Insurance overpayment into deceased account

stevesmate

Hi everyone,

I have a query and wondered if anyone had any information or advice, please... My Father-In-Law died approximately 3yrs ago. My Sister-in-law was one of two executors and between them they informed all the relevant people, closed all linked accounts and settled all debts before the remaining estate was divided and apportioned as per the instructions left.

Roughly two weeks ago my Sister-In-Law received a letter from Legal & General stating that they were seeking the reimbursement of £770.00 which, they say, was overpaid after my Father-In-Laws death.

My Sister-In-Law says that she let everyone know at the appropriate time, and we've no reason to disbelieve her. All of the debts were paid before the solicitor released funds to the family.
We have no issue whatsoever in repaying this money if it's legitimately owed, but, obviously, we'd rather not!
I've had a good rummage online but my search terms keep throwing up no real answers so I thought I'd take a punt and ask on here.

Do L&G have a case? We can't prove that they were informed but they can't prove that they weren't. Are they chancing their arm? The letter sent is very polite and states that they would be grateful if the funds were returned... that doesn't strike me as someone 'demanding' repayment, more asking very nicely for it?

As said previously. We've no issue paying if we owe the money, and we might even negotiate a deal with them even if we're not legally obliged to do so, I just wanted to see if someone could clarify our position first. We'd speak to the solicitor who dealt with the estate but we'd no doubt be charged £90 just to walk into the office so that's a last resort.

Thanks in advance, any information gratefully received. Cheers!

dunstonh

What type of plan was it from L&G?

You say they are seeking reimbursement. That suggests it is not an insurance but a pension. If the insurance was being overpaid (you pay the insurer), then they would be reimbursing the estate. Not asking for them to be reimbursed.

It is not uncommon for the pension to be paid after the date of death for a period and having to pay some back. The date the insurer is informed of the death and any payments in the process could lead to several payments being made after death.

So, was this a pension? Were payment received from L&G after date of death.

There are also some options with pension income (such as with or without overlap or with and without proportion) which can influence the ongoing amount being received if there is a spouse pension being paid.

TrickyDicky101

No experience of this I'm afraid but I believe this cost (assuming the estate was large enough) is for the residuary legatee to bear solely. Is this you/your husband/wife or someone else?

stevesmate

Hi, thank you for your speedy reply.

Yes, this was a pension, apologies for not making that clearer.

L&G state that payments continued after his passing, but we're not sure how that would have happened given that they would have been informed along with everyone else.
Prior to the estate being divided, I would have assumed the solicitor dealing with it would have double checked that all accounts were closed, I would have also expected her to have picked up on income still coming in to an account. (To be honest, I sat on my hands as I wasn't involved in any of it) It seems odd that payments would have continued without anyone picking up on it, and it seems harsh to come knocking three years later. There was no spouse btw, he was a single man when he died so his estate was divided between his daughters (2) and brother, who was the other executor.

I fully expect that we'll be paying the money back, I'm just trying to find out where we stand legally as it'll make negotiating the amount a bit easier if we know we're doing them a favour.

Thanks again

stevesmate

Hi, yes that's what I'm expecting to be honest, but it never hurts to check... My Wife is one of the three beneficiaries of the will. I'm simply asking the questions because it sort of involves me now and I'm not one to roll over quietly. I don't mind stumping up if it's due, but i'd like to know where i stand first.

Thanks again