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Debt Management Recovery From Estates Pension Credit

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  • Debt Management Recovery From Estates Pension Credit

    Hi Everybody,

    This is my first post, and hopefully my last! (probably not though) I will try and keep it brief.

    I am the administrator to my Aunt's estate, after completing all formalities, it is unfortunate that DWP Debt Management have raised their heads. They think there have been overpayments in Pension Credit. From all accounts she was quite a poorly lady and on all sorts of benefits when she died at 75 without friends or family. The Council cleared out her flat, and I have been given very little of her paperwork.

    Debt Management have asked me to supply bank statements from 2003 and 2008 of which I've worked out the reason for requesting those 2 dates, these 2 statements have been sent, and they are now fishing for further information regarding an old savings account, which I now know was closed in 2002. Plus they would like to know where she got her capital from, a question I do not know the answer to.

    I have 2 questions for the forum:

    1, A solicitor has told my husband that he thinks they can only claim back 6 years? Or can they claim back to 2003? At the time (2003) she was just over the £10,000 threshold.

    2, Would be better to say no idea where she came by her capital?

    To sum up, I suspect she was overpaid, but I think as she was incapacitated and unable to leave her flat, lived a frugal life, even without an up to date working telly (from a health assessment I found in her papers) and she basically accrued the capital over years.

    Before I reply back to them I would appreciate any feedback from the forum
    Thanks in advance
    Tags: None

  • #2
    Re: Debt Management Recovery From Estates Pension Credit

    Hi there is a thread further down at 7 or 8( D.W.P and recovery from estates),it might help,regards Streetwise.

    Comment


    • #3
      Re: Debt Management Recovery From Estates Pension Credit

      As you'll see from the other thread I've been involved with DWP for overpaid PC for the last year. To answer your questions:

      The 6 year question is answered in the thread but as I understand their legal right is 6 years for information, they can only ask before then.

      I would tell DWP that you understand the savings account to have been closed in 2002, that you have no knowledge of where any capital came from and that you can identify no other assets at that time & between 2003 and date of death.

      I found it was worth explaining our position i.e. yours as administrator, your level of contact with the deceased, and (presumably) no other relatives etc. Depending on the value of the estate and the potential overpayment they may ask for a refund or just abandon the case.

      Hope this helps.

      Comment


      • #4
        Re: Debt Management Recovery From Estates Pension Credit

        Many thanks for your reply. I'll send a letter to them and see what happens

        Comment


        • #5
          Re: Debt Management Recovery From Estates Pension Credit

          Dare I ask how you've got on with this?

          Comment


          • #6
            Re: Debt Management Recovery From Estates Pension Credit

            Hello everyone,
            have
            This is my first time in a forum and I think I posted a reply in the wrong place. I will explain my cirumstances and hopefully someone in the know will pick up my question. I have read previous "threads" and gained some valueable knowledge. My mum died this April and came to live with me in February 2013. I received a letter from DWP Estates Management asking for a record of mums savings which was £35,000. I know the first £10,000 isn't counted and I have worked out she was overpaid £30 a week. Mums bungalow was signed over to me 9 years ago but for inheritance tax she was deemed to still be receiving benefits. The property didn't become mine until she moved in with me in February 2013. My questions are

            1. How far back can they claim overpayments because the bill could be over £100,000. I am aware the bank only provides statements for 6 years.

            2. Can they force me to sell mums bungalow. The time ownership transferred to me seems to differ. I thought it was mine 9 years ago but for inheritance tax it only became mine in April of this year.

            3. Should I request mums bank accounts for the last 6 years so I can go through them?

            Comment


            • #7
              Re: Debt Management Recovery From Estates Pension Credit

              I think you will find if DWP suspect fraud by your mum hiding the money from them they can go back a long time,sorry you wont like this but if she deliberately withheld information she stole from the taxpayer and I would want the DWP to claim back the money.

              Comment


              • #8
                Re: Debt Management Recovery From Estates Pension Credit

                Originally posted by Firemonkey View Post
                Hello everyone,
                have
                This is my first time in a forum and I think I posted a reply in the wrong place. I will explain my cirumstances and hopefully someone in the know will pick up my question. I have read previous "threads" and gained some valueable knowledge. My mum died this April and came to live with me in February 2013. I received a letter from DWP Estates Management asking for a record of mums savings which was £35,000. I know the first £10,000 isn't counted and I have worked out she was overpaid £30 a week. Mums bungalow was signed over to me 9 years ago but for inheritance tax she was deemed to still be receiving benefits. The property didn't become mine until she moved in with me in February 2013. My questions are

                1. How far back can they claim overpayments because the bill could be over £100,000. I am aware the bank only provides statements for 6 years.

                2. Can they force me to sell mums bungalow. The time ownership transferred to me seems to differ. I thought it was mine 9 years ago but for inheritance tax it only became mine in April of this year.

                3. Should I request mums bank accounts for the last 6 years so I can go through them?
                Hello Firemonkey

                So sorry that you have lost your Mum.

                I think your calculation may have a rogue nought in it - £30pw would take approx. 66years to become £100K - also, once her savings were down to £9,000 (I think) she would be entitled to full benefits. - between that and what she had it's a sliding scale.

                Am also a bit confused as to when you actually were given the house? Presumably it was to avoid inheritance tax under the 7 year rule but for that to work she would have had to have had no financial benefit from it after signing it over (ie paid a market rent etc.)

                I'm sure a more knowledgeable Beagle will correct this if I'm wrong but hope it helps.

                In your shoes I would probably invest in a session with an accountant experienced in these matters.

                Good luck.

                Comment


                • #9
                  Re: Debt Management Recovery From Estates Pension Credit

                  Originally posted by Firemonkey View Post
                  Hello everyone,
                  have
                  This is my first time in a forum and I think I posted a reply in the wrong place. I will explain my cirumstances and hopefully someone in the know will pick up my question. I have read previous "threads" and gained some valueable knowledge. My mum died this April and came to live with me in February 2013. I received a letter from DWP Estates Management asking for a record of mums savings which was £35,000. I know the first £10,000 isn't counted and I have worked out she was overpaid £30 a week. Mums bungalow was signed over to me 9 years ago but for inheritance tax she was deemed to still be receiving benefits. The property didn't become mine until she moved in with me in February 2013. My questions are

                  1. How far back can they claim overpayments because the bill could be over £100,000. I am aware the bank only provides statements for 6 years.

                  2. Can they force me to sell mums bungalow. The time ownership transferred to me seems to differ. I thought it was mine 9 years ago but for inheritance tax it only became mine in April of this year.

                  3. Should I request mums bank accounts for the last 6 years so I can go through them?
                  Did your mum make a will and did she bequeath her home to you so that you inherited it on the occasion of her death? Also, was she subject to a Power of Attorney under the Mental Capacity Act 2005?

                  You may need to seek professional legal advice from a lawyer, but I would have thought DWP could not force you to sell a property you had inherited under the terms of a will. Seek professional legal advice anyway to be on the safe side.
                  Life is a journey on which we all travel, sometimes together, but never alone.

                  Comment


                  • #10
                    Re: Debt Management Recovery From Estates Pension Credit

                    That is a little harsh. I am picking up the pieces of mums dishonesty. I acknowledge money has to paid back but mums bungalow is part of my financial future. I didn't steal the money!!!!!!!!!!!

                    Comment


                    • #11
                      Re: Debt Management Recovery From Estates Pension Credit

                      Thankyou for your reply. I have asked mums bank to send me her statements so I can do some calculations. I is my intention to fully co-operate with DWP and send them the bank statements when they request them.

                      Mum and I went to a solicitor 9 yrs ago and the house was legally transferred to me with mum being able to live there and pay a peppercorn rent. I have to say we were not motivated by inheritance tax as we never thought we would be affected by that. Mums bungalow is only worth £150,000 so doesn't meet the £325,000 threshold. However, for their purposes mums bungalow only became mine when she moved out and came to live with me. Everyone has a different criteria which is why I was worried that DWP would still class mums bungalow as part of her estate.

                      Yes, you are right about my initial calculations. I panicked and envisaged a worse case scenario

                      Comment


                      • #12
                        Re: Debt Management Recovery From Estates Pension Credit

                        Sympathy for you but if she claimed money which was unlawful why should you not pay it back from her property?i know of someone who failed to declare they had a private pension of less than 220 a year when the DWP found this was not declared in a benefits assessment they claimed the overpayment back and decided not to take legal action for non declaration. Best to be honest because in the current economic climate this Government will claw back every last penny it can

                        Comment


                        • #13
                          Re: Debt Management Recovery From Estates Pension Credit

                          Thankyou for your reply. The bungalow was not in the will because it had been signed over to me 9 yrs ago. Everything else was bequeathed to me. The solicitor didn't think I needed Power of Attorney because we were just talking about personal possessions and £35,000 in the bank.

                          Comment


                          • #14
                            Re: Debt Management Recovery From Estates Pension Credit

                            I do feel embarrassed and guilty about this. It isn't a problem I can freely discuss. But I have to repeat that I didn't do this and I will fight to keep mums/my bungalow. I realise that benefit fraud is wrong and is especially sensitive because of our national dire straits. I have worked hard all of my life and paid my full tax and and NS contributions. Mums bungalow is now rented and I am in a new world of "tax self assessment". I called them to find out what my tax liability was. I, personally, have never had any intention of defrauding the state.

                            Comment


                            • #15
                              Re: Debt Management Recovery From Estates Pension Credit

                              Originally posted by Firemonkey View Post
                              I do feel embarrassed and guilty about this. It isn't a problem I can freely discuss. But I have to repeat that I didn't do this and I will fight to keep mums/my bungalow. I realise that benefit fraud is wrong and is especially sensitive because of our national dire straits. I have worked hard all of my life and paid my full tax and and NS contributions. Mums bungalow is now rented and I am in a new world of "tax self assessment". I called them to find out what my tax liability was. I, personally, have never had any intention of defrauding the state.
                              Hi Firemonkey,

                              I for one am not judging you - but I suppose different people have different reasons for posting.

                              In many ways, that what these forums are all about!
                              CAVEAT LECTOR

                              This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

                              You and I do not see things as they are. We see things as we are.
                              Cohen, Herb


                              There is danger when a man throws his tongue into high gear before he
                              gets his brain a-going.
                              Phelps, C. C.


                              "They couldn't hit an elephant at this distance!"
                              The last words of John Sedgwick

                              Comment

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