-time $255 lump-sum death payment. It is not automatic (SSA).

Who Eligible? Source
Surviving spouse living with the person who died Yes SSA
Surviving spouse living apart Yes, if eligible for benefits on the record of the person who died SSA
A child, when there is no surviving spouse Yes, if eligible for benefits on the record in the month of death: age 17 or younger, ages 18 to 19 and in school (K-12) full time, or any age with a disability that began at age 21 or younger SSA; SSA
Other adult children, the estate, the funeral home Not listed by SSA SSA

Apply within 2 years of the death (SSA). SSA's page offers an online application after you sign in to your account, or you can call 1-800-772-1213 and say you want to apply for the lump-sum death payment (SSA).

A surviving spouse or child may also qualify for monthly survivors benefits, and SSA says eligible family members may receive survivors benefits for the month the beneficiary died (SSA). Ask about this when you call.

What should you do now?

  1. Confirm the funeral home reported the death, or call SSA yourself.
  2. Tell the bank that received the deposits. Ask it to return the month-of-death payment and any later ones.
  3. Do not spend or move the deposit. Treasury's rules let the government trace it to whoever withdrew it.
  4. Do not cash any paper check dated after the death. Return it to SSA.
  5. Check the date of death against the payment date. If your parent died after a month ended but before that month's payment arrived, file Form SSA-1724 for it.
  6. Apply for the $255 payment within 2 years, if a spouse or eligible child survives.

Frequently asked questions

My parent died on the last day of the month. Do we keep that month's payment?

No. Social Security pays nothing for the month of death, whatever the day (SSA). A death on July 31 means the August payment goes back.

I am a joint owner of the account. Is the deposit mine?

Not the post-death benefit payment. Once the bank learns of the death, it may not allow withdrawals of post-death federal benefit payments (SSA POMS GN 02408.650), and co-owners are among the people the bank must identify to the government (31 CFR 210.11). The rest of the balance in a joint account is a separate question; see what releases a frozen bank account.

The deposit was already spent on the funeral. What now?

Tell the bank and SSA what happened. The bank can be asked to identify anyone who withdrew funds after the death (31 CFR 210.11), so expect SSA to ask for the money back. Keep the funeral receipts for the estate's records.

Is the $255 payment meant for the funeral?

SSA describes it as a one-time payment to help cover costs when a spouse or parent dies (SSA). It goes to the spouse or eligible child, not to the funeral home or the estate.

This is general information about federal benefit rules, not legal advice.

The Estate Desk helps families settle estates. theestatedesk.com

Primary sources