Overpaid Private pension on deceased person

doodling

Hi,

The bare fact is that (assuming the pension company got their sums right) the executors owe this money to the pension company.  It is the executors decision whether they choose to recover the money from the beneficiaries (they are entitled to, but that process has no bearing on paying the pension company).

Whether the pension company is willing to write it off due to the delay in notification is something that will only be determined by negotiation.

A judge would be bound to find in favour of the pension company (legally they have no choice) but given the delay on the part of the pension company may be willing to order a delayed or phased repayment by the executors.

Marcon

artyboy said:

I'm with Brie on this one - yes we on this board are a bit more au fait with the sometimes glacial pace of pensions administration. But for a typical lay executor, to be told that there was an overpayment, 18 months after notifying the Pension company of death, is not IMO reasonable. 

The estate has been distributed, there is no money left to pay the £300, as an executor I'd be telling the Pension co that they had more than enough time to make their claim, now it's too late. Obviously 6 years for legal claims etc... but I wonder what a judge would make of an 18 month delay if it ever got that far...

You can tell them whatever you like, but it won't alter the legal position. The executors failed to ensure that all claims were settled before distributing the assets, so it is now the executors who are personally liable (and they could in turn pursue the beneficiaries, but that clearly isn't going to happen here).

Having dished out that load of cold water, I think it's worth writing to the pension provider and asking why there was such a long delay - a delay which meant that the estate has already been distributed. One of three things will happen:

1. They will refer you to previous correspondence from them, confirming that an overpayment was made and asking for their money back
2. They will wriggle and say the money is due, rhubarb rhubarb
3. They'll write it off, or at least reduce it.

Albermarle

 One of three things will happen:
1. They will refer you to previous correspondence from them, confirming that an overpayment was made and asking for their money back
2. They will wriggle and say the money is due, rhubarb rhubarb
3. They'll write it off, or at least reduce it.

Although whatever happens, it will most likely happen at the usual glacial pace.....

artyboy

And of course the executors could make a formal complaint over the poor/delayed administration here. Given the cost to the pension co, especially if taken all the way to the ombudsman, that could well make them realise it's just not worth pursuing £300 over... 

Marcon

artyboy said:

And of course the executors could make a formal complaint over the poor/delayed administration here. Given the cost to the pension co, especially if taken all the way to the ombudsman, that could well make them realise it's just not worth pursuing £300 over... 

Without knowing all the details, it's impossible to know if there has actually been maladministration. If the provider wrote to the executors and they simply didn't note what they'd received/act on it, any complaint would be uncompelling, especially if this is a tiny annuity paid at much longer intervals than monthly.

artyboy

Also... to those of you applying a very black and white lens here that there is a debt and no legal process would alter that - how far can that go? I'm not sure we have clarity of what the precise correspondence was in this case, but 2 potential scenarios:

1) Letter notifying of death states that if the executors don't hear back within a reasonable time (let's say 12 months to be generous), then they will assume the matter closed and can fully distribute the estate. Nothing is heard back.

OR

2) The pension co does actually respond to say that there is nothing outstanding.

They then come back in 18 months (or even 2,3, 5 years later) and say "oopsie" because they made an error and money was overpaid. And yes, we know from other threads here that administrators do screw up quite badly sometimes.

The estate has long ago been distributed and possibly spent. The executors have demonstrably acted in good faith and have made reasonable efforts to determine no debts owing. It wasn't their pension so not like they could easily have worked it out either.

Is there no principle of equity here that would override a hard legal judgement against them being personally liable?

doodling

Hi,

artyboy said:

[...]

Is there no principle of equity here that would override a hard legal judgement against them being personally liable?

The executors can place a notice in the gazette which after a period protects them against personal liability.

That doesn't protect the beneficiaries however who remain at risk until the relevant statutory limitation period expires.