Universal credit - how will being executor of my mum's bank account affect my benefits?

tammylouise7

I'm on universal credit (disability related).  

My late mum made me the executor of her bank account, so it's my job to have her savings transfered into my bank account and then share it out with my siblings.

Will the DWP treat the entire amount as my income, or only the part of it that I keep for myself?

GavCB

If you were to open an Executor account to transfer her funds into, this may help avoid any issue with your UC. 

Keep_pedalling

You should not transfer the money into your personal account, you need to keep the money separate. Lots of banks do not do executor accounts. Ask your mother’s bank if they will open one for you, if they won’t ask your own bank if they can open one. 

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6652348/universal-credit-how-will-being-executor-of-my-mum-039-s-bank-account-affect-my-benefits

It is not your job as Executor to transfer the savings into your bank account and then share it out.

It is your job as Executor to distribute the assets of the Estate in accordance with the terms of the Will. Make those distribution payments direct from your Mum's account to the respective recipients. If that is not possible, open an Executor's account to allow the funds to be processed.

KxMx

Executors accounts aren't actually possible in every circumstance - I'm expecting to be in the same position sooner rather than later, no will & no letters of administration required (due to estate being money only the value of which is under probate limit for both banks) means an executor account isn't possible.

I'm planning on opening a general account in the name of "KxMxExecutor" to cover myself with Universal Credit until final distribution to beneficiaries (myself & sibling).

I don't see what else I can do.

Altior

In either example, if an executor account isn't possible, why not distribute it directly from the original account? On the same day, in the proportions required, is an adequate audit trail.

Grumpy_chap

If it becomes impossible to obtain an Executors account, is it possible to pay the money into another Beneficiary's account (who might not be on UC) and distribute from their? I assume a good level of trust between Beneficiaries.

Alternatively, UC looks at balances on the last day of the AP. If the Executor receives the money in the day after AP date and distributes quickly, the money will not be in the account by the time the next AP is reached. If the amount to actually be inherited by the Executor is high, then it will be above limits for UC regardless.

peteuk

https://forums.moneysavingexpert.com/discussion/comment/81856484#Comment_81856484

For broader consumption, I would discourage such in/out action in case there is bills etc to pay. If unable to set up an executor account then I would suggest opening a new account transfer the balance in to this and then declare it as your mothers estate to be distributed once everything settles.

Equally if there are any benefits owed to your mothers estate they can be paid into this.

When my father passed, his house went to probate but his account was under the threshold, thankfully my sister who had the POA for years, had a good relationship with the bank and so they were really helpful. I know it made things easier for us.

Grumpy_chap

"

I would discourage such in/out action

"

I agree, generally. It is just in this case, the OP references "

have her savings transfered into my bank account and then share it out with my siblings

"

I assumed that Mum must have, in the grander scheme of things, relatively modest assets assuming the OP does not have an unusually high number of siblings. If the OP's share of the Mum's Estate will be above £6k once all the portions have been distributed, then the means-tested benefits received will be affected as per the taper.

If there is, say £20k in the Mum's Estate and that is split between 4 off-spring, so £5k each, it is all rather more explainable should a DM ask than there being, at some point, say £200k yet the OP's share end up less than the thresholds that affect means-tested benefits.

I note the OP also states "

I'm on universal credit (disability related).  

"

Some of their benefits might not be impacted by means-testing even if the amount the OP has after the distribution of the Estate is above £6k.

One other thing I just noticed is the OP's final comment "

Will the DWP treat the entire amount as my income, or only the part of it that I keep for myself?

"

AIUI - inherited resources are never income for the purposes of UC but are immediately capital.