I have had to deal with this recently as well.  We were advised to pay the salary as if for a normal leaver as the payment belongs to the estate of the deceased until probate is granted.  In our case the employee had not made a will incidentally.  So the money went into the bank account as usual to be dealt with all personal effects.  I did have to write to the next of kin to get a death certificate to claim under our group life insurance policy.  I wrote the letter very simply asking for the death certificate and the reasons why and I had also telephoned, I found that the next of kin were very understanding of what seemed to be the very unemotional but necessary steps we had to take.  As this was a relatively young person, we also put together a book of memories and raised money for her favourite charity.  This certainly helped us to feel we were doing whatever we could and I know helped her parents just a little - sadly that was all we could do.