11.1.11.80 Disbursement of an income management account balance of a deceased person

Disbursement of an income management account balance of a deceased person

Where the delegate is advised of a person's death, the residual amount of a person's income management account is to be paid in 1 or more of the following ways:

  • To the legal personal representative (LPR) of the deceased person. For the purposes of SS(Admin)Act section 123WL and section 123WM, an LPR is generally the executor of a person's will, or the administrator of a deceased person's estate. The delegate should first sight evidence of administrator or executor status, such as
    • an original or copy of the deceased person's will, naming the LPR as executor
    • a grant of probate (i.e. a copy of a court order), or
    • letters of administration (i.e. a copy of a court order).
  • To a person/s who is/are carrying out an appropriate activity in relation to finalising the estate or affairs of the deceased person (e.g. paying outstanding bills of the deceased person) regardless of the amount. The delegate will be satisfied that the person/s is/are carrying out these activities if they sight evidence of these activities, such as a receipt or invoice.
  • To the deceased person's nominated bank account which didn't hold any income managed funds, where the deceased had a nominated bank account for their non-income managed social security payments, this may include the bank account of the deceased person's payment nominee.
  • In payment of the deceased person's funeral expenses - either directly to a third party, e.g. the funeral director or as reimbursement to the person who initially paid those expenses. The delegate should sight evidence of these funeral expenses (such as a receipt, or an invoice).
    • Note: This option is to be limited to the expenses incurred directly in relation to the deceased person (such as funeral parlour fees, the cost of a casket, and the transport costs in relation to the deceased, etc), rather than to expenses incurred by people in attending the funeral, cultural activities or a wake.

If the deceased person had provided Centrelink with a nominated bank account for payment, the delegate should first attempt to pay the residual funds into this account as a single lump sum payment. However, if this account is no longer functioning or the deceased person did not have a nominated bank account, i.e. was paid by cheque, then the other mechanisms of payment mentioned above should be utilised.

Residual funds can be disbursed by cheque to a person as long as that person is an LPR or a person carrying out an appropriate activity in relation to finalising the estate or affairs of the deceased person. A payment nominee who has been receiving funds by cheque on behalf of the deceased is likely to satisfy these requirements. Their role as the deceased's payment nominee would, by the nature of that role, mean that they are, or have been, a person who has been carrying out the affairs of the deceased person.

Act reference: SS(Admin)Act section 123WL Payment of credit balances of income management accounts-person dies, section 123WM Payment into bank accounts etc. of credit balances of income management accounts-person dies

Last reviewed: 11 November 2019