Lump sum payment on death

When a veteran with a partner or a dependent child dies, the surviving family may be entitled to a lump sum payment on death.

The lump sum payment on death is made to assist with funeral costs. It is paid separately from any payment for Funeral Expenses the client may also be entitled to under the Veterans' Support Act 2014.

When a lump sum payment is made on death for a Veterans Pension client, there is no entitlement to a Funeral Grant under the Social Security Act 2018.

Terminal benefit is deducted from the lump sum payment.

There are 3 different types of lump sum on death payments and they are all non-taxable:

• death of a veteran who was getting a War Veterans Allowance before 1 April 1990 (a World War I veteran)
• death of any other veteran
• death of any veteran's partner

If the veteran had less than 52% disablement pension under the Veterans' Support Act 2014 or less than 70% war disablement pension under the War Pensions Act 1954 their partner or spouse is not entitled to a lump sum on death payment.

The lump sum payment is not payable when there is no surviving partner or dependent children.