Deceased Estate and Pension

Mojisola

The DWP letter saying there has been an overpayment is often triggered because the value of the home is included in the estate figures but is ignored when an assessment is made for means tested benefits so it can look as if the deceased had more capital than was allowed.

It's taxpayers' money they are handing out so they have to check these things.

valio247

Thanks to all for the sound advice; I have gained some valuable insights. As this thread is getting a bit long (although not complaining) let me try and consolidate the facts:

1. My sister died intestate and due to her personal & financial circumstances the Probate Registry has informed me Probate will be unlikely to be required unless any financial organisation requests it – which has not happened thus far.

2. The banks have all released her assets, in 2 cases because they were small amounts (£1.08 & £5.96) and in the third instance where there was a few hundred pounds this was released to go towards funeral costs. All the accounts are frozen.

3. Ignoring the pension issue for the moment – my sister has less assets than money she owed, which means presumably the estate is insolvent. All assets I have put towards funeral costs but it does not cover even the basics and I have paid the outstanding amount.

4. This is the part I may have misunderstood myself and assumed too much - she has a deferred pension with Clerical Medical whom I have been in contact with and they have written with a total value figure. This is the part I probably got incorrect; it also states:

‘The rules define persons to whom the lump sum death benefit may be paid (potential beneficiaries). The rules provide us with discretion to decide who will benefit from within these groups – certain classes of relative, financial dependants, persons names in the will, legal personal representatives and person(s) nominated by the plan holder in writing”

The final paragraph states: “According to our understanding the claim value will not normally form part of the deceased estate”

Myself, other sister and brother are her closest living relatives/next of kin but the company has not stated we are beneficiaries.

5. The DWP along with several other departments are aware of the death via the ‘Tell us Once’ service when the death was registered.

Still a bit long winded and complicated but always appreciative of any input.

SevenOfNine

The trustees of our son's death in service benefit (the pension company) clearly indicated that it would be outside the scope of his estate & they had discretion as to who the beneficiaries would be, seems similar to that of your sister.

Intestate, so in our case as his parents that would have been us (no wife, kids etc). The pension company asked if we wanted them to take anything into consideration before they came to a final decision. They did not initially disclose that our son had completed a nomination form 3 years ago.

I was aware of it, said so & asked that they comply with our son's nomination wishes which were that his brother inherit.

They asked us to write 1 letter signed by all 3 of us confirming this was what should happen, the payment was made without them even waiting for LoA.

I'd advise you to write to the pension company & ask them, as trustees of your sister's fund, to distribute it evenly in accordance with intestate succession. Then provide accurate list with addresses. Assume just you 3, no other deceased siblings with surviving children who'd inherit their share?

Tuesday_Tenor

valio247 wrote: »

Still a bit long winded and complicated

Seems to me that you are working through it all very systematically, and clarifying the complexities as you go along.

Well done, as it must be a difficult time, losing one of your own generation.

Someone I've been working with on a committee has just died at 49. Nearly a decade younger than me; very sad and sobering.

Keep asking here if you come across new questions; we'll do what we can. Even if we don't have all the answers we can often shed more light on the issues.

valio247

Thanks to:
SevenOfNine - the pension company did send a form for me to complete which requested names of relations which followed the intestate succession order. I assume they will write with their decision in due course.
Tuesday Tenor - for the kind words and encouragement. It is a difficult time as my sister was 9 years younger than me. However these things happen and life must go on.

1098

Hello apologies this is the first time I have used this site and not sure how to start. My parents lived in Spain for many years. My dad died 4 years ago and so his pension was paid to my mum via a Spanish bank account. My mum didn't want anything to do with me and I had not seen her for 2 years. Last October I received a call to say she was ill and in hospital. My brothers, whom she had relationships with, refused to fly to Spain to help. I flew out with my uncle only to find out she had died the day before. I then found out she was in arrears with her rent and she had no estate at all. When I arrived back to the uk I informed my dads pension she had died. They were unable to stop the months pension going into the Spanish bank and said they would reclaim it later. The Spanish bank froze her account saying they had no proof who has legal rights. I have since been bombarded from the pensions people saying I owe them the overpayment, which is still sitting in the Spanish bank! They have now put it into the hands of a debt collector. Any advice would be greatly appreciated.

Yorkshireman99

1098 wrote: »

Hello apologies this is the first time I have used this site and not sure how to start. My parents lived in Spain for many years. My dad died 4 years ago and so his pension was paid to my mum via a Spanish bank account. My mum didn't want anything to do with me and I had not seen her for 2 years. Last October I received a call to say she was ill and in hospital. My brothers, whom she had relationships with, refused to fly to Spain to help. I flew out with my uncle only to find out she had died the day before. I then found out she was in arrears with her rent and she had no estate at all. When I arrived back to the uk I informed my dads pension she had died. They were unable to stop the months pension going into the Spanish bank and said they would reclaim it later. The Spanish bank froze her account saying they had no proof who has legal rights. I have since been bombarded from the pensions people saying I owe them the overpayment, which is still sitting in the Spanish bank! They have now put it into the hands of a debt collector. Any advice would be greatly appreciated.

You owe them nothing! The debt is the responsibility of whoever is the executor. If there are no other funds then you should just do nothing.

Savvy_Sue

Yorkshireman99 wrote: »

You owe them nothing! The debt is the responsibility of whoever is the executor. If there are no other funds then you should just do nothing.

You could write to the pensions company to state that you are not the executor - say who is, if you know - and that your previous letter was just a courtesy. Personally I wouldn't ignore it if debt collectors have been instructed.