Linda McComiskie – whose son Mark Connolly died last May – faces an allegation she claimed Income Support, housing benefit and council tax benefit in the years before her son's death.
Cupar Sheriff Court heard McComiskie is accused of failing to tell benefits chiefs she was living with partner Leslie Sneddon.
Prosecutors say they were "maintaining a common household" – and that she swindled a total of £67,700.59 over the course of more than five-and-a-half years.
McComiskie, 47, of Methil, Fife, pled not guilty on indictment to failing to notify the Department of Work and Pensions of a change of circumstances that affected her entitlement to Income Support.
It is alleged she therefore obtained £51,022.51 to which she was not entitled.
She further denied a second charge that she obtained £16,678.08 in housing and council tax benefit the same way.
The case was continued to a further pre-trial hearing later this month.
McComiskie will stand trial early in January.