How does AIP work after death

bob_a_builder

FIL - died recently, since got probate etc
FIL & MIL have a DWP letter from 2020 indicating they have Pension Credit and an Assessed Income Period  ( can't find any  later letters on the subject) and they last 5 years don't they ?
His bank account had risen to 30k at time of death - just from pension payments, no other income, were just not spending it quick enough !

Given there an AIP in place, whats likely to happen with DWP recovery dept ?

SnowMan

Detailed information on assessed income periods (AIP) is here

https://www.gov.uk/government/publications/pension-credit-technical-guidance/a-detailed-guide-to-pension-credit-for-advisers-and-others#assessed-income-period

If there was an AIP in place at 2020 then it is likely to be an indefinite period AIP because of your father-in-law's age being over 75 at 6th April 2016. Was he over age 75? The set period AIPs (e,g. 5 years) will have ended around the time new AIPs were abolished, so if there was one in place at 2020, logically it is very likely that it will have been indefinite.

The link sets out the criteria for an AIP ending. Do any of those apply? Increases in capital from income payments don't end the AIP. So unless there was a reason for the AIP to end, and as long as capital was correctly assessed when the AIP was set, pension credit will have been correctly paid and so the DWP recovery department should pick this up. Whether they will pick this up is a different matter.

Was your father-in-law in receipt of any other benefits such as housing benefit or council tax reduction? These wouldn't be affected by the capital if he was in receipt of guaranteed pension credit, because that gives him automatic entitlement to these benefits. But if he was only in receipt of savings pension credit there could be an issue there as entitlement doesn't apply above 16K capital.

Newly_retired

It took two years of letters and phone calls to get DWP to accept that my mother-in-law was on an AIP and therefore to agree that there was no overpayment. They should have known, of course. It should not be up to the executor to have to prove it.

bob_a_builder

Thanks for the feedback. 

Looking at the link I don't see any reason for the AIP to have stopped - but we'll see 
As a result of the Tell Me Once - DWP have already come back and claimed the natural overpayments between death and notification

No housing benefit (own house), there was a council tax reduction in place 

No mention in the letter of "savings pension credit", but does say "Because your pension credit includes the pension credit guarantee credit you are also entitled to some health benefits ...."

Good to have the heads up that they might want/try/!!!!!! up the acceptance of an AIP being in place

Was worried they might want to claim more back based on savings limits - but from what you say if the AIP is still in place that shouldn't be the case ?

SnowMan

As long as the pension credit was all correctly calculated (i.e. right capital then) when the AIP was set some years ago, and it was an indefinite AIP, then subsequent increases in savings are irrelevant, and are ignored, and so there is no overpayment of pension credit, as you've confirmed there was no reason for the AIP to end.

You've confirmed also that the pensions credit included guaranteed pension credit (it's irrelevant if pension savings credit was paid as well). So the council tax reduction is likely to have been correct also as the guaranteed pension credit should be a passport to maximum council tax reduction regardless of capital (each council has it's own scheme, albeit above pension age they are pretty much all the same, but this is a fundamental part of all the schemes as far as I am aware). So the council shouldn't be coming at you for overpaid council tax reduction either as there is none.

As you say the 'natural' overpayments are a different matter.