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Housing Benefit and over savings threshold
Hi everyone, this is going to sound really obvious but I just wanted to check because it may have quite serious ramifications.
A new client called and stated that an elderly distant relative has died and as she was the only family member, she will be getting some money from the estate. According to her, after she looked at the paperwork, this elderly lady was receiving Housing Benefit but also well over the savings threshold to receive it (£16,000 and not getting pension credit). She has asked if she needs to report it.
Now the obvious answer may be yes - but the elderly lady is now deceased and I would think the onus would be on the DWP to look into finances and makes the relevant deductions before it goes to any relatives? Especially ones so distant with no will etc (probate ongoing)
Essentially - does she need to advise them of what she has found out?
Thank you for any help/advice in advance - apologies if I have left anything out.
DWP routinely check the probate announcements for estates and will request details of savings going back years from the executors of the will in cases like this.
There is a duty on the executors to make sure that the fact they’re settling the estate is properly advertised, see section 8.2 of our Dealing with an estate factsheet.
If they don’t do this and the fact of excess capital only comes to light after they settle the estate, the executors can be held to be personally liable to repay any debts outstanding.
You have mentioned there is no will but not sure that affects things here as, whilst it does mean the estate is distributed according to the rules of intestacy, someone still needs to be appointed to act as executor.
Whether any of that is directly affected by the fact this would be the local authority and not the DWP who have actually paid the relevant benefit, I have absolutely no idea but for peace of mind, I would probably suggest to the client that she should seriously consider disclosing what she has discovered so the estate can repay any overpaid benefits. That may then raise further questions about access to bank accounts and so on that I’m afraid I’m not really qualified to deal with.
I don’t think that this is an obvious question at all.
I do have some thoughts but I think I would treat this one as being much more suitable for direction to a solicitor specialising in wills and probate. They will have the necessary expertise (and insurance) with which to advise.
I don’t think that this is an obvious question at all.
I do have some thoughts but I think I would treat this one as being much more suitable for direction to a solicitor specialising in wills and probate. They will have the necessary expertise (and insurance) with which to advise.
Yeah there is a bit of a cross over from benefits to will and probate law isn’t there. Thank you for your response!
DWP routinely check the probate announcements for estates and will request details of savings going back years from the executors of the will in cases like this.
There is a duty on the executors to make sure that the fact they’re settling the estate is properly advertised, see section 8.2 of our Dealing with an estate factsheet.
If they don’t do this and the fact of excess capital only comes to light after they settle the estate, the executors can be held to be personally liable to repay any debts outstanding.
You have mentioned there is no will but not sure that affects things here as, whilst it does mean the estate is distributed according to the rules of intestacy, someone still needs to be appointed to act as executor.
Whether any of that is directly affected by the fact this would be the local authority and not the DWP who have actually paid the relevant benefit, I have absolutely no idea but for peace of mind, I would probably suggest to the client that she should seriously consider disclosing what she has discovered so the estate can repay any overpaid benefits. That may then raise further questions about access to bank accounts and so on that I’m afraid I’m not really qualified to deal with.
Thank you so much for the thorough response, I will look into the link and advise that she probably needs to seek legal advice from a qualified solicitor, after giving her some brief information. Sorry slip of the fingers, meant LA rather than DWP as it regards housing benefit
It is worth remembering that Probate ( meaning of word is ” proving of a will ” ) does not have to have been applied for to access the deceased’s funds in a bank account depending on the £amount. The bank usually requests the death certificate from a personal representative who doesn’t have to be named in a will as an executor but is usually a beneficiary.