Possible Pension Credit Overpayment

Skippy13

My Mum died in September last year and in December I received a letter from the DWP advising there may be an overpayment of pension credits. I supplied the details of her assets as requested and earlier this week phoned them to chase up the response.

I was told they do have an interest in the estate as only two accounts were declared when she made the claim but there are in fact four. There aren't four bank accounts, only the two declared. A letter arrived today and I had a couple of questions so I phoned the DWP again and they told me today that only one account had been declared!

It turns out that they are taking into account life insurance policies that paid out after Mum died. Surely they can't include them as an asset as they weren't worth anything to Mum when she was alive. Can anyone confirm if they can include life insurance policies or if they have made an error? Thanks!

[Deleted User]

I can only assume that the life insurance payouts become part of the estate.

Skippy13

They were part of the estate but I can't understand how they could claim they were an asset that should have been declared as they were of no benefit to Mum. I can't see how something she couldn't access should affect pension credits but what do I know?!?

Ames

Did she have any access to the money before she died? Could she have cashed them in for a lump sum?

xylophone

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

is a comprehensive fact sheet on PC - does it throw any light?

Skippy13

I need to dig out my copies of the policies as they are in my ‘closed’ folder but, as far as I remember, there was no surrender value. The policies were so old I couldn’t actually get values as they were on an old archived system!

Thank you for the Age UK factsheet, that’s really useful. I’ve look through it briefly and it appears that most life insurance policies aren’t included so I need to check these.

Thank you for your help, I’ve never had to deal with anything like this before and I’m learning as I go along at a time when I really don’t want to.

xylophone

and I’m learning as I go along at a time when I really don’t want to.

Sadly this is very often the case where the executor is also the bereaved.

Skippy13

I’m only the executor as two are dead and the third didn’t want anything to do with it and renounced so I’m acting as I’m sole beneficiary. I used a solicitor for Probate but I’ve done the rest with my husbands help.

I’m not sure what to make about this to be honest. We had a joint account so I’ve got access to the statements online and it appears that the amount Mum was getting changed each year and was reduced from 2014-2016 and increased slightly last year so it looks as though it was being reviewed. However she seems to have been getting more than the calculators say she should, but I obviously don’t have the figures used and, annoyingly, we haven’t found anything about pension credits in her paperwork. I don’t even know how long she was claiming them for. I know it’s over 5 years as she received an inheritance (not a massive one) and notified the DWP who weren’t interested.

I’ve just got to wait and see and hope it’s all straightforward...

xylophone

Here is the fact sheet for 2011.

https://www.ageuk.org.uk/brandpartnerglobal/afanneddvpp/documents/fs48_pension_credit_fcs.pdf

TELLIT01

If things start to get complicated you may wish to get a solicitor involved again. Although there will obviously be a cost involved, they will take all the strain off your shoulders. It might be money well spent.

Skippy13

I was thinking of that. The solicitor who handled the Probate was very good so I’d use her again.

I spoke to the DWP again and it appears that only one account was declared by my Mum, presumably the current account. I don’t know if she had the ISA when she was last assessed as I don’t know when that was.

I also realised that when I wrote to the DWP with the list of assets I said ‘insurance policies’ and not ‘life insurance policies’ so I explained about this and confirmed there was no annual income from either one. I’m kicking myself for that error!

Thanks to everyone who has replied, it’s helped me a lot