Ignore requests from the state trying to claw back pension overpayments after someone has died

MSE_Emily

Friends or relatives can ignore requests by the Government to return overpaid state pension payments in the event of the recipient's death, as there is no legal obligation to pay the money back...

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Ignore requests from the state trying to claw back pension overpayments after someone has died - they have no legal right to do so

comeandgo

There was an overpayment made to my late mother, she lived her life to be scrupulously honest and would have been horrified if I had not repaid the money she was not entitled to.  I treated her affairs in death the same as if she was dealing with them.

kipsterno1

@comeandgo I could not have put that better. 

Marcon

comeandgo said:

There was an overpayment made to my late mother, she lived her life to be scrupulously honest and would have been horrified if I had not repaid the money she was not entitled to.  I treated her affairs in death the same as if she was dealing with them.

Quite so. It is also unclear from the first post that this only applies where the overpayment arises after death. If someone is overpaid while they are alive and it only comes to light after they die, different matter.

JGB1955

I'm still fretting (but only a little) that HMRC have sent me (as executor) a refund of about £200 more than expected for my fathers tax bill for 2020/21.  Since they haven't sent me a breakdown of their 'workings', I'm just going to sit on it for a decade or so!

My father was always scrupulous about paying his bills - he died the day after his state pension was paid - 'nice and tidy'!

richmac

I’m a little conflicted here. An overpayment, for whatever reason, is money someone isn’t entitled to. Granted there may be no legal obligation to return money in this case but surely there’s a moral one?

Remember the Govt doesn’t have any money - it’s ours that they’re spending (usually badly). Not sure this is helpful advice from MSE. 

relishy57

I got a letter re an overpayment very quickly after my husband passed away. He had been inconvenient enough to die mid way through the payment schedule. I repaid it on auto pilot immediately but later on in the process I was surprised how quickly this demand came when other matters dragged on at their usual slow pace.  

Pollycat

I was very dissatisfied by how long it took for Mum's death certificate to come through.
Despite a brochure from the Bereavement Services at the hospital where she died giving a timescale, it took much longer. I rang them at least 3 times.
And then it took days for the Registrar to actually produce the d/c and provide me with the unique number for the 'tell us once' service.

With hindsight I wished I'd rung DWP straightaway (I believe the Registrar sends details to DWP electronically now).

So part of the overpayment was down to official delays.
I felt I was totally in the right to write to DWP with a part refund - and a letter explaining why I'd not refunded the full overpayment.
And my Mum would have approved of my action.
 

Thrugelmir

richmac said:

Remember the Govt doesn’t have any money - it’s ours that they’re spending (usually badly). Not sure this is helpful advice from MSE. 

Perhaps financial journalists believe in magic money trees? We live in a world where seemingly someone else should pay. As the cost of Government debt rises then taxpayers minds might be more focussed. 

Malthusian

comeandgo said:

There was an overpayment made to my late mother, she lived her life to be scrupulously honest and would have been horrified if I had not repaid the money she was not entitled to.  I treated her affairs in death the same as if she was dealing with them.

It is enshrined in official guidance that attorneys should handle their donor's affairs as the donor would if they were able to do it themselves, within the constraint of acting in their interests. Arguably the same applies to executors, who do the same job for people who are dead rather than lacking capacity.

Although the equivalent constraint for executors is the duty to distribute the estate to beneficiaries so the question is whether an executor is violating their duties if they pay the overpayment to the State (unless the Will instructed them to).

I don't think there is a right or wrong answer here but MSE has certainly done its best to provoke an argument with that imperative "Ignore requests from the state" when they could have stuck a "You can" on the beginning.

Hands up everyone who turned over a "Bank error in your favour" card in Monopoly and gave the £10 back to the banker?

"But that's different." How so? "Because a Monopoly bank error isn't a real-life bank error, you're allowed to keep the money and it's just a piece of printed paper anyway." Cool, exactly the same as this situation then.

Vespaboy

So something for nothing then and money that is not yours should just be kept ?

If an overpayment is made then it ought to be returned or at least offered to be returned - it may be for small amounts the government may waive wanting it back but that is for the government to decide not you. As an Executor you need to do the right thing, I know my late father would be horrified if I had just kept any overpayment however small