If the employee was survived by a widow(er) who was living with the employee, the entire lump-sum death payment is paid to the widow(er).
If no widow(er) qualifies and all of the employee's funeral expenses have not been paid, the lump-sum death payment is paid to the funeral home. If the unpaid funeral home expenses are greater than the lump-sum death payment, the entire lump-sum death payment is paid to the funeral home.
If the unpaid funeral expenses are less than the lump-sum death payment, only the amount of the lump-sum death payment equal to the unpaid expenses will be paid to the funeral home.
If there are no unpaid funeral home expenses, or if the unpaid expenses were less than the total lump-sum death payment, the remaining amount of the lump-sum death payment can be paid to the person(s) whose money was used to pay any portion of the burial expenses. A "person" can include:
- an individual;
- a partnership;
- a trust;
- a corporation;
- a government unit;
- the estate of the employee.
If more than one person pays the burial expenses, the lump-sum death payment will be paid first to the person who paid the funeral home expenses. If any of the lump-sum death payment remains, the remaining portion will be paid in the following priority:
- The person who paid the grave opening and closing expenses.
- The person who paid for the burial plot.
- The person who paid any remaining burial expenses.
If more than one person pays the same type of expense, a share of the lump-sum death payment will be paid to each person who paid the expenses. The shares will be proportional to the amount of the expenses paid by each person. Under no circumstances will any person receive a lump-sum death payment which is greater than the amount which was paid by that person.