Any social security & tax experts out there??

[mom-from-missouri]

I have an appointment, but ss can't get me in for ovr 2 weeks, and they wont tell me anything over the phone.......thought some of you might have some insite.

My children's father (I am remarried-he was my ex) passed away. The children are minors. Can they collect on their fathers social security--???

He has not paid into it for the past 15 years. Instead, was self employeed for the first 6 of those years (should of paid into it but didn't). Then, the last 7 years or more, he has been on ssi for low income. he was disabled, but they would not approve for him to get ssi disability because he had not paid into it.......

he was in a self assisted living facility on ssi low income, food stamps and state insurance.

also, when he got sick, his business failed, and he owes the state $29,0000 in taxes and they have a lein.

his will leaves his vehicle, 3 rings, tv, and such to the girls. does that mean the state will get it instead? He didn't have much--only what fit into the studio apartment @ self assisted living. what about items my daughters had there from their visits?? they had clothes, a ds and stuff there...

I can't get into talk to his attorney for over a week.

This waiting is driving my kids nuts, not knowing if we can afford a funeral for him or not because we don't know what may be coming in to offset the expense.

any ideas???

[Joan.of.the.Arch]

I wish I knew the answers. But I have an idea who might know about it and help you quickly--like today. A funeral home. Those folks usually know a lot about these things and are accustomed to helping families figure out where the money for a funeral can come from. Some ministers will know much about it, too, just through years of experience. I'm sorry for your family, especially your girls.

[artwest]

Since you did not mention a life insurance policy, I am assuming there is none.

As I understand it, what you own goes for what you owe. So unless his vehicle is worth a large amount, it looks like the girls won't get anything. Social Security only pays $255 for funeral expenses.

Funeral costs can vary depending many factors. It is my understanding that cremation is the cheapest option.

[YULACU]

Found this on the SSA Website
"How do I earn survivors insurance?
As you work and pay Social Security taxes, you earn credits toward your Social Security benefits. The number of years you need to work for your family to be eligible for Social Security survivors benefits depends on your age when you die. The younger you are, the fewer years you need to work. But no one needs more than 10 years of work to be eligible for any Social Security benefit.

Under a special rule, if you have worked for only one and one-half years in the three years just before your death, benefits can be paid to your children and your spouse who is caring for the children."

My inclination is that if he was on SSI, that means he didn't have enough "covered quarters" paying into the system otherwise he would have been granted SSD instead of SSI. Survivors insurance also depends on an individual paying into the system.

[maat55]

From what I have read on the subject his estate will be liable for his debts and taxes.

His SS should be separate from the estate. If he has paid in more than 10 quarters, he is eligible for SS which means his minor children will be eligible for surviver benefits.

Benefits For Children

[mom-from-missouri]

He did pay more than 10 quarters. He worked and paid into it from 1968 thru 1996. He stopped paying into it in 1997.

What happens to my daughters property that was in his apartment? Do they loose there stuff too??

[YULACU]

Maat, I think you mean 10 years instead of 10 quarters. I didn't realize he previously paid into the system that long so disregard my previous response. Although he wasn't "currently insured," which would explain why he received SSI rather than SSD, he was "fully insured" because he payed into the system for 40 quarters (10 years). Survivor benefits should be paid in that instance.

[mom-from-missouri]

YULACU I hope you are right. He was unable to pay child support, so any help now to beef up their education funds would be great. I was told it would all have to be spent, not saved. But, I could spend their money, then increase their savings by the same amount--instead of me buying their shoes, they can buy their shoes then I can put my budgeted shoe money for them into their college funds....
Any idea what this amount may be per child? I know when I was in school, a friend of mine got it and it was around $200 a month. Of course, that was 30-40 some years ago..

[mom-from-missouri]

Originally Posted by artwest

Since you did not mention a life insurance policy, I am assuming there is none.

I was told that even if there was an insurance policy, it became the property of the beneficiary and was untouchable.

[jpg7n16]

Originally Posted by mom-from-missouri

I was told that even if there was an insurance policy, it became the property of the beneficiary and was untouchable.

My understanding is that this statement is highly dependent on WHO owned the policy. If you owned the policy on his life, with the kids as beneficiary, or if a trust owned the policy - then it is not part of his estate - and therefore not subject to any liability his estate may owe. However, if HE owned the policy, it would be subject to normal rules of estate liquidation.

Bank accounts have beneficiaries on them too, but no one thinks "oh, well my bank account automatically passes to my beneficiary upon death, so you can't touch this money." It's part of your estate. It pays for what is owed on the estate, with the remainder passing to the beneficiary.

Does Life Insurance Have to Be Used to Pay a Deceased Person's Bills?



I agree with Matt's post above (except that it should read 40 quarters, not 10). You are talking about 2 separate issues.

#1) Will the children qualify for survivor's SSI payouts? and
#2) How will his estate pay for the tax liability and lien he owes?

Neither answer is dependent on the other.

For #1, he worked more than 40 quarters, so he should be considered fully insured and they would get their normal payout.

For #2, you should either speak with his attorney, or an estate attorney in your area. If he can't meet you soon enough, find someone who can.



You may even consider speaking with the funeral home of your choosing. I would bet that more people don't plan for things like this than you realize. So they're probably pretty familiar with the process of scheduling a funeral when no one knows what will happen.

[maat55]

Originally Posted by YULACU

Maat, I think you mean 10 years instead of 10 quarters. I didn't realize he previously paid into the system that long so disregard my previous response. Although he wasn't "currently insured," which would explain why he received SSI rather than SSD, he was "fully insured" because he payed into the system for 40 quarters (10 years). Survivor benefits should be paid in that instance.

You are right, it is 40 quarters. I mixed up the ten years with ten quarters.

[mom-from-missouri]

We finally got in for our appointment. The kids did qualify, but at a "prorated" rate. If he had paid into it at the proper rate, they would have gotten 4 times the monthly amount. But, this will be enough providing half goes into savings, 1/4 goes to me for their daily expenses, and 1/4 we hold back for 4H and church camps, sports fees, music lessons and such.

[creditcardfree]

Glad you have things resolved. Good plan for the money, too.