DWP asking for money from estate

Ialwaysgetdone

A young family member has died after a very long illness. A letter has arrived from DWP saying there has been an overpayment and the person dealing with the estate needs to repay the money from it. It's over £500 and includes a £50 civil penalty whatever that is I don't know. Knowing she was going to die and that her insurance wouldn't pay out as she would have had to die from an unrelated illness, it was suggested to her to set up a funding page which raised about £500 short of what the funeral will cost (the undertaker doesn't have the bill ready yet). DWP are asking for bank details or a cheque or if you can't pay, then details of assets (none) and what was in the bank at date of death. The funding page money was in the bank at date of death so are they allowed to take it from that despite it being for funeral costs? It was stated on the page when set up that it was for that but will that make any difference? Edit> also, a will had been made and any money left in the bank was to be split between 2 people one of whom is a child who can't get the money until 18, there was only a few hundred in it anyway. Can they take that money?

[Deleted User]

Ialwaysgetdone wrote: »

A young family member has died after a very long illness. A letter has arrived from DWP saying there has been an overpayment and the person dealing with the estate needs to repay the money from it. It's over £500 and includes a £50 civil penalty whatever that is I don't know. Knowing she was going to die and that her insurance wouldn't pay out as she would have had to die from an unrelated illness, it was suggested to her to set up a funding page which raised about £500 short of what the funeral will cost (the undertaker doesn't have the bill ready yet). DWP are asking for bank details or a cheque or if you can't pay, then details of assets (none) and what was in the bank at date of death. The funding page money was in the bank at date of death so are they allowed to take it from that despite it being for funeral costs? It was stated on the page when set up that it was for that but will that make any difference? Edit> also, a will had been made and any money left in the bank was to be split between 2 people one of whom is a child who can't get the money until 18, there was only a few hundred in it anyway. Can they take that money?

Yes they can.

Ialwaysgetdone

I thought they probably could. There's no details of why this was overpaid other than it's Employment and Support Allowance related which is a joke in itself as they took that off her after declaring her fit to work despite her having gone through chemo then a bone marrow transplant and a stem cell replacement and was too ill even to walk and none of it worked. She was going to appeal that decision but was so ill she didn't have the ability to even try to find out how to go about it.

unforeseen

Surely funeral costs trump even DWP payments.

Mojisola

Funeral costs, then debts like DWP overpayments, then beneficiaries.

If you're not sure how the overpayment arose, get the DWP to explain in detail - they have been known to make mistakes.

Ialwaysgetdone

Are they not allowed to take any of the money that is for funeral costs then? If not then that would be a great help at least. There is so much to see to that's it's just so overwhelming and the DWP are saying the form they have sent to be filled in so that they can look at the bank account etc is required to be back in about 8 days or something now. Doesn't say what happens if not back by that date.

Keep_pedalling

This is the official guide for recoveries by the DWP, section 7.37 covered an insolvent estate.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/770083/benefit-overpayment-recovery-guide.pdf#page50

Over payments after death are not part of the estate and should be payed back, but that is not the case here so the DWP are simply an unsecured creditor so funeral costs come first.

If you have not already intermeddled by getting the bank to release the cash, then the best course of action is to write to the DWP, stating that the the estate is insolvent, that there are insufficient funds to cover a funeral and the that neither you or anyone else is administering the estate.

If it is too late for that, then the executor needs to write, again explaining that the estate is insolvent but will need to provide more detail on actual value of the estate.

If you can get away with the former then the bank will usually be willing to pay what is in the account directly to a funeral director on receipt of an invoice.

Ialwaysgetdone

Keep_pedalling wrote: »

This is the official guide for recoveries by the DWP, section 7.37 covered an insolvent estate.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/770083/benefit-overpayment-recovery-guide.pdf#page50

Over payments after death are not part of the estate and should be payed back, but that is not the case here so the DWP are simply an unsecured creditor so funeral costs come first.

If you have not already intermeddled by getting the bank to release the cash, then the best course of action is to write to the DWP, stating that the the estate is insolvent, that there are insufficient funds to cover a funeral and the that neither you or anyone else is administering the estate.

If it is too late for that, then the executor needs to write, again explaining that the estate is insolvent but will need to provide more detail on actual value of the estate.

If you can get away with the former then the bank will usually be willing to pay what is in the account directly to a funeral director on receipt of an invoice.

Thanks for that, I will have a read of it later today.

Ialwaysgetdone

Another thought I've had is that as it is a joint bank account does that make a difference? Would they only be allowed to take into account half of what was in it at date of death?

SevenOfNine

My condolences.

The £50 is a 'fine' levied on top of the overpayment. Loosely speaking DWP clearly think your young relative made an incorrect statement which led to a benefit (or higher rate of benefit) being paid, & did nothing to correct the error. That is NOT to say they did that deliberately so I'd probably at least try to have that waived. Though it is a drop in the ocean.

Be mindful of what might/might not 'qualify' as funeral expenses as far as DWP are concerned.

getmore4less

what were the terms of the funding page?

That may actually count as trust money outside the estate.