Tax Implications of Being Lost Overboard Alone

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caprice 1050
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Tax Implications of Being Lost Overboard Alone

This  is a subject that has been bothering me for a few years and I can not get an accurate answer from my former employer or the U.S. Government. I often sail single handed, sometimes even at night. My question is if I fall overboard and drown when will my pension and social security stop. I asked my former employer's retirement division which is the State of Connecticut.  They replied they do the same as the Government Social Security Pension does which would stop payment as my date of death.
 
According to our City Medical examiner he would put the date of death as the date my body was found. If my body is never found the Court would determine my date of death which might take years. In the mean time my pension and social security checks would continue being direct deposited into my checking account to which my son is my co-owner, therefore he can withdraw the funds every month and share the money with my other kids. Now here is my big question. If my body is found a few months or years later and it is obvious that I drowned would my heirs have to refund my pension checks to the State of Connecticut and the U.S. Government? Also, would my kids have to file income tax in their name or my name for the deposited funds?
 

__/)__/)__/)__Capt Mike__/)__/)__/)__
Punta Gorda Florida
1990 Std WK M35 Hull #1050

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newguy
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If SSA payments continue after your death and are not returned, technically this is overpayment.  If the SSA determines overpayment, then by the book they would seek recovery.  It might be that the only avenue they have is to recover from whomever renegotiated the checks.  At that point, they also might share this information with the IRS.

The answer to the tax question is that as long as you're alive, you should file a return on the SSA benefits, regardless of how the money is used.  As long as you're alive, the IRS allows your son to negotiate your checks on your behalf without claiming this as income.  Once you die though and if the payments continue to be negotiated by your son, the IRS could make a case for the overpayments to be your son's income.

Nick Caballero
Retired C36/375IA Mk II Technical Editor

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Capt. Sam
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I would rather see you wear an auto-inflate PFD, with a strobe light, water proof hand held VHF and a PLB attached, and die in your sleep at home.
Good luck.
Sam
 

Capt. Sam Murphy
1994 Catalina 36, Hull 1327
Shoal draft, two cabin model.
Panama City, Florida

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LCBrandt
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Mike, I don't know what you have in mind, but be aware that there is now a public 'paper trail' on this website.  ; )
 

Larry Brandt
S/V High Flight #2109
Pacific Northwest, PDX-based
2002 C-36 mkII SR/FK M35B
 

caprice 1050
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I just was curious. These are the sort of things one thinks about when he is sailing solo and has no one to talk to. I guess I should set up a TV and watch DVD's. I used to pick up Books on Tape when driving long distances alone maybe that would be good for solo sailing also. My late wife used to knit while steering the sailboat with her feet. When we sailed from Florida to New England she knitted a gift for everyone we were going to visit alone the way. She even gave away some wash cloths she knitted to Dock Attendants.

__/)__/)__/)__Capt Mike__/)__/)__/)__
Punta Gorda Florida
1990 Std WK M35 Hull #1050

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LCBrandt
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Mike, I was joking of course. But I am headed to Alaska this year, mostly solo, so I'm going to have a lot of quiet time for thinking, too.

Have a great summer.

Larry Brandt
S/V High Flight #2109
Pacific Northwest, PDX-based
2002 C-36 mkII SR/FK M35B
 

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