TMZ reported the unidentified woman made the statement Monday at the 9th annual Andy Kaufman Awards show, which was presided over by Andy's brother, Michael.
She also said her father had planned to attend the event and explain the hoax himself but backed out at the last moment.
The woman said he faked his death when he was 35 to get out of the public eye, then got married and became a stay-at-home-dad.
She also said he is excited about the awards show named for him and watches footage from the ceremonies on YouTube.
Michael Kaufman said during Monday's awards ceremony he found a letter from Andy explaining his plan to fake his death.
TMZ said Internet records do not list a death date for Andy Kaufman, but instead suggest he was living in Cook County, Ill., then Westchester County, N.Y., as late as 2001.
The comedian and former "Taxi" co-star was well-known for his elaborate pranks, leading many of his fans to suspect his death was a hoax.
Notable deaths of 2014 [PHOTOS]