Overpaid Private Pension

G6JNS

Newly_retired wrote: »

Even without any fraudulent intent, it is still an overpayment and has to be repaid.
It is not the deceased's money, as there was no entitlement to it.
Overpayments can easily happen as their systems of payment are all in place and even with prompt notification, it is often already too late to prevent payment.

On what basis are you saying the family are liable? They may well n ot have known about the overpayment. As far as I can see the only possible liability lie with the bank who paid the money out without legal authority.

G6JNS

Ziggazee wrote: »

You've had the money. You weren't entitled to spend it. You must pay it back. Fairly simple really.

Who are you saying has had the money? AIUI the bank paid the money to the funeral dirtectors not the family.

Newly_retired

If the money had not been in the account, presumably the family would have paid for the funeral in full themselves? So they have benefitted from the overpayment.

[Deleted User]

I was overpaid after my husband died, I had a letter to repay the overpayment and they gave me a couple of choices in how to do that. All done and dusted now, I repaid, no problem, it was the moral and right thing to do. I notified quickly but the overpayment came a few days after death

Your mother will likely be paid a proportion of the private pension and they can take it out of that over a few months. Depends if the pension was sole or not. If sole then it unfortunately died with the husband

[Deleted User]

G6JNS wrote: »

I did not say, or, infer that, the debt could be ignored. To suggest otherwise is both stupid, and offensive. What I did say, and will repeat, that the spouse has not liability unless she acted in a fraudulent manner. Of course the bank should have been informed promptly as should the pension company but unless this was deliberately delayed in order to get extra money nobody has done anything wrong.

It could have been fraudulent and the spouse does have liability. The pension as it stood, died at the time of death. One accidental overpayment would have been understandable but not more than one. I had one overpayment due to the timing factor, if I had let the overpayments continue then I would definitely have been at fault. They were very flexible about me paying back

As a recent widow, I do understand the minefield and mental trauma of dealing with the finances but it has to be done and as honestly as possible. Finances will settle down op, it really is turmoil at first and very difficult for those without decent savings

Ziggazee

"If the money had not been in the account, presumably the family would have paid for the funeral in full themselves? So they have benefitted from the overpayment."

^ Only this ^

SeniorSam

G6JNS is right.

It is the ESTATE that is liable for any debt, not an individual, or member of the family. The estate is administered by the Executors, who have responsibility to pay the debt provided there are funds in the estate and before any distribution to beneficiaries. If there are no assets, or funds with which to pay the debt then the executors should advise the pension company accordingly. The debt cannot be passed on to a member of the family.

Sam

Newly_retired

This money was not in the deceased's account at date of death, so falls outside the estate, and is repayable.
Outside the estate, the executor is not liable. The family have spent it, on the funeral, but had no entitlement, therefore it has to be repaid.

g6jns_2

Newly_retired wrote: »

This money was not in the deceased's account at date of death, so falls outside the estate, and is repayable.
Outside the estate, the executor is not liable. The family have spent it, on the funeral, but had no entitlement, therefore it has to be repaid.

As soon as the bank is notified of the death they will change the name "the executors of xxx deceased" so the funds will be part of the estate unless proved otherwise. The family have, probably without any knowledge of the overpayment, asked the bank to release the funds to the funeral director. If the family had no prior knowledge of the overpayment then they have no legal liability. Nor do the executors. It really is for the bank to sort out.

dzug1

g6jns wrote: »

If the family had no prior knowledge of the overpayment then they have no legal liability. Nor do the executors. It really is for the bank to sort out.

But isn't it the executor's job to establish such facts?