DWP Recovery from Estates

Hazzanet

MotownFox wrote: »

So first things first what were the assets that you declared for Probate that total the Gross assets that show on the Grant.

Almost entirely savings, and some personal effects. He was pretty frugal and was putting a fair bit away up until he was taken into residential care and the income was diverted to the Council's accounts.

John_Pierpoint wrote: »

So it was "a fishing trip?"

I sincerely hope mine is.

lavalamp

Hazzanet - a person is only allowed a certain amount of savings before they stop receiving benefits. I am unsure of the amount, but given that you don't need to apply for probate for anything less than £5k, maybe that's what the problem is? Too much in savings?

Hazzanet

awpvicki wrote: »

maybe that's what the problem is? Too much in savings?

I guess this is the problem. We'll see what they say; the old chap had 6 years worth of bank statements so I assume they will be helpful in some way if that's the route they intend on going down. :cool:

lavalamp

It's amazing what old people keep - my MIL had bank statements going back to the early 1980's and a school report from when she was 6 years old shortly after being evacuated during the war!

lavalamp

Now here's an interesting question.... If the savings he had was purely saved up from his benefits, how would he stand then? If he only had the money because he'd been frugal with his benefits. Anyone know how that would work?

Errata

Savings are savings, full stop, no matter what was done to achieve them.

Hazzanet

Errata wrote: »

Savings are savings, full stop, no matter what was done to achieve them.

Agreed, but the question opens up an interesting debate. If pension credit is given to help an elderly person achieve a minimum level of income, and by being frugal, that puts them over the savings threshold, pension credit stops and they have to use the savings.

By some backhanded logic, it almost seems that the minimum income is being eroded by being sesnsible with the money.

I'm also interested where I can get £1 a week (£52 a year!) interest on savings of £500. Certainly not NS&I! :rotfl:

HP_Source

I've been watching this thread for a little while as the topic interests me, having recently been through this experience following the death of my mother. Seeing where you have now got to has prompted me to register in the hope I may be able to help.

From your latest post it seems that pension credit is the benefit in question. When someone is granted pension credit they are also normally given an assessed income period. The effect of this is that any increase in their savings during this period does not effect their entitlement to pension credit nor the amount of the credit.

In my mum's case she had first been granted pension credit back in 2004 with a 5 year assessed income period. Sometime in 2008 the rules changed and it become possible to grant an indefinite assessed income period. The effect of this was that when the 5 year period was up it was automatically turned into an indefinite assessed income period without any further need to assess her savings.

The result was that it was not her savings at the date of death but the savings in 2004 that were relevant in determining whether there had been any overpayment.

In my mum's case after a bit of correspondence they agreed there had been no overpayment. Hopefully you may find the same.

lavalamp

Hazzanet wrote: »

By some backhanded logic, it almost seems that the minimum income is being eroded by being sesnsible with the money.

The moral of the story is, never be sensible with benefits!! :T

No wonder the benefit system is abused so much when they have crazy rules like this!

Hazzanet

HP_Source wrote: »

I've been watching this thread for a little while as the topic interests me, having recently been through this experience following the death of my mother. Seeing where you have now got to has prompted me to register in the hope I may be able to help.

From your latest post it seems that pension credit is the benefit in question. When someone is granted pension credit they are also normally given an assessed income period. The effect of this is that any increase in their savings during this period does not effect their entitlement to pension credit nor the amount of the credit.

In my mum's case she had first been granted pension credit back in 2004 with a 5 year assessed income period. Sometime in 2008 the rules changed and it become possible to grant an indefinite assessed income period. The effect of this was that when the 5 year period was up it was automatically turned into an indefinite assessed income period without any further need to assess her savings.

The result was that it was not her savings at the date of death but the savings in 2004 that were relevant in determining whether there had been any overpayment.

In my mum's case after a bit of correspondence they agreed there had been no overpayment. Hopefully you may find the same.

Hi HP - many thanks for this info.

From what I can gather from some of the paperwork, his income was solely the pension topped up with pension credit, and he was claiming housing and council tax benefit. I must admit that I don't know much about benefits but this appears to be a baptism of fire for me.

It looks like these were all paid from pre-2006 (while he was in better health and not in a care home) so the assessed income periods may apply in his case.

awpvicki wrote: »

The moral of the story is, never be sensible with benefits!! :T

No wonder the benefit system is abused so much when they have crazy rules like this!

It almost puts me off ever trying to claim benefits because of the hassle it leaves behind