The funeral home will notify Social Security when someone dies.

The two most common falsehoods about Social Security are these:

• it will contribute a significant amount that can be used to pay for the funeral, and 
• there is a payment for anyone who dies.

The truth is that the current death benefit can indeed be used to help pay for the funeral, but the amount is only $255. The second truth is that the Social Security benefit is paid only to a surviving spouse, or in special cases, to eligible dependent children. 

If you are a spouse or dependent child of someone who died who was still working or had worked, you may be eligible for Social Security benefits. If the deceased was receiving Social Security, you may have questions about your eligibility for benefits or how your benefit will change if you're already receiving one. Call the Social Security Administration’s toll-free number, 1-800-772-1213 from 7am-7pm weekdays.

You can also visit their website, www.ssa.gov/pubs/10008.html.  This website is excellent and offers a great deal of information about the benefits and eligibility.  It also offers an opportunity to do things online, such as determine your eligibility and/or begin the application process for benefits you may be entitled to.