Your Questions About Factors Affecting your Social Security Benefits

03/06/09

Q: I own a business, but do not run it myself. Would I still be eligible to receive Social Security benefits?

A: The SSA defines the word disability as being unable to complete any substantial activity that will earn you a living. They determine substantial gainful activity according to the National Average Wage Index, which gives a dollar amount per month. The SSA considers an applicant to be working or employed at any time the that person "is the owner or part owner of a trade or business even if he or she does not actually work in the trade or business or receive any income from it."

Your business income may affect your social security benefits. If that income goes over the predetermined substantial gainful activity (SGA) level, the SSA may consider it a substantial income. The SSA determines this SGA level by doing a comparison of the income of your business to the income you received before you became disabled, as well as to the income of a healthy individual doing the same business.

Q: If I pass away while I am in the Social Security Disability application process, where does my claim go?

A: The SSA states that when an individual who was or could have been eligible to receive social security benefits becomes deceased, surviving family member can request a Lump Sum Death Payment. This means that, if you were to die in the process of applying for social security benefits, your survivors may make a case for the social security benefits you may have earned after the waiting period. In order to receive the lump sum payment, your survivors must prove that you would have qualified for social security disability in the month of death.

Lump Sum Death Payment of social security benefits is available only to particular surviving family members. As part of the application process, the SSA will request information about the deceased's Social Security record and application (if they applied for social security benefits). The SSA will also want to see information about the deceased's overall disability, starting at fourteen months before death.

Q: What will happen to my social security benefits, once I am already on them, and I die?

A: A person who has worked and paid social security taxes may be eligible for survivor's benefits upon their death. For one's family to be eligible for survivor's benefits, up to 10 years of work is needed, depending on one's age. Survivors' social security benefits can be paid to:

• A widow or widower, who will receive full benefits at retirement age, and reduced benefits starting at 60 • A disabled spouse aged 50 or over • Unmarried children under 18 (or up to 19 if attending high school) • Currently disabled children who were disabled at less than 22 years of age • Dependent parents over 62 years of age.