SSR 61-55. GOOD CAUSE FOR EXTENSION OF 2-YEAR LIMITATION FOR FILING APPLICATION FOR LUMP-SUM DEATH PAYMENT -- INCOMPLETE INFORMATION; WRITTEN STATEMENT CONSIDERED APPLICATION FOR BENEFITS

R. was appointed co-executor of the estate of a worker who died January

26, 1957. In August 1957, R telephoned the local Social Security district

office to ask what steps were necessary to receive a lump-sum death

payment on the worker's earnings record. He explained that there was no

surviving widow, that the estate had no assets from which he could pay the

burial expenses immediately, but that the estate had "choses in action"

and, when a settlement was reached, all claims, including the one for

burial expenses, would be paid.

R received a letter from the district office dated August 23, 1957, which

stated that, when burial expenses had been paid, R should furnish

receipted bills therefor, and a certified copy of his appointment as

executor, and that then arrangements to secure an application for the

lump-sum death payment would be made.

In a letter mailed January 20, 1961, R forwarded the receipted funeral

bills to the district office. He stated in his letter that he had just

paid the burial expenses and that, upon further instructions concerning

the lump-sum application, he would forward a certified copy of his

appointment papers. The district office reply, mailed January 27, 1961,

informed R that, generally, an application for a lump-sum death payment

must be filed within 2 years from the date of death of the worker but that

this 2-year limitation for filing may be extended for an additional 2

years if there is good cause for failure to file within the initial 2-year

period. In further correspondence R explained that the district office

letter of August 23, 1957, had led him to believe that an application

could not be filed until the burial expenses had been paid. R filed a

formal application for the lump-sum death payment on March 20, 1961.

may be extended for an additional 2

years if there is good cause for failure to file within the initial 2-year

period. In further correspondence R explained that the district office

letter of August 23, 1957, had led him to believe that an application

could not be filed until the burial expenses had been paid. R filed a

formal application for the lump-sum death payment on March 20, 1961.

The question to be resolved is whether R filed his application for the

lump-sum death payment within the time limitation prescribed by the Act.

All other requirements for entitlement to the lump-sum death payment were

met.

Section 202(i) of the Social Security Act, as pertinent here, provided

for the payment of a lump-sum death payment, in cases where there was no

surviving spouse who was living in the same household with the worker at

the time of his death, to the person or persons equitably entitled to the

payment by reason of having paid burial expenses of the deceased insured

worker, to the extent and in the proportions that he or they shall have

paid those expenses; subject to the requirement that an application for

the lump-sum death payment must have been filed by such person or persons

within 2 years of the date of death of the worker. Under amendments to the

Social Security law enacted in September 1960, a lump-sum death payment

may, under certain circumstances, now be paid to the funeral home where

some or all of the burial expenses have not been paid; but an application

must be filed within the 2-year period.

Section 202(p)(2), as pertinent here, provides that where it is shown to

the satisfaction of the Secretary that there was good cause for failure to

file an application for a lump-sum death payment within the initial 2-year

period as required by section 202(i), such application shall be deemed to

have been filed within such period if it is filed within 2 years following

such period.

iod.

Section 202(p)(2), as pertinent here, provides that where it is shown to

the satisfaction of the Secretary that there was good cause for failure to

file an application for a lump-sum death payment within the initial 2-year

period as required by section 202(i), such application shall be deemed to

have been filed within such period if it is filed within 2 years following

such period.

Regulations No. 4, § 404.617(a), as pertinent here, provides that "good

cause" may be found for failure to file an application for a lump-sum

death payment within the initial 2-year period when the claimant

establishes that such failure was due to circumstances beyond his control

or was due to incorrect or incomplete information furnished him by the

Department.

Regulations No. 4 § 404.601(a) states that the term "application" refers

only to an application on a form prescribed by the Social Security

Administration and includes an application for a lump-sum death payment.

However, § 404.613(a) states that where a claimant files a written

statement which indicates an intention to claim monthly benefits, a

recomputation of benefits, a lump-sum death payment, or a period of

disability and such statement bears his signature, the claimant shall,

unless he indicates otherwise, be deemed to have "filed an application"

therefor if he files an application on a prescribed form within 6 months

from the date the Bureau of Old-Age and Survivors Insurance notifies him

in writing that an application on a prescribed form is necessary.

In the present case, R can be entitled to the lump-sum death payment only

if he had good cause for failure to file the application within 2 years

after the worker's death, and did file the application within 4 years

after the date of death.

6 months

from the date the Bureau of Old-Age and Survivors Insurance notifies him

in writing that an application on a prescribed form is necessary.

In the present case, R can be entitled to the lump-sum death payment only

if he had good cause for failure to file the application within 2 years

after the worker's death, and did file the application within 4 years

after the date of death.

R had contacted the district office concerning a lump-sum death payment

about 6 months after the worker's death. Because erroneously he was given

to believe that he could not file application for a lump sum until the

burial expenses were paid, and because he was unable to pay the expenses

within 2 years after the worker's death, good cause is found for his

failure to file an application within the initial 2-year period as

required under section 202(i).

Although the formal application for a lump-sum death payment was executed

and filed by R on March 20, 1961, more than 4 years after the worker's

death, R's letter of January 20, 1961, was received by the Administration

less than 4 years after the worker's death. This letter, inquiring about

the lump-sum death payment and signed by R, is a written statement showing

an intent to claim the lump-sum death payment. Also, the formal

application was filed within 6 months from the date thereafter that the

Bureau notified him that an application on a prescribed form was

necessary. It is held that R is deemed to have filed application on

January 20, 1961, and this application is deemed to have been filed within

2 years after the worker's death. Accordingly, R is entitled to the

lump-sum death payment on behalf of the worker's estate.