DWP claim against estate

chili199

Hi - my grandmother died last year and left a house worth £440k and a few hundred pounds in the bank. The DWP have sent a claim against the estate for over payment of pension credits and income support. As she had no liquid capital (very little cash in the bank)...I assume they are claiming solely on the basis that her house is worth £440k. Are they able to do that? They are claiming an overpayment since 1992 totalling just under £115k?

nannytone_2

ask how the overpayment occired and a breakdown of the figures.

If she was being paid benefit that she shouldnt have been receiving, then they have first claim on her estate.

sleepless_saver

Are you the executor, as it will be the executor who is responsible for dealing with this.

It's not enough for DWP just to say that £115k is owed. The executor must ask them to produce a detailed breakdown. The executor should also make every attempt to trace old bank statements, check for savings accounts or other assets to try to establish whether the DWP claim is right.

And they might well need to get specialist welfare rights advice, particularly as the sum involved is so large.

Was your grandmother living alone for the whole 20 year period?

missapril75

sleepless_saver wrote: »

It's not enough for DWP just to say that £115k is owed.

The DWP will have satisfied themselves the capital existed with no reason for it to have been disregarded and that benefit was overpaid as a result; they won't want to take all that time calculating an overpayment going back 20 years if they're not sure.

A start date will have been identified, account will have been taken of all the uprating and any other changes in each year. And then someone else will check it. Probably several people will be involved for such an amount.

A letter will have been issued stating the reason, the period and the amount.

The executor must ask them to produce a detailed breakdown.

I'm always a little annoyed when the automatic response to a disappointing decision is that someone must appeal or must demand this and that. Is the executor qualified to go over it with a fine toothcomb and understand it all? Or is the idea just to make a nuisance of oneself and hope they give up?

Challenge it by all means if one has reason to think it wrong in some way.

Sorry, but maybe you can see how annoying that is...and I don't even work there anymore.

Was your grandmother living alone for the whole 20 year period?

Perhaps with a husband making the weekly overpayment larger than current rates.

Over 20 years that £115k is around £110 a week. Doesn't seem particularly out of line with the rates normally payable - dependent upon other pensions of course.

One point worth looking at could be diminishing capital. Had the benefit not been payable then, presumably, the house would have been sold to provide resources and as the years went by, the capital would have reduced.

Whether it makes a difference will depend on other income but, in theory, the capital could reduce at a rate that later in the period entitlement is reduced rather than cancelled; thus reducing the amount of overpayment.

Cpt.Scarlet

Because the DWP never get it wrong, their data is always correct, they never ignore a Change of Circumstance letter!!!

Are you seriously suggesting that someone should accept a demand for payment from the DWP without requesting further information, let alone one for £115K.

missapril75

Cpt.Scarlet wrote: »

Because the DWP never get it wrong, their data is always correct, they never ignore a Change of Circumstance letter!!!

Are you seriously suggesting that someone should accept a demand for payment from the DWP without requesting further information, let alone one for £115K.

Look at the reason for the overpayment. This is not a change of circumstances it's the existence of capital of nearly half a million ££ that ruled out entitled from the very beginning.

According to the information given it's for a 20 year period.

Perhaps you ought to read my post again and look at the likely levels of Income Support/Pension Credits in payment.

You might also see my comment about challenge it if there's a reason to think it's wrong.

Other than that chip on your shoulder do you have a reason to think it's wrong?

Russe11

the above poster, do you not know the difference between a home and liquid assetts.... as for saying its 1/2million, thats just silly as its over a period of 20years, so when the claim was started the assett would be worth less than the amount they are trying to recover.

antrobus

chili199 wrote: »

.... The DWP have sent a claim against the estate for over payment of pension credits and income support. ... They are claiming an overpayment since 1992 totalling just under £115k?

For that sum of money you should get a solicitor. And ask him to check whether the Limitations Act applies.

sammyjammy

antrobus wrote: »

For that sum of money you should get a solicitor. And ask him to check whether the Limitations Act applies.

There are no time limitations on recovery of treasury debts.

Pollycat

missapril75 wrote: »

Look at the reason for the overpayment. This is not a change of circumstances it's the existence of capital of nearly half a million ££ that ruled out entitled from the very beginning.

I can't see anywhere in the OP's post where it says what the reason given by DWP is for the overpayment.
Have I missed something?

Are you saying that owning a house worth £440K means you are not entitled to benefits such as Pension Credit or Income Support?
The Pension Credit claim form certainly doesn't ask if you own a house and how much it is worth, it's about income and savings.

If I were the OP, I'd definitely be asking for a full and detailed explanation of what the overpayment was for - unless of course she already has that information and hasn't shared it with us.

missapril75 wrote: »

Other than that chip on your shoulder do you have a reason to think it's wrong?

This is not necessary.

Mojisola

Pollycat wrote: »

Are you saying that owning a house worth £440K means you are not entitled to benefits such as Pension Credit or Income Support?

The Pension Credit claim form certainly doesn't ask if you own a house and how much it is worth, it's about income and savings.

If I were the OP, I'd definitely be asking for a full and detailed explanation of what the overpayment was for - unless of course she already has that information and hasn't shared it with us.

If the house was the claimant's home, then its value is disregarded.

If she was living somewhere else, such as a care home or with relatives, and still owned the house it would count as capital.

It would be very naive to just pay out that sort of money without asking for a precise breakdown of how the figure was arrived at. The DWP is made up of people - and people make mistakes.