DWP overpayment after estate is finished

[Shon]

My mother died in 2014 and the estate was finished in January . She had been in a care home since 2009 and the DWP and social work dept. dealt with her pension and care home fees. I only received her personal allowance. My sister and solicitor were her executors and probate passed with no problems and money distributed to my sister and myself therefore estate closed. Recently received a letter stating that DWP believe mum was overpaid in her pension and want it back. Surely this is up to them and the social work dept and the executors . Will I have to pay out from my inheritance ? Can anybody help me on this one? Thankyou

[des8]

Re: DWP overpayment after estate is finished

Hi, and welcome to LB.
My condolences regarding your loss.
The accounting of the estate was presumably finalised at least six months after the grant of probate.
As a solicitor was involved it is reasonable to assume that the correct advertisements were posted, and so the executors would not be liable, unless the DWP had issued a caution notice.
yes, the DWP can follow the estate into the hands of the beneficiaries if it still exists in traceable form (eg not spent on household repairs or living expenses etc)

However have the DWP given you a detailed explanation and breakdown of their calculations?
They need to prove the overpayment.

[nemesis45]

Re: DWP overpayment after estate is finished

Hi welcome to LB.

Has this letter been sent to you personally? What is the DWP asking for?
The executor/solicitor should deal with this.

nem

[Shon]

Re: DWP overpayment after estate is finished

Thankyou for your prompt reply. This is the first I have heard of the discrepancy in mums pension and I think the solicitor appointed by my sister , who is one of the executors , may just be asking if I know anything about the pension etc. As my sister and I have been estranged for many years I always think the worst but as I cared for my mothers personal care in the Home he maybe thinks I knew all her financial affairs. Looking through the paperwork , she died on the 14th October and I received the settlement on the 24th November.
According to this solicitor he has not been told the estimated value of the possible overpayment.
The DWP are requesting information from 05/08/2009. I still think it should be between them and the council social work dept.
Its all very worrying and just not sure where to turn although I have sent the solicitor an email in response that it has nothing to do with me. The paperwork sent with the cheque looks in order to me
.

[Shon]

Re: DWP overpayment after estate is finished

No, the DWP have not contacted me just the solicitor appointed to do mums Estate. I'm sure it will sort itself out but just very worried.
Thankyou for getting back to me , much appreciated .

[des8]

Re: DWP overpayment after estate is finished

From what you write I understand the solicitor was not the executor, but was appointed by your sister who was the executor.
As the estate was settled within six weeks of your mothers passing I assume it was quite small and did not require probate.
As the executor distributed the estate so quickly, before creditors had a reasonable time in which to register their claims, the executors are personally liable for any unpaid debts.
The executor should leave at least six months (but ten months is advisable) between obtaining the grant of administration and distributing the estate if they are to
have protection from liability under the Inheritance Act 1975

[Shon]

Re: DWP overpayment after estate is finished

Thank you so very much for your help. As mum had been in a care home (Scotland) for four and a half years there were no debts apart from outstanding care home fees when my dad died less than 12 months previously. They received just over £7,000 and by the time fees, confirmation dues and her half share of my fathers house sale , the total came to £50,234.54 of which my sister and I received half each. Would this amount make a difference ? I can't thank you enough for your help as I never seem to get anywhere with my father solicitors (they are terrified of my sister) . My fathers estate is still not finished although have had an interim payment. Is there a certain length of time before it has to be finished or can it just go on and on? Thankyou so much once again ,I'm so appreciative of your help.

[des8]

Re: DWP overpayment after estate is finished

Scottish law on administering an estate is somewhat different to that applying elsewhere in the UK.
Can you clarify please:
The total value of your mother's estate (including what she inherited from your father)
Was she due any further benefit from your father's estate (which hasn't yet been finalised?)
Has confirmation (equivalent to probate in England) been obtained from the Sheriff's court?
Did your mother leave a will?

What is concerning (for the executor) is the speed at which your mother's estate was settled, as it leaves her open to claims from creditors (eg DWP).

Regarding your father's estate there is no time limit as such on settling an estate. If an estate is large it may take several years.
However the executors should not delay settlement unnecessarily, and if their actions cause the estate to lose value they may be held liable for the losses.
They have to act reasonably,

[Shon]

Re: DWP overpayment after estate is finished

The total of her estate was as above , no further benefit from my fathers estate and confirmation was obtained. Mum left a Will which was basic in form if dad died first , she was beneficiary and visa versa then if both dead to be divided equally between her two daughters. The total figure before the solicitors fees and confirming dues was £51,903.99. There was still a mortgage on the house which was paid from the proceeds of the house sale, leaving £44,162.60 to be divided between sister and myself .
Dads estate isn't large and have no idea why it's taking so long but I guess the interim payment of £30,000 is due to the sale of the house completion and the half of a joint bank account . Thank you so much again.

[Shon]

Re: DWP overpayment after estate is finished

Should I stop worrying so much ???

[des8]

Re: DWP overpayment after estate is finished

I don't think there is any point in worrying.
The executors perhaps should!
If they distributed the funds too early (ie before the expiry of 6 months after date of confirmation) they are liable to pay any creditors who make a true claim within that time.

Regarding your late father's estate,as a beneficiary you are entitled to write asking for an accounting. Of course if a solicitor is dealing with the matter he will charge the estate for replying to you!

[Shon]

Re: DWP overpayment after estate is finished

The solicitors dealing with dads estate won't give me a statement of account until the estate is totally finished . Odd , me thinks but I'm so fed up with it all I'm leaving them to it.
Ill stop worrying ( quite so much) about this DWP problem and I will certainly keep you informed of any updates.
You have helped me so much today , thankyou very much ,