Disregarded Capital After Death?

Bat125

Hi. 

My father passed away in 2021. 

He was in reciept of benefits five years prior to his death but was initially refused them due to owning 1/6th of a piece of land with his share exceeding the 16000 threshold. 

After the other Co owners signed to say it couldn’t be sold as they did not want too, my dad started recieving benefits. It appears it was disregarded. As he couldn’t access the value in the land. 

This land is now being sold under section 15 TOLATA and forced by one of the parties. After my fathers death. 

Could the DWP have a claim against this now realised, but previously disregarded asset when he made his benefits claim originally? He was honest at the time. 

We are just concerned they could make a claim against his estate in retrospect if you like?

Surely if they agreed his claim at the time given all correct information that was known and provided at the time then they have no claim for all his benefits back? As he needed them at the time as the capital could not be accessed but now can after his death?

if we need to do probate will this get picked up?

Keep_pedalling

I don’t think anyone will know the likelihood of  a challenge from the DWP, but you will need probate the land can’t be sold without it. 

Seasalt3

When probate is granted if the deceased received benefits during their lifetime the DWP will check their records against the assets held at date of death and may ask for more information from the executors. They will also warn you not to distribute the estate until they have completed their investigation 

Bat125

Hi. Thank you for your response. I have since found out some more information.

It seems the DWP decision maker at the time did not disregard the asset but on all balances of probability estimated my father’s share at 13.500. This meant he recieved benefits but had some deductions based on this capital. It was declared honestly by my father at the time as best he knew and the decision maker at the DWP estimated the recoverable value of forced to sell (which they can do apparently).

When my father died my brother did tell us once and just took my dad’s name off the deeds. As he couldn’t maintain it. On the promise that if ever sold my auntie would ensure we got our fair share. Probably naive but with honest intent.

I now have to do probate due to a medical negligence claim we have against his negligent medical treatment. And we have a strong case.

So essentially the land has to be included. We can’t just not include it. 

His share is worth 80k as it’s now sold subject to contract. Which my auntie is not denying us. 

But this far exceeds what my father and the WDP decision maker put on his claim. 

This is really frustrating and a complete mess. I rang DWP and they said it was valued on his original benefits claim by the DM at the time based on all probabilities given it couldn’t be sold. And that my father had been honest. She also said it’s recorded that he had 13.500 in capital with regards to this land by the decision maker. This is far lower than the now sale value of his share. I think they factored in costs they would incur on forcing the sale. But they cannot say what would be triggered upon doing probate? So she emailed a different department and waiting on hearing back from them within 3 days. 

It’s very frustrating as we have all been honest at the time. We are just not legal minded. 

Bat125

Any clarification on what May or may not happen or what we can and can’t do would help. As it’s quite wiring and strsssfull
and emotional.