Legal Question in Tax Law in New York

If mom was the beneficiary.of my deceased father's severance pay and company claimed her as an employee, how does she fill out the Social Security Form OMB No. 0960-0565?

Asked on 11/20/17, 8:05 pm

1 Answer from Attorneys

Richard Bryan Richard Bryan Attorney PC

There is no such concept as a beneficiary for a decedent's severance pay. Dad's final wages are part of his estate; they don't automatically go to mom. This is called "income in respect of a decedent," or IRD. Income earned by someone before they died, but paid after they died.

If the company is making dad's final paycheck out to mom, they're doing it wrong. Regardless, the Social Security form you referenced is inapplicable because dad's final wages are not "special wage payments" to mom, which is what the form is used for.

Good luck.

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Answered on 11/21/17, 5:58 am

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