DWP Claim and Estate distribution - advice please.

Mojisola

barryjarcher wrote: »

Other 2 executors (sisters) are really pushing to get an interim payment, now I'm happy for this to occur but I want to know what I'm personally liable for if we do make the interim payment. ?

What I mean is they are skint (which is why I'm happy for payment to be made) but I am in no doubt that the money they get will be spent whereas I'm not needing the money and happy to wait until its finalised. So if payments are made and a (highly unlikely) worse case scenario occurred where the estate is wiped out by the DWP claim and it needs paid back would I be personally liable for amount that was paid out even though it was the other executors that had the payout?

You are an executor and responsible for what happens to the money so, yes.

barryjarcher

Thank you Mojisola, from your comments and my research online has persuaded me that I don't want to accept the risk and I'll not agree to interim payment.

Mojisola

barryjarcher wrote: »

Will is divided to 3 beneficiaries and the remainder a equal split between myself and 2 sisters (all execs)

barryjarcher wrote: »

from your comments and my research online has persuaded me that I don't want to accept the risk and I'll not agree to interim payment.

I think that's wise.

Don't forget that not only does the DWP have a call on the estate but the three beneficiaries will have to be paid their legacies before the remainder of the estate is split between the executors.

G6JNS

barryjarcher wrote: »

Thank you Mojisola, from your comments and my research online has persuaded me that I don't want to accept the risk and I'll not agree to interim payment.

Very wise.Make sure that the DWP claim, if any, is very carefully scrutinized as they are not infallible nor are they the last word in what the law is. If need be take specialist legal advice from an expert in the field.

Shelldean

OP,

If it's any help we got a letter from DWP just today informing us of how much they want the estate to pay back. First contact asking for information was July last yr. So not a speedy process.

However we believe their figure to be incorrect (way too low) so as we believe the executor will be liable should he pay out and then DWP rears it head again, we've requested a call from the case handler to.confirm figures. Because as in your case, there are three.siblings, two are skint (executor being one of them) and the money will be gone.

pmlindyloo

i find it amazing (or do I?) that you cannot find the legislation about the recovery of debts from a deceased estate on line. At least, I haven't been able to find it and I'm usually pretty good at this kind of thing. There is some old legislation but believe this has been amended.

A few points from my point of view.

Can this debt be considered as unenforceable? The DWP certainly has very powerful recovery methods without having to go to court for those living and according to the Gov site can be recovered form the deceased estate.
Moreover it could be argued that this debt (if it exists) would only arisen after an investigation after notification of the death and therefore it could be argued that the limitations act could not be used as this debt did not exist until after death.

If the solicitors advertise for creditors to come forward within the set time limit and the DWP do not present the debt after this time, the DWP are also likely to argue that their letter notifying the executors of a possible debt would already have made them a 'potential' creditor.

The investigation is likely to take them a considerable time as the possible debt seems to involve Income Support, Pension Credit and perhaps, other means tested benefits such as HB and CT support.

Another potential problem would be whether the deceased had an Assessed Income period when changes in capital did not have to be notified. Plus, of course, diminishing capital rules that would need to be taken into account.

So that I don't stray too far from the original OP's question it would seen sensible to allow some of the money to be released. If the DWP cannot provide a maximum figure to 'keep back' then the money released should be fairly small amounts.

Of course the OP can, ultimately, appeal the DWP's decision as regards the amount of money but this would be time consuming and extremely complicated.

Whilst understanding that people look forward to an inheritance it should be remembered that the deceased may have been claiming tax payer's money fraudulently. Of course, if the deceased had mental health problems during the time they were claiming then it is possible that the whole amount could be written off.

I agree that finding a solicitor experienced in these matters is the best way forward as the solicitor dealing with the probate is very unlikely to know anything about this.

Maybe the Law Society can help?

Weary_soul

Sadly imo most solicitors (probate specialists or not) don't seem to have a clue when it comes to dealing with benefit overpayments though, and dealing with the DWP.

Snuggles

OP, FWIW I think it's absolutely the right decision not to allow any interim payments in your situation.

I was recently executor for my father's estate, and I knew there would be money to repay to DWP in respect of pension credit and PIP payments. However in my case I was able to calculate the maximum possible amount that could be repayable, and based on this I was able to make interim payments, leaving more than enough in the estate to cover any DWP claim - which in the event turned out to be much less than the maximum possible I had cautiously calculated.

In your situation, with a DWP investigation spanning ten years, and no idea of the value of any future claim, there is no way I would have taken the risk of making interim payments to residuary beneficiaries, especially as the other bequests should be paid first before the remainder is distributed. Just not worth the risk IMHO.

I guess if your sisters are really struggling you could agree to a very small interim payment, of say £1k each, if you are willing to take the risk.

pmlindyloo

Snuggles wrote: »

OP, FWIW I think it's absolutely the right decision not to allow any interim payments in your situation.

I was recently executor for my father's estate, and I knew there would be money to repay to DWP in respect of pension credit and PIP payments. However in my case I was able to calculate the maximum possible amount that could be repayable, and based on this I was able to make interim payments, leaving more than enough in the estate to cover any DWP claim - which in the event turned out to be much less than the maximum possible I had cautiously calculated.

In your situation, with a DWP investigation spanning ten years, and no idea of the value of any future claim, there is no way I would have taken the risk of making interim payments to residuary beneficiaries, especially as the other bequests should be paid first before the remainder is distributed. Just not worth the risk IMHO.

I guess if your sisters are really struggling you could agree to a very small interim payment, of say £1k each, if you are willing to take the risk.

Being a little pedantic, but just on case of anyone else reading this.

PIP is a non means tested benefits so unless there were a couple of overpayments after death then savings/income of the deceased would not have had any effect on the PIP payment.

Shelldean

We've just paid our dwp overpayment back. Eleven months after they first contacted us. Was a lot lot less than we'd believed, but then we'd added up All her weekly money over the ten years she'd been claiming. But we now realise that we only had to pay back the pensions credit to which she had no entitlement to.

So the light at the end of our probate tunnel is now a bit brighter!!!

Hope yours doesn't take as long x