How surviving family members can get all available benefits after a loved one dies.
After the death of a loved one, the executor or surviving family members should review the deceased person's papers to see if there are any benefits that may be available to the survivors. The surviving family members may be able to receive a pension, veterans benefits, union benefits, or other funds to which the deceased person was entitled. This article discusses claiming these types of benefits.
To learn about claiming life insurance, annuity proceeds, or Social Security benefits, see Nolo's article How Beneficiaries Can Claim Life Insurance and Social Security Benefits.
Collecting a Pension
The deceased person may have been entitled to pension benefits from a private company, government agency, or union. But what happens to a pension when someone dies? That depends.
Some pensions end at death, meaning that no beneficiary or family member gets to claim the pension. But other pensions provide for payments to a surviving spouse or dependent children—for a few years for some, and longer for others. Some pensions, particularly for government employees, can be generous when it comes to survivors' benefits.
Whether Beneficiaries Receive Pension Payouts After Death
Whether you can collect a deceased person's pension depends entirely on the terms of the particular plan. So, it's worthwhile to dig up the paperwork to check the history of the elections the deceased person made, to see if survivors are entitled to any payouts.
Some factors affecting whether your beneficiaries receive pension payouts might be the deceased person's age at death and whether they had already begun receiving a pension. But again, it will always depend on the deceased person's specific pension plan.
(If you want to make sure your survivors continue to receive your pension after you die, check out Help Your Family Claim Retirement Benefits.)
How to Claim Pension Payouts as the Beneficiary
Contact the plan administrator or the deceased person's employer to make a claim for pension benefits. You'll probably need to provide a certified copy of the death certificate.
If the beneficiaries are entitled to pension payouts, the payouts might be made in one lump sum or in smaller installments. You might get a choice in the matter, or you might not. You might also have the option to roll over the pension benefits into another retirement plan, like an IRA. If so, there might be a deadline by which you need to perform the rollover. Each plan will have its own rules and procedures.
Collecting Veterans Benefits
Most veterans' families are not entitled to any monetary benefits, but here are a few programs that may provide some help.
Dependency and Indemnity Compensation (DIC) benefits. A veteran's surviving spouse (and children under age 18) may be entitled to DIC payments if the deceased veteran:
- died while in the service
- died from a service-related disability, or
- received or was entitled to receive Veterans Administration (VA) compensation for a service-related disability that was considered totally disabling for a certain period of time.
Wartime service pension. A veteran's surviving spouse or unmarried child whose annual income is under certain very low limits may qualify for a pension at the veteran's death. The veteran must have:
- been discharged from service under other than dishonorable conditions, and
- served 90 days or more of active duty with at least one day during wartime; or, if he or she enlisted after September 7, 1980, at least 24 months or the full period for which the person was called to active duty.
Burial allowance. In limited circ*mstances, survivors may be eligible for reimbursem*nt of some costs paid for a veteran's burial or funeral if the expenses were not reimbursed from another source and any of the following are true:
- The veteran died because of a service-related disability.
- The veteran was receiving a VA pension or compensation at the time of death.
- The veteran was entitled to receive a VA pension or compensation but decided not to reduce his or her military retirement or disability pay.
- The veteran died in a VA hospital or while in a nursing home under VA contract.
To apply for these benefits, you'll need copies of the veteran's discharge papers, marriage certificate, and other basic information. For more information, contact the U.S. Department of Veterans Affairs at 800-827-1000 or visit its website at www.va.gov. For more information on benefits that are available to veterans' survivors, get , by Joseph Matthews, with Dorothy Matthews Berman (Nolo).
Collecting Wages Owed the Deceased Person
If the deceased person was working up until the time of death, a surviving spouse or other relative can probably claim the final amount due from the employer. The amount should include the value of any unused vacation days and may or may not include pay for unused sick days.
Send a letter to the former employer asking about unpaid wages and commissions, vacation and sick leave, bonuses, reimbursem*nt for unpaid expenses, pensions, group life insurance, retirement funds, stock ownership, or medical benefits. Provide the deceased's name, Social Security number, date of death, and dates of employment (if you know them), and ask for any information the employer has on these benefits. Check your state law to find out whether your state has specific procedures for requesting unpaid wages.
Claiming a "Family Allowance"
If the estate goes through the regular probate process (see Nolo's article How the Probate Process Works: Information for Executors), dependent family members can ask the probate court for a "family allowance." This is primarily cash that is quickly released from the estate (and is not available to creditors) to help with short-term living expenses. The amount available depends on state law, and generally ranges from a few thousand dollars to several tens of thousands.
Other Possible Benefits and Claims
Family members may be entitled to some other death benefits, depending on the circ*mstances of the deceased's life, health, and employment. Some of these are easy to overlook, so run down the list and see if any of them might apply to your situation.
Workers' compensation. If the deceased person had been receiving workers' compensation payments because of a work-related injury, contact the insurance company that paid the benefits and make sure all benefits due the deceased person were paid. If the death occurred on the job or because of a work-related injury or illness, family members who depended on the deceased person for support will likely qualify for workers' compensation death benefits. Because large sums of money may be involved, you'll almost certainly want to see a workers' comp lawyer.
State disability benefits. If the deceased person was receiving disability benefits from the state, notify the state agency in charge of the benefits. Make sure all payments were made, up to the date of death.
Federal employment benefits. If the deceased person worked for the federal government, benefits may be available to the family or to a beneficiary. Contact the agency for which the person worked.
Railroad Retirement Act benefits. If the person worked for a railroad and was covered by the federal Railroad Retirement Act, survivors may be eligible for benefits. For information, contact the closest Railroad Retirement Board or check out the RRB website at www.rrb.gov.
Unions. Although it's rare, some unions provide death benefits. Family members should contact the union to find out whether any benefits are available.
Benefits from health insurance. Some health insurance policies offer limited coverage for funeral expenses. To find out, call the deceased person's health insurance provider or, if the policy was obtained through a job or membership in an organization, contact the person in charge of administering the program there.
Lawsuits for wrongful death. If the deceased person was killed intentionally or in an accident, survivors may be able to get sizable compensation to help make up the lost income the deceased person would have provided to the family. To get this compensation, survivors must file what's called a "wrongful death" lawsuit. Family members may win such a lawsuit if the death was caused by, for example, an incompetent doctor, a careless driver, someone committing a crime, or a defective product, such as a tire that blew out on a highway. These lawsuits must be filed within a certain period after the death, and it can be important to gather evidence right away. (Learn more in Nolo's article Wrongful Death Claims: An Overview.)
For more information about the different benefits that may be available to a loved one's survivors -- and all facets of settling an estate -- see The Executor's Guide: Settling A Loved One's Estate or Trust, by Mary Randolph, J.D. (Nolo).
