Do I need any confirmation from DWP before distributing estate

primroserose

Hello, 
I’m the executer of my uncles estate who passed away at the start of Feb. I used the tell us once service, and a few days later received a letter from DWP confirming they didn’t owe him any pension or pension credit at the time of death and if he owed any this would be firstly recovered from the account it was paid into unless is was a joint account (which it wasn’t) Haven’t heard anything else from them since. I applied for probate and received this mid Feb, the estate is under inheritance tax and involves a property and just under 10k of cash in bank. Once the house completes I will be in a position to distribute the funds to the beneficiaries. I’ve placed a notice in Gazette with 2 months notice to any creditors, however I’ve read quite a few posts about DWP being exempt from this notice and I’m worried that if I distribute the funds they will later send me a letter about investigating the pension credits received. I can’t imagine anything was incorrectly claimed and I don’t think he or his wife (who dies year before) has ever had over 10k in savings when they claimed but I can’t be 100% sure of this. How long to I wait for a potential letter? I can’t get hold of them to ask via phone at the moment. Has anyone ever written to them to ask them to confirm nothing owed? Do I just assume as it’s been 3 months since probate that they won’t ask me for any info and nothing is owed? 

I’m not a beneficiary myself so I really want to make sure I’m not going to end up with a massive bill to pay down the line! With HMRC it was so simple to just phone and they confirmed both uncle and his wife owed no Tax at time of death but it’s impossible to contact DWP. 

Thanks in advance! 

xylophone

I am assuming that the pension /pension credit was paid into your uncle's bank account.

Is there reason to suppose that he was overpaid in his lifetime?

It seems that no payments were made after your uncle died.

See http://paullewismoney.blogspot.com/2019/03/dwp-cannot-enforce-demands-to-repay.html

"There are some benefit and pension payments that the DWP does have the power to recover.

It has powers to recover money that has been overpaid in the individual's lifetime which was not due to official error. Those letters should not be ignored but the money may still not have to be paid."

NinjaTune

"I’m not a beneficiary myself so I really want to make sure I’m not going to end up with a massive bill to pay down the line!"

As long as you have done everything by the book (which it appears you have) then you would not be personally liable for debts/creditors.  You haven't heard from DWP since February which has given them sufficient time to work out if there has been an overpayment.  The Estate is liable for any debts so once it's been distributed that would fall to the beneficiaries and it would be them who need to pay any debts.  Having said that, I think they can refuse to pay.

Dox

NinjaTune said:

"I’m not a beneficiary myself so I really want to make sure I’m not going to end up with a massive bill to pay down the line!"

As long as you have done everything by the book (which it appears you have) then you would not be personally liable for debts/creditors.  You haven't heard from DWP since February which has given them sufficient time to work out if there has been an overpayment.  The Estate is liable for any debts so once it's been distributed that would fall to the beneficiaries and it would be them who need to pay any debts.  Having said that, I think they can refuse to pay.

February isn't a long time, given that lockdown started the following month. The DWP isn't noted for speediness at the best of times!

NinjaTune

Dox said:

NinjaTune said:

"I’m not a beneficiary myself so I really want to make sure I’m not going to end up with a massive bill to pay down the line!"

As long as you have done everything by the book (which it appears you have) then you would not be personally liable for debts/creditors.  You haven't heard from DWP since February which has given them sufficient time to work out if there has been an overpayment.  The Estate is liable for any debts so once it's been distributed that would fall to the beneficiaries and it would be them who need to pay any debts.  Having said that, I think they can refuse to pay.

February isn't a long time, given that lockdown started the following month. The DWP isn't noted for speediness at the best of times!

So how long is 'long enough' to allow DWP to get their backsides into gear?  Seems they were pretty quick to get a letter out telling OP they didn't owe the Estate any money.

The OP has sorted the Estate, obtained Probate, placed a notice in the Gazette and put the property is up for sale/sold it and waiting for completion.  If the might of one man/woman can do that in around 4 months during lockdown then the DWP doesn't have any excuses in my book! 

The issue was whether the OP would be personally responsible for any debts and from what I've read I don't think they can?

Robin9

Don't rush - make the most of the "Executor's Year". It's early days for the house sale and then there may be delays with any refunds from the Gas and Electric.

Mojisola

Once you have the money from the house sale you can do an interim distribution to the beneficiaries. 
Just keep back a token amount for six months or so to cover any possible claims. 

badger09

primroserose said:

Hello, 
I’m the executer of my uncles estate who passed away at the start of Feb. I used the tell us once service, and a few days later received a letter from DWP confirming they didn’t owe him any pension or pension credit at the time of death and if he owed any this would be firstly recovered from the account it was paid into unless is was a joint account (which it wasn’t) Haven’t heard anything else from them since. I applied for probate and received this mid Feb, the estate is under inheritance tax and involves a property and just under 10k of cash in bank. Once the house completes I will be in a position to distribute the funds to the beneficiaries. I’ve placed a notice in Gazette with 2 months notice to any creditors, however I’ve read quite a few posts about DWP being exempt from this notice and I’m worried that if I distribute the funds they will later send me a letter about investigating the pension credits received. I can’t imagine anything was incorrectly claimed and I don’t think he or his wife (who dies year before) has ever had over 10k in savings when they claimed but I can’t be 100% sure of this. How long to I wait for a potential letter? I can’t get hold of them to ask via phone at the moment. Has anyone ever written to them to ask them to confirm nothing owed? Do I just assume as it’s been 3 months since probate that they won’t ask me for any info and nothing is owed? 

I’m not a beneficiary myself so I really want to make sure I’m not going to end up with a massive bill to pay down the line! With HMRC it was so simple to just phone and they confirmed both uncle and his wife owed no Tax at time of death but it’s impossible to contact DWP. 

Thanks in advance! 

Really? 
That's incredibly quick. IMHO its far too early to assume nothing is owed to DWP.

primroserose

Thanks for the replies. 

I don’t have any reason to think it was overpaid, apart from the house there was less than 10k in the bank- this was higher than 18 months previous as I think the pension credit and pension had built up since the death of his wife as he then needed 24 hr care in his home so wasn’t spending anything.  I’ve also found a letter from 2017 stating they had an  indefinite assessed income period which I believe means they wouldn’t have had to report any changes in circumstances anyway. Although must have been reassessed after wife died as the amount went up. Would that be the reason they haven’t sent me the Don’t distribute the estate yet letter as any savings would have been protected anyway?

It’s been quick as it’s a really simple estate, 1 property of 200k(under offer), one bank account, phone, electric and water bill- that’s all the accounts they had! 

I’m hoping the sale goes through in the next 2 months, I can then pay the final utility bills and distribute the funds. I’ve already got some of the beneficiaries on my back about how much longer it’s going to be! I hadn’t thought of keeping some back for a while just in case, not sure how that would do down with the beneficiaries but then It’s not them how would be liable to pay a dwp bill! 

I thought it would be just as simple as dwp confirming nothing is owed. 

I did find some online guide for reclaiming pension credit from estates and it did say that if the executer has placed the notice in the gazette, the notice period has passed and dwp have not been in touch to advise of investigation and funds have been distributed they cannot then claim. 

But there’s a lot of advice online that says they can even with the notice being placed! 

p00hsticks

primroserose said:

It’s been quick as it’s a really simple estate, 1 property of 200k(under offer), one bank account, phone, electric and water bill- that’s all the accounts they had!

From what I've read in the past, it often seems to be that it's when DWP get sight of what may appear to be large probate value (because it includes the value of the residential property) that triggers the letter warning not to be too hasty in distributing the estate.

I'm with those who advise hanging on to at least a relatively small amount for a while longer.....

Mojisola

primroserose said:

I hadn’t thought of keeping some back for a while just in case, not sure how that would do down with the beneficiaries but then It’s not them how would be liable to pay a dwp bill! 

I thought it would be just as simple as dwp confirming nothing is owed.

Tough!  You're the executor and have to manage the estate correctly.

From what you've said, it's very unlikely that there is anything owed to the DWP but you have to protect your position.

Very few estates get sorted out as quickly as you've done this one.  If they have to wait six months for the DWP to send you written confirmation that nothing is owed, that's what needs to happen.