Final answer:
The Social Security Death Benefit is payable to the surviving spouse, and can also be claimed by eligible children if there is no surviving spouse. This system is separate from state intestacy laws and provides a lump-sum benefit to assist with funeral costs and immediate financial needs after a death.
Step-by-step explanation:
The Social Security Death Benefit is payable to the surviving spouse. If a surviving spouse is not present, the payment may go to children who are eligible. The benefit is not directly payable to the estate, the next of kin not qualifying as a surviving spouse, nor a named beneficiary like in the case of a life insurance policy. Instead, the Social Security Administration provides this lump-sum death benefit to help cover funeral costs and some of the financial burden immediately after a death.
When a person dies without leaving a will, this is known as dying intestate, and their assets are distributed according to state laws. The Social Security system, however, has its own set of rules for distributing certain benefits. The program also includes disability payouts for workers incapacitated due to disability and is expected to last at least twelve months, as well as Supplemental Security Income for those with a significant disability, the elderly, and others meeting the income threshold requirements.