Claim Under Probate - Beneficiary Refuses to Pay

bythesea555

Hi All,
I am the sole Executor to my mothers small estate. After a year on the market I sold her tiny retirement flat for a small sum and began, on solicitors instructions, to distribute to the six beneficiaries. I had distributed to one beneficiary, my brother, all of his inheritance, a few thousand, when a letter arrived from the DWP stating they were making a claim on my mothers estate and to NOT distribute the proceeds. I stopped distributing the rest immediately.
The DWP claim that my mother was overpaid Pension Credits (extra payments) and that it is this they will be claiming back. I am waiting to find out the sum involved & corroborating documentation.
I conacted my brother to ask him not to spend his inheritance because I may need a portion of it back to pay his share of the DWP claim. He refuses to pay a penny stating that the rest of us can pay his share!
I am so angry. I have spent a year sorting out my mothers mess and paying off debts and selling her flat and all the paperwork involved. He has not lifted a finger! I am disabled and trying to hold down a job and the stress after a year has not abated one bit.
Now I find that if there is not enough left I am personally liable to pay back the DWP!
Does anyone know of any legal route I could take to make my brother pay his 1/6th share of the DWP claim (presuming we have enough) or has he got away scott free just because I did not get the DWP letter in time?

Mojisola

bythesea555 wrote: »

Hi All,
I am the sole Executor to my mothers small estate. After a year on the market I sold her tiny retirement flat for a small sum and began, on solicitors instructions, to distribute to the six beneficiaries. I had distributed to one beneficiary, my brother, all of his inheritance, a few thousand, when a letter arrived from the DWP stating they were making a claim on my mothers estate and to NOT distribute the proceeds. I stopped distributing the rest immediately.

The DWP claim that my mother was overpaid Pension Credits (extra payments) and that it is this they will be claiming back. I am waiting to find out the sum involved & corroborating documentation.

I conacted my brother to ask him not to spend his inheritance because I may need a portion of it back to pay his share of the DWP claim. He refuses to pay a penny stating that the rest of us can pay his share!

I am so angry. I have spent a year sorting out my mothers mess and paying off debts and selling her flat and all the paperwork involved. He has not lifted a finger! I am disabled and trying to hold down a job and the stress after a year has not abated one bit.

Now I find that if there is not enough left I am personally liable to pay back the DWP!

Does anyone know of any legal route I could take to make my brother pay his 1/6th share of the DWP claim (presuming we have enough) or has he got away scott free just because I did not get the DWP letter in time?

The DWP send out this standard letter to a lot of people. I got one regarding my Dad's estate because he had been receiving PC based on his capital but, when the estate went to probate, the value of his house added to his other capital made it look as if he had under-reported his savings. It was quickly sorted out and there was nothing extra to pay.

There had been some over-payment of benefit relating to the short period just after his death but that had been repaid much earlier.

I don't think there is any way of making your brother pay money back if it is needed.

rpc

I think the first claim would be against the executor, but ultimately the overpaid beneficiary can be held liable. The executor may in turn have cause to claim any losses from solicitors who advised them.

http://en.wikipedia.org/wiki/Re_Diplock deals with beneficiaries that were overpaid due to a mistake by the executors.

McKneff

I Would wait and see how much the overpayment will be. It may be only the fact that it is a weeks benefit (ie, paid in advance, before hand.
Let us know how you get on please.

bythesea555

Thanks to all for their replies.
It seems that mum had two ISA's. I don't know when she took them out or their value. I don't know if it was before or after she claimed PC. I can find no paperwork on either! Her paperwork consisted of over 20 stuffed carrier bags!
Two weeks before she died she cashed these ISA's. I understand from searching on-line that you cannot have more than £6000 savings when applying for PC. When I closed her bank account after her death (to pay for funeral/bills etc.) there was double that in her Account. I have no statements between 2011 and her death in 2013 and the closure statements don't cover any history.
So I supose it could be a valid claim if she had these ISA's when applying for a means tested benefit. Oh dear!
But you are all right about one thing. I need to wait and see what the claim is and then decide on a course of action. I definately want documented proof! Will keep you all informed.

Mojisola

bythesea555 wrote: »

I understand from searching on-line that you cannot have more than £6000 savings when applying for PC. When I closed her bank account after her death (to pay for funeral/bills etc.) there was double that in her Account.

It's £10k for PC.
https://www.gov.uk/pension-credit/eligibility

nom_de_plume

bythesea555 wrote: »

I understand from searching on-line that you cannot have more than £6000 savings when applying for PC. When I closed her bank account after her death (to pay for funeral/bills etc.) there was double that in her Account.

Mojisola wrote: »

It's £10k for PC.
https://www.gov.uk/pension-credit/eligibility

I suppose the next question would be will they want ALL the PC payments back that were made whilst the savings exceeded the maximum amount or would they settle for the sum that would take the savings below the threshold (in this case circa £2,000)?

bythesea555

I read it was £10,000 for couples and £6000 for single. My dad died 10 years ago.
It does seem that the Executor has precious little rights in this whole process.
No rights to speak of to reclaim recipients distributed inheritance if given in error due to poor or lacking advice.
Liable for absolutely EVERYTHING the Estate won't cover.
I find myself wondering if the DWP have a payment scheme or if they will make me sell assets to make up any Estate shortfall.
My husband and I are doing our will when this is all over and after this experience I cannot bring myself to make one of my two children our Executor. Seems like a cruel act!

RAS

The normal thing to do is to distribute a portion of the estate - we did 90% - and keep back a portion to cover any unexpected bills. With a small estate, I would keep back a larger portion.

have you advertised for creditors?

Mojisola

bythesea555 wrote: »

I read it was £10,000 for couples and £6000 for single. My dad died 10 years ago.

If she claimed PC ten years ago then it would the rules in place at the time that would apply. How long has she had the higher savings for?

Have you found any paperwork saying whether she had an AIP? If she was given an assessed income period when she got PC, then it wouldn't have affected her benefits if her savings rose during that time.

Added: found this article from 2003 and the savings level was £6000 originally - https://www.theguardian.com/money/2003/jul/08/pensions

Mojisola

bythesea555 wrote: »

Liable for absolutely EVERYTHING the Estate won't cover.

If the executors pay out before all the estate's debts are covered, then, yes, they are liable.

The executors aren't otherwise liable for the deceased's debts.