One of my tenants died

Tenancy Deposits

I have 5 students sharing a house on a Joint Shorthold Tenancy agreement. One of the 5 tragically died in January this year. The tenancy expires on June 30th when the remaining students will move out. The tenant who died had paid his rent up to the end of March. This leaves April, May and June to pay. I have one month's rent as a deposit from him which is protected according to the law (with tdsl) and I have told the other tenants that, due to the tragic circumstances, I will not ask them to make good the shortfall in rent and I have no intention of asking the guarantor (parent) either. I am happy to be two months out of pocket in the circumstances. I just want to check - when it comes to giving back the deposit, I will withhold the deceased tenant's deposit - am I within my rights to do this and, what if the deceased's parent/guarantor asks me about the deposit? Also when I told the other tenants that I would not be asking them for the missing rent, I didn't say that it was 'without prejudicing my right to do so'. Will I still be OK?