Understanding Federal Charges for Collecting Social Security Benefits After a Spouse Dies
The death of a spouse is emotionally overwhelming and often comes with complicated legal and financial responsibilities.
One of the most critical—and commonly misunderstood—obligations is notifying the Social Security Administration (SSA) upon a beneficiary's death.
Failing to report a death and continuing to receive Social Security payments is not a harmless oversight. Under federal law, this conduct may constitute Social Security fraud, a serious offense that can result in federal felony charges, prison time, restitution, and substantial fines.
Eisner Gorin LLP is here to help. Schedule your consultation at (818) 781-1570 or contact us here.
Is It Illegal to Collect Social Security Benefits After Someone Dies?
Yes. Continuing to receive Social Security payments after a beneficiary's death—without notifying the SSA—is considered fraud, even if the money is deposited automatically and even if the surviving spouse believes they are “entitled” to it.
Social Security fraud occurs when a person knowingly provides false information or intentionally withholds material facts to obtain federal benefits. A beneficiary's death is a material fact that must be reported.
Common Example of Post-Death Social Security Fraud
The most common scenario involves:
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A spouse passes away
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Social Security payments continue via direct deposit
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The surviving spouse does not notify the SSA
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The funds are spent or retained
This conduct is frequently prosecuted as theft of government funds, even when no Social Security number or identity was stolen.
What Federal Law Applies?
18 U.S.C. § 641 – Theft of Government Property
Most post-death Social Security fraud cases are charged under 18 U.S.C. § 641, which criminalizes the knowing conversion or retention of federal funds.
Under this statute, Social Security benefits are considered property of the United States government. Continuing to accept payments after a death qualifies as unlawful conversion of federal money.
Potential Criminal Penalties
Penalties depend on the total amount of benefits improperly received.
If the Amount Exceeds $1,000 (Felony)
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Up to 10 years in federal prison
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Fines up to $250,000
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Mandatory restitution to the government
If the Amount Is $1,000 or Less (Misdemeanor)
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Up to 1 year in federal jail
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Fines up to $100,000
Additional Consequences
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Wage garnishment
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Federal liens
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Permanent federal criminal record
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Immigration consequences for non-citizens
Survivor Benefits vs. Fraud: What's the Difference?
It is legal for surviving spouses and children to receive survivor benefits, but only after proper notification and approval by the SSA.
Eligible survivors may receive:
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A one-time $255 death benefit
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Ongoing survivor payments (if qualified)
However, you cannot continue receiving the deceased person's benefits under their name or claim without authorization.
Defenses to Social Security Fraud After a Death
Not every accusation results in a conviction. Federal prosecutors must prove intent.
Common Legal Defenses Include:
Lack of Intent
The government must show that you knowingly and willfully withheld the death information. Honest mistakes or confusion may defeat this element.
Automatic Deposits / Joint Accounts
If funds were automatically deposited into a shared account and not knowingly converted, intent may be disputed.
Misunderstanding Survivor Benefits
Confusion about survivor eligibility or SSA procedures may undermine criminal intent.
Voluntary Repayment & Cooperation
Promptly reporting the error and repaying benefits can significantly reduce penalties and, in some cases, prevent charges.
What Should You Do If This Applies to You?
If you failed to report a spouse's death and continued receiving Social Security benefits:
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Stop using the funds immediately
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Notify the SSA as soon as possible
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Consult a federal criminal defense attorney immediately
Early legal intervention can make the difference between repayment and dismissal, or between federal prosecution and dismissal.
Federal Defense for Social Security Fraud Allegations
Federal prosecutors aggressively pursue Social Security fraud cases, even when the underlying conduct appears minimal or emotionally driven. A skilled federal defense attorney can:
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Analyze whether criminal intent exists
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Communicate with federal investigators on your behalf
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Negotiate restitution-based resolutions
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Seek dismissal or reduction of charges
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Protect you from unnecessary incarceration
Speak With a Federal Criminal Defense Lawyer
If you are under investigation or concerned about Social Security payments received after a death, do not wait.
Knowing how restitution is calculated, where it can be challenged, and what legal asset protection options exist is as crucial as the criminal defense process.
Eisner Gorin LLP is a nationally recognized federal criminal defense law firm based in Los Angeles, representing clients across the United States in Social Security fraud and federal theft cases.
📞 Call 818-781-1570 for a confidential case evaluation.
