dhss claim from mothers estate

[cezz]

after my mother passed away she had an estate of 32k now the dhss are claiming back moneys from this but if it wasnt for the fact 15 yrs ago my parents took out a equity loan on there property to pay for the free hold on there house. the sum of 25k . with an interest rate of 8% now accumulating to the amount of 80k interest still being added as the house still not sold but once the property is sold this 80k loan has to be paid back although they felt secure in there retirement that they had a little bit of money in there accounts when they were both was alive . but when my dad passed away the remaining moneys went to my mother although this was in her bank/building society account she was obviously unaware of her entitlement being an elderly person .with health problems after her death the dhss are now claiming back money as she was in recipe of pension credits if they hadn't borrowed that money in the first instant then she would of most defiantly been entitled to benefits is there anyway we can dispute there claim as to the nature of this issue thanx help most appreciated

[enaid]

Re: dhss claim from mothers estate

Hi and welcome, sorry for your loss.
When did your mum start to claim Pension Credit?
Do you have any letters regarding the Pension Credit as to the Assessed Income Period of the benefit?

[cezz]

Re: dhss claim from mothers estate

not sure to be honest im guessing when my dad passed away in 2012 as the dhss are asking for bank statements from that date in which my mother would of inherited my fathers share of the equity loan moneys. although they are in the process of investigating and what ever moneys they are claiming back surely thats unfair as to the fact we have to pay nearly 80k back for a loan of 25k from the sale of the house to the equity loan company so in theory this money wasnt savings it was money left from the loan surely i can appeal against there decision

[enaid]

Re: dhss claim from mothers estate

Equity release schemes can unfortunately affect benefits.
Pension Credit is a minefield and often the only way any mistakes or wrong doings come to light is after a bereavement.
If the money was inherited in an Assessed Income Period (AIP) then it would not have to be declared.


If you are over the age of 65 you may be given a Pension Credit award that lasts for 5 years or longer. This is known as the assessed income period (AIP). During this period annual adjustments will be made automatically for increases in your state and private pensions and you do not need to report most changes in income, such as increases in your savings, private pensions or income from annuities.

It is useful to record when your assessed income period ends so that you know when award changes may take effect. The calculator’s estimate should be checked again when the assessed income period ends.
Indefinite assessed income periods

You can have an indefinite assessed income period (open-ended AIP) if you or your partner are aged 75 or over.If you are eligible for an open-ended AIP you will no longer have to report changes to most kinds of income you receive, unless the change would increase the amount of Pension Credit you receive. Changes you do not have to report if you are eligible for an open-ended AIP include:

• income from equity release schemes
• income from annuities or private pensions
• savings or investments

Not everyone is awarded Pension Credit with an AIP, so you may need to check whether these rules apply to you. If they do not, then changes to all your income and capital must be notified in the normal way