Help with Benefits, Pension , Pension Tax credits and Probate aaagh

jonpickerill

Good Afternoon and thank you for reading this post.

I'll add as much shorthand detail as possible if I can.

I am contacting you (begging you !!) for help on behalf of two Executors of a Will.

Briefly:

Deceased estate

Probate granted

Deceased estate bank contents transferred by TSB into an new account in the name of  Mrs X's account as she is an executor

Property has tried to be sold - seller pulled out at last minute

Executors of the Will have decided to rent for the time being ( both in their 70's and are fed up after 13 months)

Mrs X is a pensioner on a state pension , who claims pension credit / has rent paid etc

There is no other income.

No income to be taken from any profits from rental income ( just expenses) - will be left in the TSB bank account until property is sold - property has been let for 1 year

Q:) Will the fact the deceased estate bank account is in the name of Mrs X affect her pension / pension credit as the income from the rental will be paid into the account setup by TSB in her name to manage the execution of said estate ?

Q:) Do I need to notify HMRC on Mrs x's behalf  ( or the probate government department) ?

Thank you for reading this and kind regards ,

Jon …...

MEM62

Are the executors also the beneficiaries?  Also, no proceeds or assets from the estate should be going into an account in Mrs. X's name.  Mrs. X should open an executors account to handle all monies until probate is grated.   
Mixing the estate accounts with your own will give you a can of worms that will be very difficult to unravel.   

peteuk

I am only going against what my sister went through when faced in a similar situation, she was the Mrs X but is 55 so not at SPA.

Depending on the amount in the bank account holds depends on if it goes to probate, Once probable is issued it is up to the solicitor and will executor to work out what goes where. As per the will.   In our case there was three kids who where to benefit from the will (Total amount split into 3) So we left it there. 

We then managed to sell the property but between the sale and probate being issued we were the owners, so i suspect Mrs X is now the owner or part owner of the property.

Depening on how long it has been since the death and now, the owner is liable for council tax.  In our case the CT was suspended for a year after death but as it took over a year to sell we became liable for the CT between the end of the years grace and point of sale.  Because non of us are on benefits my sister held back the bank account and then on sale of house, it was decided between the three…

So if it has been over a year since the death, then MRs X and who ever owns the property is liable for the CT until the point it is sold/rented.  At which point the new owner/tenant becomes liable.  This period should be, depending on the council, from the point of 1 year from the death until sold/rented. 

Once probable is confirmed then the property is owned by those on the will, and as such you cant hold the money until the house is sold. If thats Mrs X then she owns a property she isn’t living in, so therefore has capital and an income.

Whats happens when the house is sold who benefited from the money in the account and the proceeds of the sale.  (I assume theres no mortgage on the property) 

TELLIT01

At the very least I would have thought the account should be Mrs X (executor to the estate of Y).  As others have said, it certainly shouldn't just sit in an account in Mrs X name.  What would happen if she died and those monies were included in her estate?

Viggobaby111

Just to give people the heads up when claiming pension credit.  I applied on line in 2019 and got 2 different answers. One was no and the other said I could be entitled to £54 per week but because I received a small NHS pension of £70 a month I went with the no. 

I was also over the amount publicised by a few pounds which compounded my going along with the no.

I didn’t look again while last winter and I got the same one no and one £59 per week. I also saw the calculation which took me over slightly, but this time I applied and got it, it is the fact I receive PIP which made me entitled, I was gobsmacked and slightly angry as this meant I should have been receiving PC  back in 2019!!!  Please be aware of this contradictory entitlement example. I have to think I am glad I got it now (glass half full) but it is very annoying snd should not be online. 

Hope this helps someone. 👌