For deaths after August 1981, the Lump-Sum Death Payment (LSDP) is always $255 based solely on U.S. coverage for the insured deceased. If foreign coverage and totalization are involved, the LSDP may be less than $255.

1. 1. 

   If more than one spouse is entitled to the LSDP under the same priority category of payment, divide the LSDP.

2. 2. 

   If more than one child is eligible for a share of the LSDP, divide the LSDP by the number of eligible children. Carry the quotient to 3 decimal places and round to the nearest penny (round up for one-half penny or more).

3. 3. 

   If, after rounding, the sum of the shares exceeds $255, reduce the share of the last (or youngest) claimant(s) by a penny to make the total LSDP equal to $255.

For LSDP in Totalization Claims see GN 01701.220.

EXAMPLES: 

• •

  Five children are eligible for a share of the LSDP. Each child may receive $51 (i.e., $255 divided by 5).

• •

  Seven eligible children apply concurrently for the LSDP. To compute the share due each child, divide $255 by 7; round the quotient, $36.428, to the nearest penny, $36.43. However, seven times $36.43 exceeds $255 by one cent; therefore, the youngest child would receive $36.42. The other six children would receive $36.43 each.

• •

  Eight eligible children apply concurrently for the LSDP. To compute the share due each child, divide $255 by 8; the quotient, $31.875, calculate to the nearest penny, $31.88. However, eight times $31.88 exceeds $255 by four cents; therefore, the four youngest children would receive $31.87. The other four children would receive $31.88 each.