Social Security benefits for the child of a deceased parent

The grief a child experiences after losing their parent or guardian is enormous. On top of this hardship, the loss of a breadwinner can strain household finances. Fortunately, families affected by the death of a parent may find some support through Social Security benefits.

While it's hard to think about exploring financial resources at this time, this help can add stability to a child's life. Here are key details to know.

Social Security is perhaps best known for providing retirement benefits to individuals who paid payroll taxes during their working years. However, the federal program also provides payments to other financially vulnerable individuals, including family members of a deceased provider. Those who qualify for survivor benefits may include spouses, children, stepchildren and others who are dependent on the individual's income.

For young or disabled children, survivor benefits provide a valuable financial safety net after the loss of a parent. Eligible recipients receive monthly cash payments based on the deceased worker's income history.

Eligible beneficiaries may include biological children of the deceased parent as well as stepchildren, grandchildren, step-grandchildren and legally adopted children. The child can receive survivor benefits if they're unmarried and either:

• Under the age of 18
• Under the age of age 19, but still in high school full time

In most situations, the parent must have worked and paid into Social Security for their child to qualify for survivor benefits. The amount of time the parent needs to have worked for their child to qualify for Social Security survivor benefits depends on their age when they died. The younger the parent was, the fewer years of work are required. The maximum length of time a parent must have paid into Social Security for survivor benefits to kick in is earning 40 credits, which is equivalent to about 10 years.

However, a child may qualify if their parent was receiving Social Security disability benefits at the time of their death. If your family has unique circumstances like this, you should contact the Social Security Administration (SSA) directly to verify eligibility.

Adult children with a qualifying disability can receive survivor benefits for life. Typically, eligibility lasts until you're no longer disabled or marry, although you can continue to receive benefits if you have a disabled spouse.

To qualify for survivor benefits into adulthood, the disability must have begun before your 22nd birthday. Social Security guidelines require you to provide evidence of the disability prior to receiving payments.

An eligible child can receive 75% of their parent's basic retirement benefit, although that percentage may be reduced if the deceased had more than one child (see below). The parent's benefit amount depends on their earnings and how long they worked. The longer they worked, the larger the potential benefit based on account earnings. If you've paid into the program through payroll taxes, you can find your projected retirement benefit on either your Social Security Statement or by creating an account on the my Social Security website.

Suppose, for example, that a parent passed away after working for 20 years. Based on their wage history, the parent was eligible to receive a basic Social Security benefit of $1,500 when they reached full retirement age. Upon their death, an eligible child of this worker normally will receive a monthly benefit of $1,125 ($1,500 x 0.75).

Because each beneficiary is eligible for a predetermined percentage of the deceased parent's retirement, a family payout can—and often does—exceed what the parent would have received at their normal retirement age.

However, there is a limit to what a family can receive. In most cases, the maximum is between 150% and 188% of the full retirement amount. Once the family reaches the limit, the SSA proportionately decreases payments for each beneficiary.

The more beneficiaries there are, the more likely the family is to approach the maximum. If this is the case for your family, consider speaking with your local SSA representative for a better estimate of each child's potential monthly payment.

In addition to a monthly payout, a child may be able to receive a lump-sum death payment. The death benefit is a one-time deposit of $255, usually paid to the surviving spouse. When there is no eligible spouse, the child or children of the deceased may qualify for the benefit if they apply within two years of the parent's death.

You can apply for child benefits by calling or visiting your local Social Security office. The SSA does not allow online applications for survivor benefits.

The agency may request several documents to verify identities and other details, including:

• Death certificate
• Parent and child's Social Security numbers
• Child's birth certificate or proof of adoption
• For a stepchild, proof of the parent's marriage to the child's natural or adoptive parent

As the surviving spouse or child's primary caregiver, you also may be eligible to receive survivor benefits. The SSA may ask you to provide your birth certificate, proof of U.S. citizenship and other documents verifying your situation. The SSA offers a complete list of what you may need to apply for child survivor benefits.

If you have trouble finding the requested documents, you still can call and schedule an appointment. Your local SSA representative will help you obtain the information you need.

When you file an application for survivor benefits, it can take several weeks for the SSA to approve the child's benefits—and if the SSA is overloaded with requests, the process can take months. Therefore, you should apply for survivor benefits as early as possible to receive your first check faster.

Once approved, the SSA follows the following monthly payment schedule based on the deceased's birthday:

• For birthdays falling between the 1st and 10th of the month, payments are made every second Wednesday.
• For birthdays falling between the 11th and 20th of the month, payments are made every third Wednesday.
• For birthdays falling between the 21st and 31st of the month, payments are made every fourth Wednesday.

Losing a loved one is difficult—particularly as a child, and if the loved one was a central provider for the family. But securing the child's future still is possible after they lose a parent, freeing up more space to grieve.

With the right support, you can help maintain your family's most important financial goals. However, it can be tough to focus on reaching this level of financial clarity when grieving. Planning ahead can make guiding yourself and others through this time a little easier.

A financial advisor can help you explore Social Security benefits and eligibility. Connect with a Thrivent financial advisor for these and other estate management needs.