Hi,
Upon the death of an annuitant, whereby the monthly annuity payments are supposed to end, does the company have an automatic way of knowing when the annuitant has died? I wonder if they have a connection to social security or something like that.
I’m assuming social security finds out automatically so their SS payments are ended.
I’m wondering if I need to get my mother’s death certificate and contact these two agencies.
Does anyone here have experience with that?
Thanks,
RB
Condolences. It is hard to do all of this stuff while you are grieving.
The funeral home often reports the death to social security. It is recommended that you call social security to make sure the death has been reported and so social security can send out paperwork. In some cases, the final payment must be returned. In some cases, the survivors fill out paperwork to request the final payment.
I called the financial institution who was paying my father’s pension and I followed their instructions.
Call them, report the death, and ask what to do. Every institution has their own way of processing things.
HHP
1 Like
Social Security is normally notified by the funeral home. Calling them to verify is a good idea.
Now for the messy problem, how to stop annuity payments. You didn’t state what agencies. I haven’t dealt with any that are automatically notified. Finding the proper department to notify can be difficult. They will take back payments after death but it isn’t unusual for payments to continue for months.
Obtain two copies of your mother’s death certificate. If you are waiting for the death certificates, contact the companies to find our were to send them and obtain the forms to accompany the death certificate.
With my mother-in-law it took four months for the payments to stop and another month for them to take back the overpayments. My father-in-laws insurance policy with the Air Force was claimed. Silly me, I made the assumption that would also stop his pension. It didn’t. When we figured out we needed to contacted the DFAS, they were rude and difficult. The first statement that “we aren’t Air Force” kept the tone through out all of the dealings with them.
Thanks. I’ll contact them as suggested.
RB
Upon the death of an annuitant, whereby the monthly annuity payments are supposed to end, does the company have an automatic way of knowing when the annuitant has died? I wonder if they have a connection to social security or something like that.
Having worked at a bank, I know that banks get records of deaths from SS. I would presume that insurance companies do that too. However, it can take a month or two for those records to work their way through the system. Because of that, it’s generally a good idea to notify any company that made payments to the deceased of the death.
I’m assuming social security finds out automatically so their SS payments are ended.
Generally, the funeral home that handles the final arrangements for the body will notify the SS Administration for you, as long as you provide the deceased’s SS number to the funeral home. As long as the funeral home does so in a timely manner, that should stop any future SS payments from being made. If, for some reason, SS payments are made to someone who has died, the estate will need to pay them back.
I’m wondering if I need to get my mother’s death certificate and contact these two agencies.
Does anyone here have experience with that?
Sorry for your loss. If the funeral home has notified SS, there is no need for you to contact them. So you just need to confirm with the funeral home that they have done so. However, as mentioned above, it’s probably a good idea to notify any companies who made payments to your mother (pension, annuity, brokerage, etc.) that she has died. Generally, they will require a PDF of the death certificate, but some may require an original.
When my mother died, I notified the company that paid a pension to her. They had already direct deposited the pension payment a couple days after her death, but pulled that payment back out of that account after they were notified. That was
If your mother had an IRA that she was receiving RMD payments (or non-RMD regular payments) from, you should notify the brokerage administering the IRA. The payments need to be stopped so they won’t be income to the estate, and the IRA beneficiaries will get the full account value that they are entitled to. If she was required to take an RMD for the year that she died, but hadn’t taken the full RMD, the beneficiaries will be responsible for taking the remaining RMD amount from the account.
AJ
1 Like
I would presume that insurance companies do that too. However, it can take a month or two for those records to work their way through the system.
It hasn’t been my experience for insurance companies.
Not certain about banks. B of A claimed we never provided a death certificate. Given the number of years that had passed, I don’t know if their statement was true.
My sister’s bank account was frozen when her last Social Security payment was taken back. Most of her utilities were on autopay and I was relying on that for the months it took to obtain court appointment as administrator for her estate.
Funeral homes and mortuaries usually report the death to Social Security. Social Security publishes a “master death file” listing social security numbers of people that have been reported as deceased to them. (And I think there is a supplement listing just the newly reported deaths in the prior month.) Most insurance companies subscribe to this list and check it periodically against the list of people they are paying.
I’m not saying this is going to automatically stop any annuity payments. But the chances are pretty good that the payments will stop.
Still, it’s a good idea for the executor of the estate or other next of kin who are handling the affairs to notify anyone paying an annuity of the death. Much better to get the payments stopped (or changed to survivor benefits) promptly than to let mistaken payments drag on and force the estate to make repayments the executor didn’t expect.
–Peter
1 Like
To anyone who will be involved in administering a person’s estate let me suggest you obtain 100 death certificates and maybe a half dozen more. Everyone will need one and if you don’t have them it takes a while to obtain one. Just my experience and a suggestion to make your life easier.
Regards,
ImAGolfer
1 Like
To anyone who will be involved in administering a person’s estate let me suggest you obtain 100 death certificates and maybe a half dozen more. Everyone will need one and if you don’t have them it takes a while to obtain one. Just my experience and a suggestion to make your life easier.
It use to be that more death certificates were needed. Most financial institutions scan then return the original documents. Only if the certificate has to be mailed is that copy unavailable for a while. 3 to 4 are often sufficient.
Also, if the death is local, all it takes to obtain additional certificates is a trip to the County Recorder’s office.
It use to be that more death certificates were needed. Most financial institutions scan then return the original documents. Only if the certificate has to be mailed is that copy unavailable for a while. 3 to 4 are often sufficient.
When my mom passed about 5 years ago, I got something like 10 death certificates, which turned out to be more than plenty. Sometimes you can get away with sending a photocopy and not an original.
3 Likes
Also, if the death is local, all it takes to obtain additional certificates is a trip to the County Recorder’s office.
1/2 hours’ drive away from here – each way. Longer in rush hours.
To anyone who will be involved in administering a person’s estate let me suggest you obtain 100 death certificates and maybe a half dozen more.
Really? At $25 a pop for each death certificate, that would have cost $2650. As it was, I got 5 and really only needed 4, so I still overspent by $25.
AJ
5 Likes
To anyone who will be involved in administering a person’s estate let me suggest you obtain 100 death certificates and maybe a half dozen more.
Frankly, that’s ridiculous. Just plain silly.
I’d argue that 5-10 will do for most people.
If you have the presence of mind to stop and think a bit in the midst of dealing with your loved one’s passing, take a look at their financial accounts. Count them up. Add in the number of life insurance policies they have that you’ll need to make a claim on. Add in any annuities, and that would be the most I’d suggest getting.
And as has been noted, some institutions will just want to see an original before putting a copy in their files.
–Peter
1 Like
1/2 hours’ drive away from here – each way. Longer in rush hours.
Zero driving if you don’t need the certificate today and can let the vital records office mail them to you. Which plenty can.
–Peter
4 Likes
Sometimes you can get away with sending a photocopy and not an original.
You are very lucky. That wasn’t my experience at all. No one I dealt with would accept a copy.