Dear Rusty, My husband of 48 years died on December 30, and he received a Social Security direct deposit for December’s benefits in early Janu- ary, but Social Security demanded the bank return his December payment. I used part of his December benefit to pay for household expenses, so his bank account was overdrawn after his bank paid back his Social Security for the December benefit. My questions are: 1. Is it legal for Social Security to demand a return of his benefits because he died one day prior to January 1, 2023? That just seems so wrong to me! 2. Am I legally responsible for the overdrawn amount his bank repaid to Social Security? I was not notified by SS or his bank before “the deed was done.” 3. Aren’t there Social Security spousal benefits available for the surviving spouse, and how do I apply for them (form #, please)? My husband medically retired early, and his Social Security benefits were always lower than mine, but I fear that my benefits may be affected by his death. Is that true? Signed, Grieving Widow, Feeling Wronged Widow Stung by Social Security’s “Claw Back” Rule
resulting from the bank fulfilling its legal obligation to Social Security still remains. As for any spousal or survivor benefits you might be entitled to you say your husband’s Social Security payment was less than yours, which means you weren’t getting a spousal benefit and cannot get a surviving spouse bene- fit as a widow (you can only get your benefit or his, whichever is higher). You will, however, be eligible for a one-time lump sum death benefit of $255. I know it’s not much, but you’re entitled to it and should claim it. And, from what you’ve described that your monthly Social Security amount is more than your husband’s your own benefit will not be negatively affected by any of this. Signed, Russell Gloor This article presents the opinions of the AMAC Foundation Staff and is intended for informa- tion purposes only. It does not represent legal or financial guidance.
Dear Grieving Widow, Please accept our sincere condolences on your husband’s passing. Unfortu- nately, I don’t have good news for you about his December benefit payment. Social Security pays benefits in the month following the month they are earned, and the recipient must live the entire month to be eligible for that month’s benefit. Even though your husband lived until almost the end of the month, Social Security’s rule says that he must live the entire month to
be eligible for December benefits; thus, they took back (often referred to as “Clawed Back”) the December benefits paid in January. So, is all of this legal? Yes, I’m afraid it is. From what you’ve shared, Social Secu- rity got back the money they are legally entitled to, so you have no further obli- gation to Social Security. The bank had no choice but to return your husband’s December Social Security payment they were legally obligated to do so. Thus, your obligation to resolve your husband’s overdrawn bank account
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48 • AMAC Magazine
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