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Original poster

DWP asking for incorrect payment back 3 months after someone's died

49 replies

Anselma · 12/10/2023 13:11

My 97 year old mother died 3 months ago, she was on benefits and lived in sheltered housing. Her estate amounted to a few thousand pounds in Premium Bonds and a small amount in her bank account. Funeral was prepaid.

We (my mother, me and my 5 siblings) had agreed that any money she left would be divided between her younger grandchildren, and that I, as the eldest "child" should deal with the finances.
When her death was registered the registrar said that relevant organisations including the council and DWP would be informed immediately.

Since then I've refunded housing benefit overpayments, and paid debts due. Three days ago I assumed enough time had elapsed and distributed the money that was left to the grandchildren.

Today have had a letter from DWP Debt Centre about my mothers Pension Credit asking for me to pay them money that was "incorrectly paid into the nominated bank" ie my mother's bank, after she had died.

Am I liable for this payment?

OP posts:
prh47bridge · 12/10/2023 13:24

Unless the DWP previously confirmed that there was no money outstanding, I'm afraid you may be personally liable unless you can recover the money from the grandchildren.

trevthecat · 12/10/2023 13:24

Sorry for your loss.

I would say yes, you are liable. Its an overpayment and should be paid back.

RainCloudsInTheSky · 12/10/2023 13:35

Oh no. How much is it? I hope it’s do able for you to recover the money from the grandchildren.

unfortunately 3 months isn’t enough time. We are still dealing with things 6 months on and I expect it will continue for a while.

Original poster
Anselma · 12/10/2023 13:46

DWP were told of my mother's death 3 months ago, her bank account was closed within a few days so the payment must have gone in before then. Surely three months gives them plenty of time to discover their mistake?

The registrar told me that relevant organisation would be informed of her death and there was no need for me to contact them.
There was a housing benefit overpayment and I was informed about this 5 weeks ago and paid it.
I can afford to pay if I have to but don't understand why they took so long to tell me that money was owed.

OP posts:
ComtesseDeSpair · 12/10/2023 13:50

Three months is nothing in DWP timescales (and nor, really, in statute ones: as with most other organisations reclaiming debts and overpayments, the DWP has six years to recover any overpaid benefits.) If the money was overpaid then it needs to be repaid.

Original poster
Anselma · 12/10/2023 13:52

RainCloudsInTheSky · 12/10/2023 13:35

Oh no. How much is it? I hope it’s do able for you to recover the money from the grandchildren.

unfortunately 3 months isn’t enough time. We are still dealing with things 6 months on and I expect it will continue for a while.

It's £350 which I can afford, I won't be asking the grandchildren for it back or telling my siblings.

Perhaps I didn't look into things well enough, but when I looked online to find out how long to wait before distributing an estate (when probate or letters of Representation weren't needed) there was very little info.

OP posts:
user1497207191 · 12/10/2023 13:54

Anselma · 12/10/2023 13:46

DWP were told of my mother's death 3 months ago, her bank account was closed within a few days so the payment must have gone in before then. Surely three months gives them plenty of time to discover their mistake?

The registrar told me that relevant organisation would be informed of her death and there was no need for me to contact them.
There was a housing benefit overpayment and I was informed about this 5 weeks ago and paid it.
I can afford to pay if I have to but don't understand why they took so long to tell me that money was owed.

Did you not check her bank statements to see what monies had been paid in after the date of her death? Also, some benefits are paid in advance, so part of any payments made in the month or so before her death could well have been "overpaid" and due for repayment.

3 months really isn't a long time for organisations to check their records and calculate over/underpayments. After all, average times for probate to go through is 6-12 months, even without a property to sell. These things take time.

Sadly, you've been too quick off the mark.

Quisquam · 12/10/2023 13:59

Surely three months gives them plenty of time to discover their mistake?

Apparently not. MIL died in February. The DWP wrote to DH to say, he should not distribute any of the estate (and probate has been approved), until they have investigated if a repayment was due to them. They wrote a few weeks ago (so 7 months after her death) to say there was a repayment due to them!

caringcarer · 12/10/2023 14:03

Surely you must have been able to see your Mum had received PC for the last 3 months. It would be on her bank statement. It would be paid automatically before that department got notified. I thought everyone knew it is usual to take between 6 months and a year before distributing any monies to beneficiaries. You'll have to repay the money. Sorry your Mum died. It is a difficult time I know.

Missingmyusername · 12/10/2023 14:04

Ex DWP

No you don’t have to provided YOU informed them. You can’t rely on other agencies to do it for you.
The stop needs to go in immediately to avoid overpayment so you usually need to ring and they will suspend the claim. Payment may have been issued and they should be able to tell you this on the phone. If you did inform them immediately and they carried on paying, they can ask for it back and you can say no.
They can try it on of course….

Original poster
Anselma · 12/10/2023 14:05

Quisquam · 12/10/2023 13:59

Surely three months gives them plenty of time to discover their mistake?

Apparently not. MIL died in February. The DWP wrote to DH to say, he should not distribute any of the estate (and probate has been approved), until they have investigated if a repayment was due to them. They wrote a few weeks ago (so 7 months after her death) to say there was a repayment due to them!

Thanks, I wonder why they didn't write to me? Would have had no problem waiting longer to distribute the funds.

OP posts:
gotomomo · 12/10/2023 14:06

Distribution of funds is not advised until at least 6 months or 3 months after probate is granted, in fact dwp cannot make a claim until probate is granted where applicable. Theres advice on the .gov website

Original poster
Anselma · 12/10/2023 14:09

Missingmyusername · 12/10/2023 14:04

Ex DWP

No you don’t have to provided YOU informed them. You can’t rely on other agencies to do it for you.
The stop needs to go in immediately to avoid overpayment so you usually need to ring and they will suspend the claim. Payment may have been issued and they should be able to tell you this on the phone. If you did inform them immediately and they carried on paying, they can ask for it back and you can say no.
They can try it on of course….

The Registrar told me they would be informed immediately and there was no need for me to contact organisations.

The fact that they knew my name and address and knew I was administering the estate shows they received the info from the registrar

OP posts:
ActDottie · 12/10/2023 14:12

Her estate will be liable, if you’ve already distributed the money then yes you’ll have to pay it back.

Quitelikeit · 12/10/2023 14:18

I’m surprised she was overpaid

DWP don’t pay in advance.

A look at her bank statement would have told you that they had not been told on time

Whatnowfgs · 12/10/2023 14:20

I think you should write to them and explain that the estate has been distributed and it's no longer available to payback the money. I think they will write it off in this situation

RainCloudsInTheSky · 12/10/2023 14:28

Anselma · 12/10/2023 13:52

It's £350 which I can afford, I won't be asking the grandchildren for it back or telling my siblings.

Perhaps I didn't look into things well enough, but when I looked online to find out how long to wait before distributing an estate (when probate or letters of Representation weren't needed) there was very little info.

Show quote history

I’m glad it’s affordable for you. It is all such a minefield.

I’ve only just learnt on this thread that even after probate is granted you’re still recommended to wait a while before distributing the estate. I didn’t realise that and haven’t read it anywhere (although the executor dealing with probate may have been informed).

Timewasterextraordinaire · 12/10/2023 14:32

I think you are advised to advertise the death and wait a number of months before distribution of the estate . I had to pay back an erroneous overpayment to DWP on my fathers estate .

Quisquam · 12/10/2023 14:33

DH had lasting power of attorney and was an executor, along with his sister. He applied for probate.

Were you the executor?

HumourReplacementTherapy · 12/10/2023 14:43

My DM died just before last Christmas. The registrar provide a code to use for 'tell us once' and I had to do it. The registrar didn't.
Even so, DWP continued to pay attendance allowance in jan then again in feb. I phoned them separately at that point as obviously the tell us once service didn't work.
They haven't asked for it back yet but I have it in a separate account as I know it's an overpayment- even though they were informed
I would check again if I were you OP. I don't understand how a registrar could notify passport/dvla/HMRC/DWP etc but maybe otherareas operate differently

Original poster
Anselma · 12/10/2023 14:54

HumourReplacementTherapy · 12/10/2023 14:43

My DM died just before last Christmas. The registrar provide a code to use for 'tell us once' and I had to do it. The registrar didn't.
Even so, DWP continued to pay attendance allowance in jan then again in feb. I phoned them separately at that point as obviously the tell us once service didn't work.
They haven't asked for it back yet but I have it in a separate account as I know it's an overpayment- even though they were informed
I would check again if I were you OP. I don't understand how a registrar could notify passport/dvla/HMRC/DWP etc but maybe otherareas operate differently

Thanks for this, you've helped me remember! The registrar DID give me a "tell us once" code. So they didn't contact the organisations, I did it using the code. Gave all my contact details and checked the boxes. And as I said in previous post, they must have got my details to know who and where to write to.

OP posts:
RainCloudsInTheSky · 12/10/2023 15:00

Did you tell the bank that she’d passed? When we did that they froze her account which meant nothing else could be paid in so no overpayments. If you told the bank then maybe you can ask to have the payment made void as not your fault?

Redlarge · 12/10/2023 15:03

I thought debt ended when the person died. Id contact the citizens advice

titchy · 12/10/2023 15:09

Redlarge · 12/10/2023 15:03

I thought debt ended when the person died. Id contact the citizens advice

Not unless the estate is insolvent. Funeral costs are the first to be paid, then HMRC, then any other debts. If there's money left over after all that then the estate can be distributed.

titchy · 12/10/2023 15:09

If her bank account was closed immediately after death though where did the pension get paid to?