Husband Died - Private pension Co demand Repayment of £250 How do I stand legally?

mickW_2
mickW_2 Posts: 135
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My aunt's husband died aged 84yrs a few months ago and I sorted out all affairs. His private pension of just over £270 a month was paid before he died. The company was informed within 7 days that he had passed away with a copy of the death certificate. They have since been sending letters requesting £250 overpayment of pension from his estate. She has not got much money and spent her savings on the funeral and the house needs expensive repairs.
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  • xylophone
    xylophone Posts: 44,139
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    I assume that the pension was paid in advance so that the trustees have the right to demand the overpayment from his estate.
    Who was his executor?
    http://www.dwp.gov.uk/docs/dwp1027.pdf

    Is your aunt claiming all benefits to which she is entitled? (I am assuming that she herself is of pension age.)

    http://www.adviceguide.org.uk/england/benefits_e/benefits_older_people_ew/benefits_for_people_over_sixty.htm
  • mickW_2
    mickW_2 Posts: 135
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    edited 31 December 2012 at 2:53PM
    Yes my aunt is 75. So you say they will take her to court for this money? Only solution if that is correct is to write to them and offer to pay £10 a month from her pension. Do you think they would settle for that?
  • McKneff
    McKneff Posts: 38,816
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    Come on to be fair, they are not hounding her, they are simply asking for money back that she has been overpaid. If all the demands that you say have been sent have been ignored, then of course they are going to send another one. The first one asking for repayment should have been dealt with straight away.

    I cant think for a moment why you would say to her 'Do not pay this back'

    Suggest she writes to them with a payment plan if she cant afford to pay it back outright.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • mickW_2
    mickW_2 Posts: 135
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    edited 31 December 2012 at 2:54PM
    I will write to them and ask them to consider writing it off otherwise it will have to be a payment plan.
  • dunstonh
    dunstonh Posts: 116,038
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    told her not to pay this but now she has been sent another demand by recorded delivery.

    the executor of the estate has to make sure that liabilities are settled in good time. On what basis have you told her to ignore a request for an overpayment to be repaid?
    How does she stand legally by not paying this pension company the cash demanded.

    They can take the executor to court for failing to pay.
    She has not got much money and spent her savings on the funeral and the house needs expensive repairs.

    Doesnt mean she gets to keep money that doesnt belong to her.
    Why do these private pension companies hound a widow for an alleged overpayment of £250 that was not her fault?

    Sending out a letter which was ignored and sending out a chaser is not hounding. As for why, its because she has money that she is not entitled to. No need for you to be so dramatic.
    So you say they will take her to court for this money?

    That is what normally happens. Pretty much destroys her ability to get credit in future.
    Only solution if that is correct is to write to them and offer to pay £10 a month from her pension. Do you think they would settle for that?

    They may do but £10 is not a realistic amount. £20pm is as it gets it cleared within 12 months.

    When the pension was set up, the choice was made to pay it in advance or in arrears. Most people go in advance. The choice is then to have it with or without proportion. With means it is paid for the days in the month of death. Without means there is no benefit for the month of death. The latter is frequently chosen as it results in a higher monthly amount. These are all choices made at the time of taking the pension. So, there is nothing to debate or argue here. These are the consequences of actions and decisions made. It is a bit of cheek to try and get more out of a company and then blame them.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • mickW_2
    mickW_2 Posts: 135
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    Thankyou for all your kind words and advice.
  • The money is owed by the estate, not her unless the estate has been passed to her. The highest priority debt on an estate is the funeral, so if the cost of the funeral exceeded the value of the estate then they can't reclaim the money, but the executor would need to prove this.
  • mickW_2
    mickW_2 Posts: 135
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    Thanks Stephen.
  • atush
    atush Posts: 18,719
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    But the money spent on house repairs should not have been spent before paying debts into the estate.
  • rpc
    rpc Posts: 2,353 Forumite
    My aunt's husband died aged 84yrs a few months ago and I sorted out all affairs

    If you sorted out the affairs, were you executor or administrator? If so, then it is you who are potentially liable. This overpayment should be paid from the estate before you distributed anything other than reasonable funeral payments. If there was nothing left after that, then the debt cannot be paid.

    If your aunt is just a beneficiary, it is nothing to do with her. If there was no estate to speak of, there is no money to pay the debt.
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