Welfare and Institutions Code § 11450.05

(a) For purposes of determining the maximum aid payment specified in subdivision (a) of Section 11450, the number of needy persons in the same family shall not be decreased because of the death of a child in the assistance unit for the month in which the death occurred or the following month.

(b) Aid paid under subdivision (a) shall not be deemed an overpayment unless the county determines, pursuant to Sections 11004 and 11004.1, that the assistance unit would have been subject to overpayment recovery, and the county would have sought recovery, even if the child had not died.