Being an executor on benefits advice needed.

Gorey22

I am hoping that you can help me find some answers to assist my friend, no-one can give a clear answer how to correctly proceed with the DWP in this situation. Every helpline we try says they don't know and fob us off to someone else. It seems such a grey area. Citizens Advice couldn't really help either.

• Friend has recently lost a parent and is now in the position of being the executor of the estate
• She is in receipt of income support / Housing benefit etc.
• She is fully aware that she can only have limited savings and that once she has received her inheritance share this must be fully disclosed to the DWP and her benefits claim will be reduced.
• She needs to know what the procedure is with DWP on how operate within the rules and not have her benefits frozen while estate is sorted out as there will be this extra account with estate money in,in her name.
• Bank account of parent has been frozen , awaiting instructions from her. Money held £33,000. Will be shared by 3 beneficeries .
• Bank don't need her to do probate to release the funds.
• In her role of executor the bank want to transfer parents money to a new account her name, this would only be open for a short time while the affairs were sorted out and funds shared 3 ways.
• Doesn't want to be accused of benefit fraud by doing it wrong
• She has been paying bills from her own account until this is all sorted out.


Would the DWP give her time to act as an executor and handle the estate account without it affecting her current income for now as that money is still estate money ?Will it only become her inheritance when the remainder is divide by 3 and in her personal account? Will the DWP see this new account as hers, even if she has the will to explain her actions?

Thank you

pmlindyloo

Who does your friend bank with?

Gorey22

She's with Lloyds bank.

Ames

I handed it all over to a solicitor, mainly because of abuse from family but she handled all the money.

Your friend needs to set up an executor's account. I don't know if you can set one up in the name of 'estate of x' but if possible that would be the best bet.

Keeping meticulous records is vital, so it can be proven that it's not your friend's money.

Also remember that until the estate is wound up any money belongs to the estate, not to your friend. She doesn't have to report it to the DWP until the point it becomes hers.

I imagine it would be the same as direct payments - it's easy to prove that it's not the claimants' money.

pmlindyloo

Lloyds Bank have a bereavement service and your friend should be able to make an appointment with a trained bereavement specialist.

https://www.lloydsbank.com/help-guidance/customer-support/bereavement.asp

So that should be your friend's first point of call.

What your friend needs is an executor's account.

Unfortunately banks can be difficult about granting these and probate is usually needed (the costs of which can be met from the deceased's bank account)

But at the very least your friend needs to find out if an executor's account is possible.

If Lloyds are unhelpful or getting probate is a requirement and your friend doesn't want to do this then they will need to deal directly with the DWP.

Your friend needs to telephone and explain the situation. They need to ask what evidence they need to prove the new bank account holds the money from the estate of the deceased and how this will be distributed. Emphasise that it will only be in an account for a few days before the money is distributed to the beneficiaries.

When the money hits the new account will it be ready to be distributed or are there further bills to come from it?

Just seen the last line of your post. What bills ahs she been paying from her own account? She will, as already said, need to keep meticulous records as an executor for any expenses coming out of the estate before it is distributed to the beneficiaries.

Flugelhorn

I got an RBS account with Exec in the name before I even applied for probate, they did it on sight of the will and the death cert.

Ames

Is the money all there is to distribute, no house to be sold or anything like that? If there is a house then it's best to keep the money in an executor's account rather than distribute that and then find there are costs relating to a house that have to be met.

Gorey22

Thanks for the reply, The bank will only set up an executors account if it goes through probate. She seems reluctant to do this.
We are recording everything , just been so frustrating as no seems to know the best way forward.
The estate is made of savings, no property or shares.

Danday

Gorey22 wrote: »

I am hoping that you can help me find some answers to assist my friend, no-one can give a clear answer how to correctly proceed with the DWP in this situation. Every helpline we try says they don't know and fob us off to someone else. It seems such a grey area. Citizens Advice couldn't really help either.

• Friend has recently lost a parent and is now in the position of being the executor of the estate
• She is in receipt of income support / Housing benefit etc.
• She is fully aware that she can only have limited savings and that once she has received her inheritance share this must be fully disclosed to the DWP and her benefits claim will be reduced. Any re-assessment of her entitlement will only happen when the estate is wound up and is distributed to the beneficiaries.
• She needs to know what the procedure is with DWP on how operate within the rules and not have her benefits frozen while estate is sorted out as there will be this extra account with estate money in,in her name.She should open up a current account in the name of the deceased - executors of.
• Bank account of parent has been frozen , awaiting instructions from her. Money held £33,000. Will be shared by 3 beneficeries .Correct, this money should be transferred into the estate account once opened.
• Bank don't need her to do probate to release the funds.Correct
In her role of executor the bank want to transfer parents money to a new account her name, this would only be open for a short time while the affairs were sorted out and funds shared 3 ways.Correct
• Doesn't want to be accused of benefit fraud by doing it wrong Not wrong
• She has been paying bills from her own account until this is all sorted out.once the money has been transferred into the estate account she should withdraw the amount that she has spent of her own money


Would the DWP give her time to act as an executor and handle the estate account without it affecting her current income for now as that money is still estate money ?Will it only become her inheritance when the remainder is divide by 3 and in her personal account? Will the DWP see this new account as hers, even if she has the will to explain her actions?

Thank you

This is quite a simple process, but you must not put estate money in your personal account and should not pay estate debts out of your own account.

Danday

Gorey22 wrote: »

Thanks for the reply, The bank will only set up an executors account if it goes through probate. She seems reluctant to do this.
We are recording everything , just been so frustrating as no seems to know the best way forward.
The estate is made of savings, no property or shares.

If that is what they want to happen then just do it - it's a simple process.
https://formfinder.hmctsformfinder.justice.gov.uk/pa2-eng.pdf

Ames

Why doesn't she want to go through probate? If it's because she's trying to put off getting the money for benefit reasons then she could fall foul of deprivation of capital.

The actual process of getting probate is simple.

If her reasons for being on benefits mean she's going to find it hard to be executor (mental health problems, for instance) then she needs to find another way of dealing with it - appointing a solicitor or handing over to someone else.