Does a spouse automatically inherit everything if widowed and what about benefits?
After the death of a spouse getting one’s estate in order can be challenging. Here are a few factors to consider.
According to the Social Security Administration (SSA), around eleven percent of the payments paid by the agency are directed toward spouses or dependents of deceased workers. If a person eligible to or does receive Social Security benefits dies, the law states that their family can claim them.
What happens when a spouse dies?
Wells Fargo has provided guidance to those who may be dealing with the tragic loss of a spouse. The financial institution states clearly that a will or estate of the deceased may have to be probated “if there are any individually held assets with no designated beneficiaries.”
When a will is in place, the process is much more simple, and that should be considered as couples begin to age. Without a will, it is up to the state to distribute assets, which can cause many problems for families as they deal with the death of a loved one.
If the will says that everything is to go to the spouse, then that is typically what will happen. If there is no will, the process of distributing assets can take much longer as families may need to go to court to have them allocated.
What happens to government benefits like Social Security?
Various factors contribute to the determination of the number of benefits that will be paid.
Widow/Widower
Generally, the SSA will pay the benefits to a qualifying widow/widower. Those with disabilities will be able to claim the benefits imminently so long as they have been disabled for at least seven years.
Once a spouse has died, the SSA urges those who believe they would be eligible to receive survivor’s benefits to do so quickly, as many payments are not retroactive.
To begin the process, one must fill out an application. Then, once the SSA has received a death certificate, they transfer the benefits over to the spouse or child’s name. The SSA recommends providing the funeral home with the deceased Social Security Number to report the death easily.
In some cases, rather than making monthly payments, the SSA can offer a “Special Lump-Sum Death Payment.” The payment is worth $225 and is typically “paid to the surviving spouse who was living in the same household as the worker when they died.”
For those eligible or receiving Social Security benefits themselves, the SSA says that they will determine “whether you can get a higher benefit as a widow or widower.”
Benefit Amounts
The benefit amount depends on the age and/or disability of the survivor.
Widows and widowers who are of retirement age can claim one hundred percent of benefits.
Those who are sixty years old are entitled to anywhere between 71.5 to 99 percent of the benefits. A disabled spouse over the age of fifty and fifty-nine can claim 71.5 percent. Any other spouse of a deceased worker over sixteen will be allowed to claim 75 percent. Children of a deceased beneficiary are also entitled to 75 percent of the benefit amount.
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Hotlines
During these challenging times, the SSA is able to provide support.
The agency has a hotline that can be reached at 1-800-772-1213 to walk widows or family members through the process. The phone line is open on weekdays between 8:00 a.m. and 7:00 p.m.
One can also visit as SSA field office to speak with a representative about their case in person. Making an appointment I not necessary but it can expedite the process.