Who Collects Past Due Benefits if a Claimant Dies Before a Disability Decision is Issued
I recently received a call from a colleague about a situation that is all too common given the delays associated with the Social Security disability adjudication process – the death of a claimant prior to a final adjudication.
In this case, my friend's mother was married to a gentleman who had applied for benefits in the early 2000's. He had been denied at his first hearing, then appealed and ended up before a judge a second time for a second hearing. Shortly after the second hearing (but before a decision was made) he passed away.
Because of the more then 7 year pendency of his claim the past due benefit amount was substantial – over $115,000. The question – who gets the money.
According to Social Security law (Code of Federal Regulations, Title 20, Section 404.503(b)), the surviving spouse would be the primary beneficiary if she/he was living in the same household as the claimant at the time of death. If the surviving spouse does not qualify, the surviving children collect. If there are no children, the parents of the deceased collect. If there are no parents, the surviving spouse who was not living with the claimant at the time of his death, and so forth.
Note that the funds do not go into the deceased claimant's estate – they are payable directly to the spouse or other beneficiary.
I previously published a blog post about how I won a case for a deceased claimant. Prior to proceeding I submitted form HA-539, a Notice Regarding Substitution of Party Upon Death of a Claimant. Individuals eligible to receive benefits must complete and submit form SSA-1724, which is a form entitled Claim for Amounts Due in the Case of a Deceased Beneficiary.
Filed under Lump Sum Awards by 
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Comments on Who Collects Past Due Benefits if a Claimant Dies Before a Disability Decision is Issued
Hi I am wondering if my son is entitled to any additional benefits? My son is seven and his Dad has been M.I.A for 6 and a half years. Last year he started receiving disability benefits thank god. I think his other children are getting a lot more, because their mom don't have to work. I work full time and have trouble just keeping enough food in the house even with the benefits he gets (about 450 a month). Part of the problem is I am putting my son through private school which costs about 500 a month, not including the babysiter I pay 150 a month to to keep my job. I don't want to put him back into public school because they don't have enrichment in my district, and he was getting in fights. My family has spent 1000's of dollars to help us just get by, but they can't do much any more because they are retiring.
I received my approval letter from Social Security for SSD on December 2 2009 and still have not received my past due benefits. My onset date of disability is May of 2003. I was informed from one of the employees at the local social security office that I will be receiving a substantial amount of money. The supervisor told me that "they have to make sure they dot all the i's and t's before they release the money. I have received my first social security check in February, and am wondering why I keep getting the run around! Also, why would they pay more attorney his 25%before paying my past due benefits. I am starting to worry!