Bank account of deceased daughter being closed

TBagpuss

SevenOfNine said:

My condolences.  We're all assuming the grandchildren mentioned are your late daughter's children, is that correct?

Good point. If this is the case, then you should have no issue with your benefits as the money is not yours, it belongs to your daughter's children and you are simply acting as trustee.

However, if your daughter had no children, and you are planning to pass the funds to her nieces / nephews then you need to be careful as it would still be seen as yours for benefits purposes so you could end up being ineligible for benefits but unable ti use the money because you've given it away. 

If they are your daughter's children then do they have a surviving parent? If so, normally you could give that parent the funds to hold on behalf of the children. How old are the children and how much money is there?