Pension Credit

Adyc · 27 November 2014 at 12:32PM

My Father in Law passed away last week, on the morning of the funeral we got a letter from DWP saying he owes £1400 as he did not declare a pension as income toward his pension credit. He was a very private man, we knew nothing of the pension, my worry now is about what else will surface. I understand he should have declared the pension as income, but we have been left with a draw full of papers.
My wife is executor, there are assets to about £25000, we have told the banks and done the one stop, is there anything else that we should be doing?
Any help would be appreciated, my wife literally broke down when the bill came in, this has been difficult enough.

TBagpuss · 27 November 2014 at 12:43PM

Is there a will? Is your wife the executor?
If dealing with his estate she will have to use any money to clear his debts.

however, this is very early days and having notified people of the death she can take a little time before doing anything further.

Be aware that there are significnat issues with dealing with a bankrupt estate so if she thinks there may be other debts greater than the assets she may want to stay out of it.

it may be sensible to go through the drawer of appears to get a feel for what else may be lurking before making a decision

if it is just the DWP then yes, this will need to be paid back

Shelldean · 27 November 2014 at 12:46PM

Don't distribute until you are certain all debts are paid.

OH Nan died March. She was getting benefits she's wasn't entitled too.
Probate granted June, dwp had all their info by beginning of Aug. And we're still awaiting their decision. But their letter said not to distribute yet.

Adyc · 27 November 2014 at 12:53PM

Yes there is a will, the solicitors named are now not with the firm so a letter of renunciation has been applied for and my wife will be the executor.
This seemed a sensible course of action at the time as things seemed straightforward. We have not found any insurance so the next thing to deal with will be the funeral bill.
I think there will be enough to cover everything, I don't think he will have declared the building society account or dividend from shares as income, but will deal with that later.
Thanks for the advice.

pmlindyloo · 27 November 2014 at 1:13PM

It is not necessary to try to do everything at once. It is very early days and there is no need to rush to get everything done at once.

Have a read of this:

http://www.adviceguide.org.uk/wales/relationships_w/relationships_death_and_wills_e/dealing_with_the_financial_affairs_of_someone_who_has_died.htm

Go though the drawer of papers and put everything into order. Take your time. Even if your FIL does owe money his creditors can wait until you have sorted everything out.

Have the banks released the money without asking for probate?

As regards the Pension Credit overpayment then see if you can find your FIL's award letter for PC. He may have had an Income Assessed period when he did not have to notify them about any change of circumstances (ie when he started receiving the private pension) but it is also possible that he just did not inform them and should have.

In either case you need to ask the Pension Service for a breakdown of the overpayment. You can telephone them and discuss everything with them - ask if he had an Income Assessed Period - and ask for a written breakdown of the money owed. If, when you check, he did owe the money then it can be paid back from the estate. Take the name of the person you speak to and write down what they say.

When my mum died I spoke to a very helpful person at the Pension Service.

The most important thing is to take your time. Just go through the link and come back and ask if you have any specific questions.

Adyc · 27 November 2014 at 1:27PM

Thanks for the advice it is much appreciated,I think I need a break from this for a couple of days, my wifes reaction was violent to the point I had to convince her to go to the funeral. We need to finish clearing the house at the weekend etc.
My main concern was that we would be left with debts as well as the loss of my father in law.
I have been impressed by the attitude of the banks/building societies, very sympathetic and understanding.
No the banks are not asking for probate which is a start, but we cannot apply for anything until the letter of renunciation is issued.
I think we had best just hold off on everything until things are settled
and leave the accounts as they are.

Mojisola · 27 November 2014 at 3:43PM

Adyc wrote: »

My main concern was that we would be left with debts as well as the loss of my father in law.

Despite what some companies/agencies will tell you, no-one else is responsible for the debts of someone who has died. If there isn't enough money in the estate, debts can't be repaid.

Pension Credit

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