Paying debts due from an estate

Executor1974

Hi

My Mum passed away recently leaving no assets and a small overdraft. I'm her Executor. I had to ask the Council to arrange (and pay for) a Public Health funeral.  Mum had been receiving a state pension, pension credit and attendance allowance from the DWP.  After she passed (but before the DWP were aware she had passed and before her bank account was closed) the DWP credited her account with payments for state pension, pension credit and attendance allowance. As she had passed she was not entitled to these.  As a result, her account was about £1k in credit when it was closed. That balance is now sitting in the Executor’s account. 

Here's my question: the Council say the £1k should be paid to them as a contribution towards the cost of the Public Health funeral (which exceeds £1k and which they say takes priority over all other debts) but the DWP say it should be paid to them (because had they known sooner that she had passed they wouldn’t have made the payments - which also exceed £1k - to her account). There are no other debts that might take priority.  Can anyone please tell me who I should pay? 

Marcon

Executor1974 said:

Hi

My Mum passed away recently leaving no assets and a small overdraft. I'm her Executor. I had to ask the Council to arrange (and pay for) a Public Health funeral.  Mum had been receiving a state pension, pension credit and attendance allowance from the DWP.  After she passed (but before the DWP were aware she had passed and before her bank account was closed) the DWP credited her account with payments for state pension, pension credit and attendance allowance. As she had passed she was not entitled to these.  As a result, her account was about £1k in credit when it was closed. That balance is now sitting in the Executor’s account. 

Here's my question: the Council say the £1k should be paid to them as a contribution towards the cost of the Public Health funeral (which exceeds £1k and which they say takes priority over all other debts) but the DWP say it should be paid to them (because had they known sooner that she had passed they wouldn’t have made the payments - which also exceed £1k - to her account). There are no other debts that might take priority.  Can anyone please tell me who I should pay? 

Two links which might help you:

https://www.moneysavingexpert.com/news/2022/01/dwp-has--no-legal-power--to-force-you-to-repay-pension-or-benefi/

and 

https://www.gov.uk/government/publications/public-health-funerals-good-practice-guidance/public-health-funerals-good-practice-guidance#recouping-costs

It's probably too late now but normally if an estate is insolvent, nobody should attempt to administer it, including anyone named in the will of the deceased as an executor. Unfortunately once you've started the process you have to complete it - with the possibility (probably scarier than it sounds, at least in most cases) of personal liability if you pay creditors the wrong amount or pay in the wrong order.

I'd be tempted to send a letter to the local council and DWP, addressed to both of them so they can see the other has received it, asking them to clarify the legal position and saying you will make payment once they have done that, stressing that there are no funds to pay for advice and you are sure that between them(!) they will be able to confirm how you should proceed.

fatbelly

I believe funeral costs take first priority so the council would be correct.

However I can't give chapter and verse.

Age concern do a useful guide

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs14_dealing_with_an_estate_fcs.pdf

buddy9

A deceased person’s estate comprises the assets as owned, or entitled to, at the time of death. Payments made in error or due to lack of notification after death do not comprise part of the estate. Non-entitlement payments should be refunded.

frayedknot

Is it too late to walk away? You have not acted to distribute the estate, simply to secure assets. You have not applied for probate and you didn't even organise the funeral, not that organising a funeral is deemed to be evidence of administration. So tell the council and the DWP to sort it out between themselves because you don't have a dog in the fight.

As an aside, surely these benefits that were received are paid in arrears, I know my pension is.
. It seems strange that the DWP ( not noted for their munificence) are paying up front money to claimants.

Keep_pedalling

frayedknot said:

Is it too late to walk away? You have not acted to distribute the estate, simply to secure assets. You have not applied for probate and you didn't even organise the funeral, not that organising a funeral is deemed to be evidence of administration. So tell the council and the DWP to sort it out between themselves because you don't have a dog in the fight.

As an aside, surely these benefits that were received are paid in arrears, I know my pension is.
. It seems strange that the DWP ( not noted for their munificence) are paying up front money to claimants.

Not everyone is paid in arrears, and it seems the OP has the money in an executor account so a bit late to simply walk away.

BungalowBel

As an aside resulting from this query, who do you contact if you are an executor and the estate is insolvent and you decide not to administer it?  Who does administer it? 

user1977

BungalowBel said:

As an aside resulting from this query, who do you contact if you are an executor and the estate is insolvent and you decide not to administer it?  Who does administer it? 

Any of the creditors can apply to be appointed as executor