Avoiding a debt

When a single client (with no children) dies, payment generally stops from the day after the date of death. You must take all possible steps to stop payments from this date.

When payment cannot be stopped from the day after the date of death there is discretion to continue payment for up to 28 days after the date of death. You can use this discretion to stop payment from the first available date, that is, the earliest date that you can stop payments from so that no overpayment is established.

If the period between the date of death and the first available date to cancel payment from (to avoid creating a debt) is more than 28 days, you will have to establish an overpayment from the 29th day after death.

However, when there has been a deliberate intent to delay advising Work and Income of the client's death you should stop payment from the day after the date of death and establish an overpayment.

Note under no circumstances can payment continue for more than 28 days after the date of death.

You will need to cancel New Zealand Superannuation payments from the earliest possible date (but not more than 28 days after the date of death) in SBFTZ. However, the date of death entered in CMS must be the client's actual date of death. You must make full notes in CMS of your actions.

Wherever possible you should enter the next of kin or the executor of the deceased's estate on SWIFTT.

For more information see:

• Terminal benefit for a single client