Benefits entitlement while waiting for probate.

Yamenja

I am both executor and realistically sole beneficiary of my mother's estate (there are some small gifts of money to 4 grandchildren, but they do not amount to much). I currently receive  housing benefit and council tax reduction due to being a pensioner with less than £6,000 savings. I am waiting for probate to be granted but am expecting some substantial transfers of money to my own accounts, due to being executor and the amounts involved being below the probate thresholds of the banks concerned. I am assuming that I am neither entitled to use or distribute  the money, other than perhaps to pay bills owed by the estate, until probate is granted, and so also assume that I will not lose my entitlement to benefits until then either, but am wondering if the council would be entitled to reclaim benefits from the date of death, rather than the date of probate, given that the inheritance will mean I am no longer eligible for such benefits. It would be helpful to know at what point I lose eligibility. Sadly as the council has misinformed me or mismanaged by entitlements - always in their their favour - previously, I don't particularly trust their advice and would be glad to hear from anyone who has been in this position and know what their experience was. Thanks in advance...!.

Keep_pedalling

It is my understanding that as far as benefits are concerned, it is when you receive the money that counts. In your case it is complicated by the fact you are the executor as well, but any money released by the banks is still owned by the estate until you receive probate.

Have you kept this in a separate executors account? 

Yamenja

I've not created a dedicated  executors account but am using savings accounts that were either empty, or almost empty....so have put them aside for the monies from the estate. It would not be possible to open an executor account prior to probate, by which time I will be entitled  to most of it anyway.

Keep_pedalling

I would simply leave the money untouched until you get probate then inform the LA of your change of circumstances  from that date. Inform them by writing to them and include a copy of probate as proof of the date your were entitled to receive the money as a beneficiary.

Yamenja

That seems good, clear, logical advice, thank you KP! 

poppystar

Do you actually need probate? Is there a property or accounts where they are asking for probate?

RedMonty

Keep_pedalling said:

I would simply leave the money untouched until you get probate then inform the LA of your change of circumstances  from that date. Inform them by writing to them and include a copy of probate as proof of the date your were entitled to receive the money as a beneficiary.

Agree. 

Also to add that if it turns out you need to transfer estate money to your own account in the course of your Executor work (e.g. to pay to relatives or bills or other beneficiaries), then legally it isn't your money.  So you don't need to inform the benefits people.

Keep good records of the estate accounts though, e.g. an Excel spreadsheet, and a folder of receipts so if challenged by the benefits people, you can point to each transaction and say where it came from and where it's going. 

Yamenja

poppystar said:

Do you actually need probate? Is there a property or accounts where they are asking for probate?

Yes the estate is well above the threshold.

Yamenja

Also to add that if it turns out you need to transfer estate money to your own account in the course of your Executor work (e.g. to pay to relatives or bills or other beneficiaries), then legally it isn't your money.  So you don't need to inform the benefits people.

Keep good records of the estate accounts though, e.g. an Excel spreadsheet, and a folder of receipts so if challenged by the benefits people, you can point to each transaction and say where it came from and where it's going. 

Thank you, Red Monty. I am keeping a balance sheet and all documentation. 

Keep_pedalling

Yamenja said:

poppystar said:

Do you actually need probate? Is there a property or accounts where they are asking for probate?

Yes the estate is above the threshold.

What threshold are you referring to? 

Yamenja

Keep_pedalling said:

Yamenja said:

poppystar said:

Do you actually need probate? Is there a property or accounts where they are asking for probate?

Yes the estate is above the threshold.

What threshold are you referring to? 

As Poppystar asked if I need probate, I was referring to the inheritance tax thresholds, as the estate exceeds the lower limit. While nobody has asked for it, it's my understanding that it is my  legal responsibility to have applied it.