Get Answers to Frequently Asked Questions
When most individuals see Social Security taxes withheld on their earnings, they think of the benefit they’ll receive in retirement. In reality, our nation’s Social Security program has many safety nets that provide financial protection to workers and their families.
One such safety net is survivors benefits for children who have suffered the loss of a parent. These children may be eligible for as much as 75% of their parent’s future Social Security benefit.
Following are answers to several frequently asked questions regarding the Social Security benefits available to minors who have lost a parent.
Are adopted children or stepchildren eligible for benefits?
All unmarried children of the decedent, including adopted children and stepchildren, may be eligible for benefits.
How can I file a claim?
The surviving spouse, divorced spouse or guardian should begin a claim on behalf of a minor child by visiting their local Social Security office.
How soon do benefits begin?
Benefits are payable the month after the loss of a parent.
How long do benefits last?
Benefits typically extend until a child reaches age 18. Benefits are extended to age 19 if a child is still attending school (K-12) — and for life if they develop a disability at age 21 or earlier.
Do benefits change over time?
Benefits do change, and it’s important to periodically coordinate with the Social Security Administration. At the beginning of a new calendar year, beneficiaries will automatically receive an increase in benefits due to the Social Security Administration’s annual inflation adjustment. If one child ages out of benefits, benefits will be recomputed and split between any remaining eligible beneficiaries.
What’s the maximum monthly distribution?
If a worker passes away and has multiple eligible beneficiaries, benefits are typically split evenly. Benefits are limited to between 150% and 180% of a worker’s full retirement age benefit. The upper threshold is determined by a four-part formula.
Let’s assume Jane passed away last week and had a daughter, Suzie. Jane worked as a counselor for the local school district. Her daughter, Suzie, would receive 75% of Jane’s projected Social Security benefit. If Jane had twins, her daughters would each receive 75% of her projected Social Security benefits. However, if Jane had triplets, they wouldn’t receive 225% (75% x 3), as benefits would be capped at 180%. In this case, each daughter would receive an equal payment of 60% of Jane’s projected Social Security benefits every month.
Who oversees a child’s benefits?
Benefits for a minor are paid to the minor’s guardian. When a child reaches age 18, the administration must begin making payments directly to the child. If the child has not already done so, this is a great opportunity for them to visit a local bank branch or credit union to establish an account in their name.
How can I determine benefits for my kids?
To view Social Security benefits available for your family, you can create an online account by visiting ssa.gov/myaccount. Benefits are based on all prior and current earnings. In 2024, the maximum amount of earnings taxed by the Social Security administration is $168,600. Earnings above $168,600 in a calendar year won’t increase the maximum benefit amount for a child.
I’m not working — are my kids eligible for benefits after my lifetime?
If a worker has achieved at least 40 credits of employment in which they paid into Social Security, they have secured enough credits to qualify their family for benefits on their earnings record. However, more lenient qualifications are available for families who lose a parent at a young age (defined by the Social Security administration as age 61 or younger). An individual needs at least six credits of gainful employment plus one additional credit for each year after their age 28. In 2024, a credit is earned for every $1,730 in covered earnings, limited to four credits available per year. To make sense of this rule, a credit is often thought of as one-quarter of employment.
For example, an individual who passes away at age 28 needs six quarters of employment, while an individual who passes away at age 30 needs eight quarters of employment.
May I receive Social Security benefits as a surviving spouse?
Surviving spouses and ex-spouses have a few different planning opportunities related to Social Security benefits. If you are a parent and take care of your child who is eligible for Social Security benefits, you can claim benefits until your child reaches age 16. If you’re working, your survivor benefits may be withheld due to the Social Security earnings test.
While Social Security benefits for children provide a financial safety net, these benefits weren’t intended to fully replace the earnings potential of their parents. It remains prudent to review life insurance coverage available through work and coverage purchased privately on an annual basis to be sure that minors may continue to make ends meet in the instance of an unexpected loss. A well-constructed estate plan can also outline where assets go, who will oversee the assets and at what ages heirs may take a larger role in managing an inheritance.
