A Survivor's Guide to Benefits and Taxes After a Death

Who needs to be notified, and in what order?

Several government agencies and financial institutions need to know about the death before you can claim benefits or meet tax obligations. Start with Social Security and work outward. The order matters because some benefits have deadlines or depend on other notifications being complete first.

1. Social Security Administration. Report the death and apply for survivor benefits (call 1-800-772-1213).
2. The deceased's employer(s). Ask about life insurance, pension survivor benefits, and any final paychecks or accrued leave.
3. Life insurance companies. File claims as soon as you have the policy information and a death certificate.
4. Pension and retirement plan administrators. Ask about survivor benefits and distribution options.
5. The Department of Veterans Affairs. If the deceased was a veteran, ask about DIC, burial benefits, and the Survivors Pension.
6. Your tax preparer or accountant. The deceased's final tax return will need to be filed, and there may be estate tax considerations.

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Social Security survivor benefits

Surviving family members may be eligible for monthly payments based on the deceased's work history. The amount depends on how much the deceased paid into Social Security over their lifetime.

To qualify, the deceased generally needs to have earned enough Social Security credits (40 credits, or roughly 10 years of work, though fewer credits are needed if they die young).

You cannot apply for survivor benefits online. Call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) or visit your local SSA office in person.

Who qualifies

• Surviving spouse age 60 or older (or age 50 or older with a qualifying disability).
• Surviving spouse at any age if they are caring for the deceased's child who is under 16 or disabled.
• Divorced spouse age 60 or older if the marriage lasted at least 10 years (remarriage before age 60 disqualifies, but remarriage after 60 does not).
• Unmarried children under 18 (or under 19 if still in high school full-time, or any age if disabled before age 22).
• Dependent parents age 62 or older who received at least half their support from the deceased.

How much do survivor benefits pay?

The benefit amount is based on the deceased's earnings record:

• Surviving spouse at full retirement age (67 for those born 1960 or later): 100% of the deceased's benefit.
• Surviving spouse age 60 to full retirement age: 71.5% to 99% of the deceased's benefit, depending on age at the time of claiming.
• Surviving spouse with a disability (age 50-59): 71.5% of the deceased's benefit.
• Surviving spouse caring for a child under 16: 75% of the deceased's benefit.
• Each eligible child: 75% of the deceased's benefit.
• Each dependent parent: 82.5% (one parent) or 75% each (two parents) of the deceased's benefit.

There is a family maximum that caps the total amount paid to all family members on one earnings record.

The $255 lump-sum death payment

Social Security pays a one-time $255 death payment to a surviving spouse who was living with the deceased or who was receiving benefits on the deceased's record. If there is no eligible spouse, the payment can go to a qualifying child.

This amount has not been adjusted since 1954.

What to bring when you apply

• The deceased's Social Security number
• Your Social Security number
• Your birth certificate
• Your marriage certificate (if applying as a spouse)
• The deceased's death certificate
• Your bank account information for direct deposit
• W-2 forms or self-employment tax returns for the most recent year

Do not delay applying if you are missing some documents. The SSA can help you gather what you need.

If you are already receiving Social Security

If you are receiving retirement benefits on your own record and your deceased spouse's benefit would be higher, you can switch to the higher survivor benefit. You cannot collect both in full. SSA will pay your benefit amount plus the difference between your benefit and the survivor benefit.

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Life insurance

Life insurance proceeds go directly to the named beneficiary outside of probate, with no waiting for court approval.

The beneficiary files a claim with the insurance company, provides a certified death certificate, and the insurer typically pays within two to four weeks. If you cannot find the policy, several free tools can help you locate it.

To file a claim, contact the insurance company and provide:

• A certified death certificate
• The policy number (if you have it)
• A completed claim form (the insurer will provide this)

Most claims are paid within two to four weeks of receiving the completed paperwork. The beneficiary can usually choose between a lump-sum payment or installments.

If you cannot find the policy

If you suspect a life insurance policy exists but cannot find the paperwork:

• Check the deceased's records: Look for premium payment records in bank statements, emails, and tax returns.
• Contact their employer(s): Many employers offer group life insurance. Ask HR about any policies.
• Use the NAIC Policy Locator: The National Association of Insurance Commissioners offers a free online tool that searches participating insurers for policies in the deceased's name. Submit a request with the deceased's Social Security number, name, date of birth, and date of death. If a policy is found and you are the designated beneficiary, the insurer will contact you within 90 days.
• Check your state's unclaimed property database: Life insurance benefits that go unclaimed are eventually turned over to the state. Search at missingmoney.com.

Tax treatment of life insurance

Life insurance death benefits are generally not taxable as income to the beneficiary. If the beneficiary chooses installment payments instead of a lump sum, the interest earned on the installments is taxable.

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Pension and employer benefits

Contact the deceased's current and former employers to ask about survivor benefits. Employer-sponsored benefits often include:

• Pension survivor payments
• 401(k) or 403(b) accounts
• Group life insurance
• Final paychecks or accrued leave

Federal law (ERISA) protects a surviving spouse's right to most of these benefits, but you need to file claims to collect them.

Pension survivor benefits

Many defined-benefit pension plans provide ongoing payments to a surviving spouse. The amount depends on the plan's terms, but a common structure pays the surviving spouse 50% to 100% of the pension the deceased was receiving (or would have received).

Under federal law (ERISA), if the deceased was married and had a vested pension, the surviving spouse is entitled to survivor benefits unless they signed a written waiver. Contact the plan administrator and provide:

• A certified death certificate
• Proof of your relationship (marriage certificate)
• Your bank account information for direct deposit

401(k) and 403(b) accounts

Retirement accounts with a named beneficiary transfer to that person outside of probate. Under ERISA, a surviving spouse is automatically the beneficiary of a 401(k) or 403(b) unless they signed a written waiver.

Contact the plan administrator and provide a death certificate and your photo ID. Distribution options include:

• Spouse beneficiaries: Can roll the funds into their own IRA, leave them in the plan (if allowed), or take distributions.
• Non-spouse beneficiaries: Must generally withdraw the full balance within 10 years (the SECURE Act 10-year rule).

Withdrawals from traditional 401(k) and 403(b) accounts are taxed as ordinary income. Consult a tax professional before taking distributions to understand the tax impact.

Final paychecks and accrued leave

The deceased may be owed a final paycheck, unused vacation days, or other accrued benefits. Contact their employer's HR department. Some employers release these payments to the surviving spouse directly. Others require Letters Testamentary or other legal documentation.

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Veterans benefits

If the deceased served in the U.S. military, their surviving family members may qualify for Dependency and Indemnity Compensation, burial benefits, and a needs-based Survivors Pension. These benefits are administered by the Department of Veterans Affairs and are separate from Social Security. Contact the VA at 1-800-827-1000 or visit va.gov.

Dependency and Indemnity Compensation (DIC)

DIC is a tax-free monthly payment to eligible survivors of veterans who died from a service-connected injury or illness, or who had a total disability rating for a required period before death. The base rate for a surviving spouse in 2026 is $1,699.36 per month, with additional amounts for dependent children, veterans rated 100% disabled for 8+ years, and survivors who need Aid and Attendance.

To qualify, the surviving spouse must have been legally married to the veteran at the time of death and generally must not have remarried.

Remarriage after age 57 may preserve eligibility in some cases.

VA burial benefits

Eligible veterans can be buried in any of the 155 national cemeteries at no cost, which includes a gravesite, headstone or marker, and perpetual care. The VA also provides a burial flag and Presidential Memorial Certificate.

For veterans who are not buried in a national cemetery, the VA offers burial allowances:

• Service-connected death: Up to $2,000 toward burial and funeral expenses.
• Non-service-connected death: Up to $978 toward burial expenses, plus up to $978 for a plot or interment allowance.

VA Survivors Pension

The Survivors Pension is a needs-based monthly benefit for low-income surviving spouses and unmarried dependent children of wartime veterans. Unlike DIC, the death does not need to be service-connected. For 2026, the net worth limit to qualify is $163,699.

A surviving spouse cannot receive both DIC and the Survivors Pension. If you qualify for both, the VA will pay the higher amount.

DIC is usually the larger benefit, but if the veteran's death was not service-connected and the spouse meets the income requirements, the Survivors Pension may be the only option.

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Filing taxes for a deceased person

When someone dies, the executor, surviving spouse, or personal representative is responsible for filing their final tax return and, if necessary, an estate income tax return.

Most of this is straightforward if you have a tax professional, but understanding the basics will help you know what to expect.

The final income tax return (Form 1040)

The deceased's final individual tax return covers January 1 through the date of death. It reports all income earned during that period and claims all eligible deductions and credits.

• Who files: The executor, administrator, or surviving spouse.
• Which form: The standard Form 1040 (or 1040-SR for seniors). Write "DECEASED," the person's name, and the date of death across the top.
• Filing deadline: April 15 of the year after the death, the same as any other individual return.
• Filing status: A surviving spouse can file jointly for the year of death if they did not remarry during that year. This usually results in a lower tax bill than filing separately.
• Claiming a refund: If the deceased overpaid taxes, file Form 1310 to claim the refund (surviving spouses and court-appointed representatives are usually exempt from this requirement).

The IRS does not require a copy of the death certificate with the return.

Estate income tax return (Form 1041)

If the deceased's estate earns $600 or more in income after the date of death (from interest, dividends, rental income, sale of assets, etc.), the executor must file Form 1041, the estate income tax return. This is separate from the deceased's final individual return.

Form 1041 is due by April 15 of the year after the estate's tax year ends. An estate can choose a fiscal year, so the filing date may vary.

Prior year returns

If the deceased had unfiled tax returns from previous years, those still need to be filed. The executor is responsible for bringing all tax obligations current.

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Federal estate tax

The federal estate tax applies only to estates whose total value exceeds the exemption threshold, which is $15 million per individual in 2026 (effectively $30 million for married couples). Most estates are well below this line and owe nothing.

For estates that do owe, the top rate is 40% on amounts above the exemption.

• 2025 exemption: $13.99 million per individual (effectively $27.98 million for married couples).
• 2026 exemption: $15 million per individual (effectively $30 million for married couples).
• Tax rate: Up to 40% on amounts above the exemption.
• Filing: If the estate exceeds the exemption, the executor must file Form 706 within nine months of the date of death (a six-month extension is available).

Even if the estate is below the filing threshold, it can be worth filing Form 706 to elect portability. Portability allows a surviving spouse to use any unused portion of the deceased spouse's exemption, which can significantly reduce or eliminate estate tax when the surviving spouse later dies.

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State estate and inheritance taxes

Some states impose their own estate tax or inheritance tax with exemption thresholds much lower than the federal government's $15 million. An estate that owes nothing in federal tax may still owe state taxes in one or more states.

Five states impose an inheritance tax, twelve states and DC impose an estate tax, and Maryland imposes both.

Estate tax vs. inheritance tax

• An estate tax is paid by the estate before assets are distributed to heirs.
• An inheritance tax is paid by the heirs on what they receive. Rates often depend on the heir's relationship to the deceased (spouses and children usually pay lower rates or are exempt).

States with an inheritance tax (2026)

Five states impose an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Maryland is the only state that imposes both an estate tax and an inheritance tax.

States with an estate tax (2026)

Twelve states and the District of Columbia impose a separate estate tax. Exemption amounts range from $1 million (Oregon, Massachusetts) to $15 million (Connecticut, which matches the federal exemption). Other states with an estate tax include Hawaii, Illinois, Maine, Maryland, Minnesota, New York, Rhode Island, Vermont, and Washington.

Because state thresholds are so much lower than the federal exemption, many more estates owe state tax than federal tax. If the deceased owned property in multiple states, the estate may owe taxes in each state.

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Common mistakes to avoid

The most costly mistakes involve missing deadlines, failing to apply for benefits that are not automatic, and making tax decisions without professional advice. Several of these errors can result in lost benefits or unexpected tax bills that are difficult to reverse.

• Missing the Social Security notification. Benefits may be overpaid if the death is not reported promptly. Overpayments must be repaid, which creates an avoidable headache.
• Not applying for survivor benefits. Survivor benefits are not automatic. You must apply. Some benefits are not fully retroactive, so delays cost money.
• Assuming life insurance pays automatically. The insurer will not pay until a claim is filed. If you cannot find a policy, use the NAIC Policy Locator.
• Ignoring state taxes. Even if the estate is below the federal threshold, it may owe state estate or inheritance tax.
• Missing the portability election. If the first spouse to die has a sizable estate, filing Form 706 to elect portability protects the surviving spouse's tax position, even if no tax is due now.
• Withdrawing retirement funds without tax advice. Distributions from inherited 401(k)s and IRAs are taxable income. The timing and method of withdrawal can make a significant difference in the total tax bill.

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Key contacts and resources

Here are the main organizations you will need to contact when claiming survivor benefits and handling tax obligations. Keep this list handy as you work through the process.

Who	Contact	What they handle
Social Security Administration	1-800-772-1213	Survivor benefits, lump-sum death payment, reporting the death
Department of Veterans Affairs	1-800-827-1000	DIC, burial benefits, Survivors Pension
NAIC Policy Locator	naic.org/lifeinsurance	Finding lost life insurance policies
IRS	1-800-829-1040	Tax questions, requesting EIN for the estate
Unclaimed property search	missingmoney.com	Finding unclaimed life insurance, bank accounts, etc.