Help with death benefits.

frosty

Hi,I have received a letter from AXA insurance.My father died 6 years ago and he had a policy that I knew nothing about,there was no paperwork,my mother knew nothing either.When he died my mothers pension was adjusted and she was entitled to pension credits,council tax benefit,and help with the rent.We dont know what the policy is worth yet,but I have been thinking that my mother might have to pay back her pension credits/rent/council tax for the last 6 years.My mother doesnt seem to think she will have to.I was hoping someone here may be able to give us some advice.I dont want her to go on a spending spree then be hit with a large bill.thanks.

McKneff

Tbh i have no idea but the best thing you can do is give the DWP a ring and get it from the horses mouth so to speak.

She may well have to depending on the amount payable if she has been claiming means tested benefits.

frosty

thanks,I will phone and ask.....better safe than sorry.

mabainborough

It depends if she is over 65.

If she is 65 or over and her income was classed as 'stable' she should have had an AIP set. This means that during this AIP period which is usually set for 5 years, changes will only be made to her benefit if they were beneficial to her.

E.G. Say your mum won 1.2 million on the lottery, she would ring the DWP and inform them, but because it would result in her losing benefit, they wouldn't make this change.


Say your mums savings went down from 12000.00 to 9000.00 over a period of 3 years. Because this drop in savings resulted in her benefits going up then the change would be made.

An AIP is like having that benefit amount 'protected'.

When your mum completed her Pension Credit claim, she would have been asked if she knew of any occupational pensions/anuities etc that she was due to inherit or receive in the next 12 months. This is the crucial question.

When you write to them (send it recorded delivery if i was you!) advise them that your father passed away six years ago and that no member of the family knew of this policy, your mum didn't know and therefore you were unable to declare it on her claim form and ask for the post to be sent to a specialist decision maker. She has not knowingly falsely claimed benfit as she did not know the policy existed. Therefore if or when the AIP was set, the facts presented were true, so no overpayment has occured and the occupational pension should not be taken into account until the AIP expires.

If this does result in an o/p or the annuity being taken into account immeadiately than fight the decision!!!