Recovering debts from a deceased customer's estate 107-05090020

Has the death action been completed?

• Yes, go to Step 2
• No:
• record the executor’s name, address, and contact details on the Death and executor information (DEA) screen in Process Direct or Death/Executor (DEA) screen in Customer First
• to notify that the death action can now be completed. Use Fast Note - select Auto text, use Debts > Updates > Complete death action
• if applicable, include an executor reference number if the estate is managed by a Solicitor or Trustee, any relevant information the third party or executor provided about the deceased customer's estate and
  information available on the record including scanned documents

Go to the Death and executor information (DEA) screen in Process Direct or Death/Executor (DEA) screen in Customer First to locate the date of death.

Check the screens listed below to see if a DRC Advice of account to executor (Q080) letter has been sent:

• History Summary (HS) screen
• Document List (DL) screen
• Key Dates (OPKD) screen
• Scanned documents

Locate archived letters and records through the Archiving and Culling Engine (ACE).

Have 4 weeks passed since the death of the customer?

• Yes, and the DRC Advice of account to executor (Q080):
• has been issued, see Step 1 in Table 2
• has not been issued, go to Step 3
• No:
• if applicable, write off any debts managed in Process Direct
• temporarily write off the debt using code Deceased Awaiting Estate for 4 weeks from date of death. See Temporary write off of Centrelink debts
• DOC the temporary writes off using the W/O Awaiting Estate Fast Note
• finalise the recovery activity on the Activity List (AL) screen

Investigate and action any undetermined debts before proceeding with recovery action. Do not contact the executor or third party before this is completed.

Is there an undetermined debt on the deceased customer's record?

• Yes, investigate and finalise the debt. See:
• Requesting refunds and raising debts for deceased customer
• Processing Family Tax Benefit (FTB) lump sum claims
• No, go to Step 4

Is the outstanding debt balance less than $200?

• Yes, see Step 8 in Table 2
• No, go to Step 5

It may not be cost effective to pursue recovery if the executor has:

• initiated contact before the DRC Advice of account to executor (Q080) letter is sent, and
• confirmed there are insufficient funds in the deceased customer's estate to pay the outstanding debt balance

Review previous actions by checking:

• HS screen
• DL screen
• OPKD screen
• Scanned documents

Locate archived letters and records through the Archiving and Culling Engine (ACE).

Has the executor advised there are insufficient funds in the estate to pay the outstanding debt balance?

• Yes, see Step 8 in Table 2
• No, go to Step 6

Check for the executor’s name and contact information on the customer's record in the following locations:

• DEA screen
• Document Tools (scanned documents)
• DL screen
• State probate or probate advertisement websites for listed executors progressing probate (see the Resources page)

Note: staff do not need to request proof of executor status:

• where it has already been scanned to record, or
• where it has been recorded on a DOC that was sighted during the coding of DEA screen

Is the executor information available?

• Yes, go to Step 9
• No, go to Step 7

Staff with the appropriate delegation may attempt to contact a third party to obtain details of the executor.

A Public Interest Release of Information form must be completed when information is disclosed to a person or authority other than an executor or administrator for the estate.

Third parties may include:

• next of kin
• funeral director
• person who notified Services Australia about the death
• state's public trustee
• probate office where the estate's probate has been lodged

Check the following for third party contact information:

• DEA screen
• Document Tools
• DL screen
• Marital Status (MS) screen
• Links Summary (LS) screen
• State probate/probate advertisement websites for listed executors progressing probate (see the Resources page)

Where a third party can provide details of the executor, staff must seek to verify the information if this has not been done previously. See ‘Confirmation required for the death of an adult’ in Confirmation of the death of an adult or child.

Can a third party provide a name and contact information for the executor?

• Yes, go to Step 9
• No, go to Step 8

Is the next of kin's name and contact information known to Services Australia?

• Yes, go to Step 10
• No, go to Step 11

Do not contact the executor (verbal or written) until 4 weeks have passed since the date of the customer's death.

Note: exercise sensitivity when discussing a deceased customer's debt with the executor or third party. If the deceased customer identified as Indigenous, see Cultural considerations when someone dies and Indigenous naming conventions.

Make a genuine attempt to contact the executor before sending a DRC Advice of account to executor (Q080) letter. Do not discuss the debt until the executor is authenticated.

Was the attempt to contact the executor successful?

• Yes, and the executor advised there are insufficient funds in the estate:
• the debt is to be permanently written off, see Step 6 in Table 2
• Yes, and the executor advised there are sufficient funds in the estate:
• send a Q080 letter
• for all new debts add the text 'We have determined that interest charge will not be payable in relation to this debt.'
• for existing debts, include any interest in the total amount. The system will exclude interest from the date of death, once the death action is complete. Add the text, ‘The outstanding balance includes an interest charge. No further interest will be charged on this debt.
• DOC contact attempts and debt recovery information using the Recovery: Q080 Sent Fast Note’
• see Step 5 in Table 2
• No:
• send a Q080
• for all new debts add the text 'We have determined that interest charge will not be payable in relation to this debt.'
• for existing debts, include any interest in the total amount. The system will exclude interest from the date of death, once the death action is complete. Add the text, ‘The outstanding balance includes an interest charge. No further interest will be charged on this debt.’
• DOC contact attempts and debt recovery information using the Recovery: Q080 Sent Fast Note
• temporarily write off the debt Awaiting Estate for 4 weeks from date the letter is issued. See Temporary write off of Centrelink debts
• DOC the temporary writes off using the W/O Awaiting Estate Fast Note
• finalise the debt recovery activity on the Activity List (AL) screen

Note: if applicable, write off any debts managed in Process Direct.

Do not contact the next of kin (written or verbal) until 4 weeks have passed since the date of the customer's death.

Exercise sensitivity when discussing a deceased customer's debt with the executor or third party. If the deceased customer identified as Indigenous, see Cultural considerations when someone dies and Indigenous naming conventions.

If the executor is unknown but the next of kin is known:

• prepare a DRC to relative of deceased estate, executor unknown (Q464) letter and address to the next of kin
• prepare a DRC Advice of Account to executor (Q080) letter. Seal it in a separate envelope and address ‘To the Executor,’ ensure it is enclosed in the Q464's envelope. Send the letter to the next of kin's address
• for all new debts, add the text, 'We have determined that interest charge will not be payable in relation to this debt
• for existing debts, include any interest in the total amount. The system will exclude interest from the date of death, once the death action is complete. Add the text, ‘The outstanding balance for this debt has an interest charge that had already been included. No further interest will be applied to this debt
• DOC the record using the Recovery: Q080 & Q464 Sent Fast Note
• temporarily write off the debt using code Awaiting Estate for 4 weeks from the date the letter is issued. See Temporary write off of Centrelink debts
• DOC the temporary writes off using the W/O Awaiting Estate Fast Note
• finalise the debt recovery activity on the Activity List (AL) screen

Note: if applicable, write off any debts managed in Process Direct.

Do not contact the executor or next of kin (verbal or written), until 4 weeks have passed since the date of the customer's death.

If the executor and next of kin are both unknown:

• prepare a DRC to relative of deceased estate, executor unknown (Q464) letter and address it to whom it may concern
• prepare a DRC Advice of Account to executor (Q080) letter. Seal it in a separate envelope and address ‘To the Executor, ensure it is enclosed in the Q464's envelope. Send the letter to the deceased customer's last known address recorded at the time of death
• for all new debts add the text 'We have determined that interest charge will not be payable in relation to this debt
• for existing debts, include any interest in the total amount. The system will exclude interest from the date of death, once the death action is complete. Add the text, ‘The outstanding balance for this debt has an interest charge that had already been included. No further interest will be applied to this debt
• DOC the record using the Recovery: Q080 & Q464 Sent Fast Note
• temporarily write off the debt using code Deceased Awaiting Estate for 4 weeks (28 days+1) from the date the letter is issued. See Temporary write off of Centrelink debts
• DOC the temporary writes off using the W/O Awaiting Estate Fast Note
• finalise the debt recovery activity on the Activity List (AL) screen

Note: if applicable, write off any debts managed in Process Direct.

The debt recovery letter that is sent to the executor or next of kin of the deceased estate is dependent on whether the debt relates to Family Tax Benefit (FTB) or another payment type.

See the Resources page for example letters for the following:

• Q421 for FTB debts
• Q080 for all other payment types

Staff in Compliance Assurance and Debt Operations who process Registrar-General's Office (RGO) Interventions should:

• include all outstanding debt details in the Q080 advice for executors, and
• use the approved text provided for these cases

If required, previous actions can be reviewed by checking:

• HS screen
• DL screen
• OPKD screen
• scanned documents

Locate archived letters and records through the Archiving and Culling Engine (ACE).

Has the executor previously advised, in response to the Q080 letter, there are insufficient funds in the estate to pay the outstanding debt balance?

• Yes, go to Step 8
• No, go to Step 2

Contact the executor if:

• 4 weeks have passed since the DRC Advice of account to executor (Q080) was issued to the executor and
• payment of the debt has not been received and
• there has been no response to the letter

Make a reasonable effort to contact the executor to discuss the estate's capacity to pay the outstanding debt balance.

Note: exercise sensitivity when discussing a deceased customer's debt with executor. If the deceased customer identified as Indigenous, see Cultural considerations when someone dies and Indigenous naming conventions.

Was the attempt to contact the executor successful?

• Yes, go to Step 4
• No, go to Step 3

Consideration must be given to determine if it is cost effective to pursue recovery. It is not cost effective to continue recovery efforts where:

• there is an outstanding debt, or a debt is raised after death, and
• the outstanding balance is less than $10,000 and
• reasonable effort has been made to recover the debt from the deceased customer's estate

Is the debt below $10,000?

• Yes, go to Step 8
• No, go to Step 7

Check the following screens to assist with the conversation about the estate's capacity to pay the debt.

• Real Estate/Business Summary (REBS) screen
• Savings Summary (SVS) screen
• Shares and Investments Summary (SIS) screen

Note: this list is not exhaustive, and staff should check additional screens at their discretion.

Are there or will there be sufficient funds in the estate to recover the debt?

• Yes, there are or will be sufficient funds to recover the debt, go to Step 5
• No, and the:
• debt is over $10,000 and the estate has been distributed, go to Step 6
• debt is less than $10,000 and the estate has been distributed, go to Step 8
• estate does not have sufficient funds to recover the debt, go to Step 8

If applicable, write off any debts managed in Process Direct. Use discretion to extend the temporary write off if the executor requests longer than 3 months.

Does the executor know when payment of the debt can be made?

• Yes, the executor has provided a payment date:
• code an irregular cash arrangement. See Arranging cash repayments to recover debts
• procedure ends here
• No, the executor cannot provide a payment date:
• temporarily write off the debt Deceased Awaiting Estate for 3 months. See Temporary write off of Centrelink debts
• request the executor make payment when the estate is distributed
• request the executor contact Services Australia in 3 months if payment has not been made
• DOC the temporary writes off using the W/O Awaiting Estate Fast Note
• finalise the activity on the Activity List (AL) screen

The executor is responsible for payment of all known debts before distributing the estate to beneficiaries. If sufficient funds were available to pay the estate's Centrelink debt, the executor is obliged to do so.

Costs incurred from managing the estate and funeral expenses are high priority. However, if the estate has sufficient funds to cover part of the debt, the executor may resolve the estate in a way that is acceptable to all creditors.

Was the executor aware of the Centrelink debt before the estate was distributed? Is there negligence?

• Yes, and the amount of the debt is:
• over $10,000, go to Step 7
• less than $10,000, go to Step 8
• No, go to Step 8

The Specialised Recovery Team (SRT) is responsible for initiating recovery through the sale and seizure of available assets. See Civil procedures to recover Centrelink debts.

Refer cases where:

• the outstanding debt is over $10,000, and
• contact has not been successful, further investigation is needed, and
• confirmed asset/s in the sole name of the deceased customer will form part of the estate, or
• contact with the executor is successful and negligence is established

Refer cases that meet the above criteria via email to Specialised Recovery Team - Organisational Debt Recovery. Include all information provided by the executor, and a summary of information found on record that outlines the suitability for referral to SRT.

Has the case been referred to SRT?

• Yes, procedure ends here
• No, go to Step 8

If applicable, write off any debts managed in Process Direct.

A debt may be permanently written off if the:

• total debt value is under $200, and it is deemed not cost effective to recover
• executor or third party advises there is no estate
• executor or third party advises the estate has been distributed and there are insufficient funds in the estate to pay the Centrelink debt
• estate has partially paid the debt and the executor, or third party advises there are insufficient funds in the estate to pay the remaining balance
• executor or available assets are unable to be located

To permanently write off a debt:

• see Permanent write off of Centrelink debts. Use code Deceased Insufficient Estate - DEC
• DOC the permanent write off using the W/O Insufficient Estate Fast Note
• finalise the debt recovery activity on the Activity List (AL) screen

Permanent write off does not extinguish the debt owing. If further estate funds become available, apply these to the debt.