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Repayment of Loan After the Death of Participant

Last amended 
4 July 2022
Loan repayment following death 



When a Home Equity Access Scheme (HEAS) participant dies, the loan under the scheme is usually recovered from their estate.


If a pensioner with a Home Equity Aceess Scheme loan dies and...


there is no surviving partner,

DVA usually enforces the charge on the property used as security and recovers the loan immediately as a lump sum.

there is a surviving partner entitled to loan payments but who does not wish to continue receiving them,

that person may choose to repay the loan at any time by making repayments or by withholding an amount from any pension entitlement.

there is a surviving partner entitled to loan payments and wishes to continue receiving them,

Payments will continue and recovery of the loan is deferred until the death of the surviving partner.

there is a surviving partner who is not entitled to receive Home Equity Access Scheme payments (for example they are below the pension age)

the loan may be recovered after the bereavement period.    

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Note: In this case, discretion exists to phase, delay or accept partial recovery where the family home is involved.

Restrictions on recovery




The restrictions on the recovery of a loan are shown in the table below.

If a member of the couple dies and the partner...


receives bereavement payment

the loan may be recovered after the last day on which a bereavement payment is payable.    

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is over veteran pension age and has use of all or part of the assets subject to the charge

the loan may be recovered after the death of the partner.

Manner of recovery negotiable

Where the amount of the loan is recovered from a person's estate, it is expected that the full amount of the loan should normally be repaid by the executor of the estate as a lump sum. However, the manner of recovery can be negotiated between the Commission and the executor.



The Department of Veterans' Affairs.

Bereavement period, as defined in section 53H of VEA, in relation to a person's death, means the period of 98 days starting on the day on which the person died.