DWP Debt Recovery from estate

Regalia6969

Hi everyone,

I have received grant of probate for a recent bereavement. However have now received a letter from DWP (RELB26) asking for "information about the estate with details held at the time benefit was paid" and a form asking for a lot of the information I already provided when doing the probate application.

After checking bank statements, I found what I believe to be the Savings Credit portion of Pension Credit going into her account (approx £15 a week), as her state pension was over the threshold for Guaranteed Credit, and she had over £10k saved in the bank.

After she died we found another approx £12k in cash, which was included in the probate valuation. What I'm now worried about is this: We don't know how long she had/was building up this cash fund, or how long she had been receiving this pension credit. Are we now going to be expected to pay DWP back all of the pension credit she had been receiving because of this cash? Any advice would be appreciated.

NedS

You will need to declare the cash along with any savings so that DWP can determine if there has been an overpayment of benefits. All you can do is declare the facts as you know them, i.e, that there was £12k in cash, and you do not know how long they held this amount of cash. Is there any evidence in bank statements to show cash withdraws to give an indication over what period this cash was built up?

If there has been an overpayment of benefits (Pension Credit), then this will need to repaid from the estate by the executor(s), as all debts must be, before the remaining estate is distributed to any beneficiaries.

peteuk

Surly It will be difficult to work out when the £12K was accumulated. 

pmlindyloo

The DWP often send a letter requesting information after a person has died.  This does not mean that there has been an overpayment of benefits.
If you are correct that she was receiving only the Savings Credit Pension then it is probable that there are no overpayments.

There are two different kinds of Pension Credit - Guarantee Pension Credit  and Savings Pension Credit,
Have a read of this  for an understanding of the difference.
Pension Credit: What you'll get - GOV.UK

Since you are unsure what she was receiving exactly then it might be worth a telephone call to find out. I telephoned after receiving such a letter and found them extremely helpful.
Good luck.

Regalia6969

pmlindyloo said:

The DWP often send a letter requesting information after a person has died.  This does not mean that there has been an overpayment of benefits.
If you are correct that she was receiving only the Savings Credit Pension then it is probable that there are no overpayments.

There are two different kinds of Pension Credit - Guarantee Pension Credit  and Savings Pension Credit,
Have a read of this  for an understanding of the difference.

Since you are unsure what she was receiving exactly then it might be worth a telephone call to find out. I telephoned after receiving such a letter and found them extremely helpful.
Good luck.

Thanks for your response. I actually did speak to DWP and they explained that it's a standard form for anyone who received means-tested benefits at their time of death. I didn't think to ask what benefit it was at the time. But based on the facts that she had about £15k saved in the bank, her state pension and other income was above the minimum top up for a single person for guaranteed credit, and her retirement age was before 2016, I believe it must have been savings credit. My concern is just whether or not I'll be expected to repay it from the estate due to these extra cash savings, she always said she wasn't receiving pension credit so I'm concerned that she didn't quite realise what she was getting.

Regalia6969

peteuk said:

Surly It will be difficult to work out when the £12K was accumulated. 

Absolutely, and I'm worried DWP will expect me to try and acquire this information myself from her bank statements, etc. Thereby massively extending the probate process for us...

Regalia6969

NedS said:

You will need to declare the cash along with any savings so that DWP can determine if there has been an overpayment of benefits. All you can do is declare the facts as you know them, i.e, that there was £12k in cash, and you do not know how long they held this amount of cash. Is there any evidence in bank statements to show cash withdraws to give an indication over what period this cash was built up?

If there has been an overpayment of benefits (Pension Credit), then this will need to repaid from the estate by the executor(s), as all debts must be, before the remaining estate is distributed to any beneficiaries.

That's all I plan on doing, presenting the information to match the values I submitted for probate. A DWP rep did tell me it doesn't have to be exact as our values were estimates and the inquiry makes no reference to things like chattels or home contents value. I am fairly certain she was receiving the Savings Credit portion due to her financial situation and age as she always said that she earned too much to receive PC. Apart from the odd withdrawal, there doesn't seem to be a consistent trail of timescale this cash was accumulated in. Although I only have a few bank statements from over the past 4 years.

peteuk

Regalia6969 said:

peteuk said:

Surly It will be difficult to work out when the £12K was accumulated. 

Absolutely, and I'm worried DWP will expect me to try and acquire this information myself from her bank statements, etc. Thereby massively extending the probate process for us...

It could be argued that if there was £100 a month withdrawal over tha last 10 years then the £12K has been squirrelled away, but what happens if she went and put a bet on the national every year and kept the winnings aside.  In the absence of betting slips and awareness of which bookie she used  you can never say it did or didnt happen. Did she have a car one day and not the next?  the £12K could have come from anywhere is the point im making.