Probate granted, monies distributed, DWP now want to 'go over estate'

Miss_Moneysaver

Hi,


My mum passed away last October and I am one of her 3 children (I am the youngest and the only one not made an executor).


Anyway, she left quite a bit of money and we were concerned that the DWP would make a claim as she was claiming pension credit for many years. Although my mum had organised the will through a solicitor my elder sibling decided to do the organisation themselves. I was worried at the time they were rushing things. Anyway, probate was granted and nothing had been taken by the DWP. We were told that they wouldn't touch it now probate was granted. So, my elder sibling split what was there 3 ways and paid it, immediately, into each of our bank accounts.


A few weeks later and my sibling (executor who took over the whole thing) has received a letter saying that the DWP now wants to review mum's estate. Both older siblings have spent their share, I haven't touched mine.


What can they do?

brewerdave

In my understanding, making sure that all statutory bodies are happy before estate distribution, is one of the executor's duties. So,if as it sounds ,your mother had been claiming pension credit fraudulently then the DWP have every right to claw back overpaid monies from the estate. It'll fall on the executor to satisfy their demands -and rightly so, as it sounds like you were all fully aware that fraud had been committed.

Keep_pedalling

This would have been triggered by probate being granted which brings your mum's estate into the public domain. Once that happens the DWP can see that your mum may not have been entitled to pension credit, so can chase the estate and/or beneficiaries for repayment.

What was the value of her savings and how old was she?

Keep_pedalling

brewerdave wrote: »

In my understanding, making sure that all statutory bodies are happy before estate distribution, is one of the executor's duties. So,if as it sounds ,your mother had been claiming pension credit fraudulently then the DWP have every right to claw back overpaid monies from the estate. It'll fall on the executor to satisfy their demands -and rightly so, as it sounds like you were all fully aware that fraud had been committed.

That's a bit harsh, we don't know enough details to jump to that conclusion. It's quite possible that PC was claimed legitimately and savings built up after that. If the lady was in her 80s or 90s then the review period would have been indefinite, and you don't have to inform the DWP of changes in you capital unless your marital status changes or you move to a care home.

My mum recieves PC but hardly spends anything so her savings have gown over the years, her review period is indefinite so we have not had to inform anyone those changes.

Mojisola

Miss_Moneysaver wrote: »

Anyway, probate was granted and nothing had been taken by the DWP. We were told that they wouldn't touch it now probate was granted.

Who told you this?

All probate does is give someone the power to handle the estate. It doesn't take much research to realise the the executor is legally and financially responsible for any decisions he/she makes about the estate.

If the executor hasn't made sure that all debts have been paid, there may be other people turning up wanting money from the estate.

elsien

Keep_pedalling wrote: »

That's a bit harsh, we don't know enough details to jump to that conclusion. It's quite possible that PC was claimed legitimately and savings built up after that. If the lady was in her 80s or 90s then the review period would have been indefinite, and you don't have to inform the DWP of changes in you capital unless your marital status changes or you move to a care home.

My mum recieves PC but hardly spends anything so her savings have gown over the years, her review period is indefinite so we have not had to inform anyone those changes.

Is that correct? I though there was a duty to inform within the review period if you hit the capital limits.

Keep_pedalling

elsien wrote: »

Is that correct? I though there was a duty to inform within the review period if you hit the capital limits.

See page 27 of this document.

You could win the Euromillions lottery and still claim, which is obviously silly, but assessed income periods are being abolished shortly so things will be changing.

brewerdave

Mojisola wrote: »

Who told you this?

All probate does is give someone the power to handle the estate. It doesn't take much research to realise the the executor is legally and financially responsible for any decisions he/she makes about the estate.

If the executor hasn't made sure that all debts have been paid, there may be other people turning up wanting money from the estate.

This second part can be quite a nightmare - going thru my late mother's effects we couldn't find any old cheque book stubs -appears that she threw them away -also, going thru bank statements over the 12 months prior to her death we have identified ~ 15 cheques that have never been presented/cleared. Only two of these have been found so far - both made out close to her date of death, which I can now account for -but the remainder are unknown.Apparently my sister knows that my mother tore up cheques that she had made mistakes on - but how many ??
I have left 4 months after her death for these to emerge but am now preparing for application for probate.

Yorkshireman99

Keep_pedalling wrote: »

See page 27 of this document.

You could win the Euromillions lottery and still claim, which is obviously silly, but assessed income periods are being abolished shortly so things will be changing.

I recently had occasion to ask the DWP for advice on this with reference to an elderly neighbour who had received a large legacy. They stated that whilst they would not routinely reassess the is a legal obligation to notify and change of circumstances.

Yorkshireman99

Miss_Moneysaver wrote: »

Hi,


My mum passed away last October and I am one of her 3 children (I am the youngest and the only one not made an executor).


Anyway, she left quite a bit of money and we were concerned that the DWP would make a claim as she was claiming pension credit for many years. Although my mum had organised the will through a solicitor my elder sibling decided to do the organisation themselves. I was worried at the time they were rushing things. Anyway, probate was granted and nothing had been taken by the DWP. We were told that they wouldn't touch it now probate was granted. So, my elder sibling split what was there 3 ways and paid it, immediately, into each of our bank accounts.


A few weeks later and my sibling (executor who took over the whole thing) has received a letter saying that the DWP now wants to review mum's estate. Both older siblings have spent their share, I haven't touched mine.


What can they do?

If the executors did not follow the correct procedure they could be personally liable. The DWP have the right, in some circumstances to recover over payments from the estate. If the executors did not publish the statutory notice then they can be personally liable. In some circumstances they can recover fund from beneficiaries. The executors need to liaise with the DWP and sort the mess out. In the meantime don't spend your share.

getmore4less

brewerdave wrote: »

I have left 4 months after her death for these to emerge but am now preparing for application for probate.

A s27 notice may be worth the cost in this case especially if you are not a residual beneficiary.

lay executors do not have to wait for probate to issue these but I believe solicitors might(would have to go digging for a reference).