Legal deadlines for canceling hukou registration: in cities, before burial; in rural areas, within one month

No expense involved. Just bring the death certificate and household register to your local police station.

Article 8, Paragraph 1 of the Hukou Registration Regulations states: “When a citizen dies, in cities the household head, relatives, guardians, or neighbors must report the death to the hukou registration authority and cancel the hukou registration before burial; in rural areas, this must be done within one month. If a citizen dies while temporarily residing elsewhere, the local hukou registration authority must notify the permanent residence’s authority to cancel the registration.” In short, urban residents must act before burial, while rural residents have one month to do so. Any household head, relative, guardian, or neighbor may initiate the process at the police station, which serves as the hukou registration authority. If the deceased was living temporarily elsewhere, the local police station there must inform the permanent residence’s station to cancel the hukou registration.

全国人大常委会 (1958). 中华人民共和国户口登记条例（第八条）. http://www.gd.gov.cn/zwgk/wjk/zcfgk/content/mpost_2531969.html（广东省人民政府门户网站刊登）

Leaving the hukou registration active will prevent any inheritance transfers, benefit claims, or insurance cancellations, as all these procedures rely on a cleared hukou status. If pension payments continue despite the death, they constitute fraudulent collection and must eventually be repaid. While at the police station, also ask how to suspend social insurance and yibao payments, as well as how to apply for funeral subsidies. Details on these financial matters are covered in Item 9 (housing provident fund balances and related social insurance benefits).