Receiving an unexpected lump sum, and what to do to save my current claim?

[Deleted User]

Yes that make sense -- just because money is in my account, does not mean it is 'my money'.

Considering the DWP are already aware of this payment coming to me, and they have already contacted me as the named 'administrator' or her affairs, it's not like I'm trying to mislead them; I just might need to provide proof in the future, should they require it.

calcotti

Although, as you say, DWP know they have sent you money different parts of DWP are not good at communicating. You should inform ESA about the money and what you have done with it.

[Deleted User]

calcotti said:

Although, as you say, DWP know they have sent you money different parts of DWP are not good at communicating. You should inform ESA about the money and what you have done with it.

I agree -- I don't want anything coming back to bite me, and subsequently finding myself blamed for their lack of communication.

theoretica

I agree that the whole sum will never be 'your' money - but needs to be divided according to the rules of intestacy. Just to confirm her parents are no longer alive, and there were no other siblings who have passed away leaving nieces and nephews? Also if your deceased sister left any debts they will have a claim before you get a share.

calcotti

theoretica said:.Also if your deceased sister left any debts they will have a claim before you get a share.

Good point - hadn't thought of that.

theoretica

I think you said your other sister paid for the funeral etc - if she was out of pocket, that should be repaid.

[Deleted User]

theoretica said:

I agree that the whole sum will never be 'your' money - but needs to be divided according to the rules of intestacy. Just to confirm her parents are no longer alive, and there were no other siblings who have passed away leaving nieces and nephews? Also if your deceased sister left any debts they will have a claim before you get a share.

No, the sole beneficiaries will be me and my other sister -- there are no parents, grandparents or other siblings.

At the time of her death, the DWP paid me towards the funeral costs -- my other sister paid the rest. I don't know if they'll want that back on discovering that there was money in her estate after all.

She may have had other debts, but not that I've been made aware of.

calcotti

UncertainTea said:At the time of her death, the DWP paid me towards the funeral costs -- my other sister paid the rest. I don't know if they'll want that back on discovering that there was money in her estate after all.

It would be sensible to contact them and ask them. If they say they don't want it back see if they will confirm that in writing.
https://www.gov.uk/funeral-payments

If you receive money from the deceased’s estate
Your Funeral Expenses Payment will be deducted from any money you get from the deceased’s estate.
The estate includes any money or property they had but not a house or personal things left to a widow, widower or surviving civil partner.

UncertainTea said: She may have had other debts, but not that I've been made aware of.

The obvious ones would be if she had any credit cards.

MEM62

[Deleted User] said:

Last year one of my sisters sadly died.

Sorry for your loss.  

UncertainTea said:

What happens if the money is spent immediately, but not on frivolities? For example, payment of debts, much need home repairs and a private medical procedure for myself, that the NHS won't cover?

It would be wise to clear your debts and cover essential repairs if the cash is available. 

[Deleted User]

Thank you everyone for your replies -- very helpful.

My mistake is thinking of myself in terms of her brother -- yes I am, but for this I need to think of myself in terms of the administrator of her estate -- and, for now, to treat this as her estate, rather than my capital. (thankfully it will be in a separate account).

I guess that means, come distribution time, I'll need to get signatures and proof of everything paid out, even for my surviving sister, to cover my backside for the future.

When my grandad died, many years ago, the executor of his will (a solicitor) made an interim payment to us, but kept a reserve for a year, in case of any unexpected costs. I wonder how that would work out if 'me as an admin' makes interim payments to 'us as persons' and distributed the remainder a year after her death.

Lot's of hypotheticals, so I have a phone appointment booked with the CAB next week, who hopefully will be able to explain my options more clearly, and give me support if I need it.

My biggest fear was that I would lose my claim completely, but if it has to be reduced for a while, then so be it -- at least I'll keep my security.