Social Security Questions? Ask a Social Security Expert
Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.
I agree with you that the system is not fair (or even easy to understand) but if a person receiving Social Security benefits dies SSA can’t pay benefits for the month of death.
That means if the person died in August, the check received in Sept (which is payment for August) must be returned.
When the payment is by direct deposit, SSA advises to notify the financial institution as soon as possible so it can return any payments received after death.
Even on the last day of the month unfortunately.