Seeing a Social Security deposit appear in a deceased family member’s bank account can create an uncomfortable question: Is that money supposed to be there, or does it have to go back? The answer depends largely on which month the Social Security payment covers, because retirement benefits are generally paid in the month after they are earned. The Social Security Administration says no retirement benefit is payable for the month in which a beneficiary dies, even if the death occurs on the final day of that month. That creates situations where a payment arriving after death may still have been payable because it represents an earlier month, while another deposit must be returned. Before withdrawing, transferring, or spending a Social Security payment after death, families should understand these timing rules.
