I recently read that more than half of the children in the US who have lost a parent are not receiving Social Security Survivor benefits, presumably because the surviving parent or guardian is not aware of them. Because of that, I wanted to write these FAQs:

Does my child qualify for Social Security Survivor benefits?

If your late spouse/partner worked long enough in a job where they paid Social Security taxes, your child together may qualify for Social Security Survivor benefits if s/he is unmarried and:

• Younger than age 18, or
• Younger than age 19 and still a full-time high school student, or
• Age 18 or older with a disability that began before age 22

Under certain circumstances, the Social Security Administration (SSA) may also pay benefits to a stepchild, grandchild, step-grandchild, or adopted child of a deceased worker.

How much can my child receive?

A child can receive up to 75% of the deceased parent’s basic Social Security benefit. However, if there are three or more children receiving benefits in a family, the maximum amount of money they can receive in total is from 150% to 180% of the parent’s full benefit amount. If the total amount payable to all family members exceeds this limit, the SSA reduces each child’s benefit proportionately until the total equals the maximum allowable amount.

How does my child apply for benefits?

Call the SSA at 1-800-772-1213 and tell the agent you want to set up an appointment to apply for your child’s Survivor benefits. They’ll schedule the appointment, determine whether it’ll be on the phone or in person at your local Social Security office, and tell you what information to bring. If you’re also applying for benefits for yourself, you can do both at the same time.

How must my child’s benefits be used?

According to the Social Security Handbook, payments must be used for “the use and benefit of the entitled individual.” Benefits must be either:

• Spent for the beneficiary’s current and reasonably foreseeable needs, or
• Saved or invested for the beneficiary, after current needs have been met

Current needs include housing, food, clothing, utilities, medical care and insurance, dental care, personal hygiene, education, and the rehabilitation expenses of the disabled beneficiaries.

If your child’s current needs are covered and you have funds left over, you can set them aside for definite foreseeable needs such as your child’s education or rehabilitation if disabled. For example, I’ve invested my daughter’s Survivor benefits in a 529 account to pay for her college education. The SSA has a lot to say on how to invest funds that aren’t used for current needs, so I’ll write more about that in a future blog post.

When do benefits stop?

Except for children who were disabled before the age of 22, benefits for children generally stop when the child turns 18 or graduates from high school, whichever is later. Three months before your child’s 18th birthday, the SSA will send you a notice letting you know that benefits will end when your child turns 18. If your child is still in high school, follow the instructions in the notice and complete a statement of attendance certified by a school official so benefits continue. The benefits will usually continue until your child graduates or until 2 months after they reach age 19, whichever comes first.

Disclaimer: I am not an expert in Social Security benefits and am merely passing along information based on my understanding of them. My source of information is the SSA website.