Delivering the Funeral Support Payment is part of a wider set of actions set out in the funeral costs plan by the Scottish Government to reduce funeral poverty and help people manage funeral costs. This benefit provides critical financial support to people at a difficult time.
Social Security Scotland delivers the Funeral Support Payment supporting eligible individuals in receipt of certain low income benefits with a payment to help in paying for a funeral. The one-off payment is a contribution towards the costs of the funeral. It helps pay for the reasonable burial or cremation fees, some travel costs, and includes a standard flat rate for ‘other expenses’ of £1,010 where the client did not have a funeral plan (or £123.25 if there was a pre-paid funeral plan).
Apply for the Funeral Support Payment on mygov.scot.
Background
In March 2016 we set up the Funeral Payment and Funeral Poverty Reference Group to support Scottish Ministers in developing policy for a new funeral payment.
Consultation on the Funeral Expense Assistance Regulations closed on 23 August 2018. An independent analysis of consultation responses received and our response had been published.
Funeral Expense Assistance (Scotland) Regulations 2019 and the Funeral Expense Assistance and Young Carer Grants (Up-rating) (Miscellaneous Amendments)(Scotland) Regulations 2020 provide the powers to deliver it. We also published research findings visual summary on 8 May 2019.
At that time we also published the impact assessments for regulations:
- Funeral Expense Assistance: Fairer Scotland Duty Assessment
- Funeral Expense Assistance: Equality Impact Assessment
- Funeral Expense Assistance: Islands Impact Assessment
- Funeral Expense Assistance: Business Regulatory Impact Assessment
Other actions to tackle funeral poverty and helping people with funeral costs
As well as the Funeral Support Payment benefit we already took a number of other actions to make more affordable funeral options available. These include:
A voluntary member who was previously covered either as an employed/self-employed/OFW and had at least one (1) contribution payment.
The employee-member was subject to compulsory coverage but was not reported for coverage by his/her employer.
Amount of Benefit
The Funeral Benefit is a variable amount ranging from a minimum of P20,000.00 to maximum of P40,000.00, depending on the member’s number of paid contributions and average monthly salary credit.
If you're handling the financial affairs for an older person who has died, you may wonder how the government knows to stop sending Social Security payments.
Or maybe there's a surviving spouse or dependent who is hoping those benefits can continue.
Although Social Security rules can be complicated, the bottom line is that a person's benefits end at death. And for survivors, whether you qualify depends on several factors.
Here's what to know.
Where to start
It's important for the Social Security Administration to be alerted as soon as possible after the person dies.
In most cases, funeral homes notify the government. There's a form available that those businesses use to report the death.
"The person serving as executor [of the estate] or the surviving spouse can also call Social Security," said certified financial planner Peggy Sherman, a lead advisor at Briaud Financial Advisors in College Station, Texas.
Whoever does the reporting should be armed with the decedent's Social Security number.
When payments stop
Be aware that a person is due no Social Security benefits for the month of their death.
"Any benefit that's paid after the month of the person's death needs to be refunded," Sherman said.
With Social Security, each payment received represents the previous month's benefits. So if a person dies in August, the check for that month — which would be paid in September — would need to be returned if received.
More from Portfolio Perspective
Here's a look at other stories impacting portfolio planning and retirement saving:
- How to reduce the tax bite of the coming great wealth transfer
- Many 401(k) investors don't use target-date funds the right way
- Inflation concerns have many retirees worried about running out of money
If the payment is made by direct deposit, the bank holding the account should be notified so it can return benefits that shouldn't have been delivered.
It may be no surprise that using someone else's benefits after they die is a federal crime, regardless of whether the death was reported or not.
If the SSA receives notice that fraud might be happening, the allegation is reviewed and potentially will warrant a criminal investigation. To combat duplicity, the agency matches records with other government entities to identify unreported deaths.
Benefits for survivors
If a spouse or qualifying dependent already was receiving money based on the deceased's record, the benefit will auto-convert to survivors benefits when the government gets notice of the death, Sherman said.
"For all other cases, the surviving spouse will need to call Social Security and schedule an appointment to apply for survivors benefits," Sherman said. "You cannot do this online."
If the widow or widower has reached their own full retirement age, they can get their deceased spouse's full benefit, Sherman said. They can apply for reduced benefits as early as age 60 (or, generally, age 50 if disabled), in contrast to the standard earliest claiming age of 62.
watch now
VIDEO0:0000:00
Calculating the maximum Social Security tax you can pay
Invest in You: Ready. Set. Grow.
Meanwhile, if the survivor qualifies for Social Security on their own record, they can switch to their own benefit anytime between ages 62 and 70 if that payment would be more.
An ex-spouse of the decedent also might be able to claim benefits, as long as they meet some specific qualifications.
For minor children of a person who died, benefits also may be available, as well as to a surviving spouse who is caring for the kids.
Finally, upon the death of a Social Security recipient, a surviving spouse (or child) is generally given a lump sum payment of $255.