DWP recovery from estates

Shelldean

Rufty1 said:

Shelldean said:

Rufty1 I looked back through my previous comments and found these two. 

Sorry it's indefinite assessed income period. The last two paragraphs!!!!

Assessed Income Period

An assessed income period (AIP) is a period during which your customer does not need to report changes to pensions (we treat payments from the Pension Protection Fund or Financial Assistance Scheme in the same way as a pension), annuities, equity release payments or capital as they happen. Other changes in circumstances still have to be reported.

Section 28 of the Pensions Act 2014 provided for the abolition of the AIP. Since 6 April 2016, no new AIPs have been set, and all AIPs with a specified end-date have now been phased out.

If your customer was aged 75 or over when the AIP was set, it will have been set indefinitely. Your customer may have an indefinite AIP if they were aged 75 or over at 6 April 2016.

Indefinite AIPs already in place at 6 April 2016 will only end if one of the circumstances described under When the assessed income period ends early applies

Second reply 

Was from this page

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



So it was called assessed income period not savings anything. Sorry.

But depending on the age when she started collecting pension credit she may well have been on this AIP. 
 Hubby nan was and so her savings increased as she wasn't spending any and gaining interest. So when she died there was a big discrepancy between what she had when she'd first claimed and what she had when she died. This meant DWP investigated

Thanks again.  Do you mind me asking if you had to pay a load back?  And how long they took to sort it out?  It's been a year already for me.  Mom would have been 70 when she got the credits first.

Nothing was paid back at all. Because OH Nan was on this AIP it didn't matter how much her savings changed she could've won millions on the lottery and STILL claimed her pension credit.
DWP tend to work slowly and I seem to recall it was about 9 months. But my recollection is hazy

madbadrob

HillStreetBlues said:

madbadrob said:

  Debts then are paid in a strict order.  So funeray costs first.  Then secured debts ie mortgages or other loans set against possesions.   Only then do DWP

That's incorrect, secured debt always comes first, but only on the asset they are secured against.
 

Yes they are secured against meaning that until that item is sold there are no requirements to pay off that asset.  Once the executor sells the item the debt is secured against then the monies become payable.  This is why a bank will pay to the person named on the undertakers bill the money they have spent in having the funeral of the deceased person direct from the deceased account even before any requirement of probate is needed.   I should have maybe made my point clearer.  

The funeral debt would in my experience only come second to secured debts if there are no monies in the bank to pay the funeral immediately or the money was loaned to the estate by a third party for the funeral.  Also in reality if there is a mortgage then you wont see the money owed because that is always paid by the conveyacing solicitors prior to the residue being paid to the executor for dispersal.  

Rob