Does the probate office inform DWP / do DWP check probate records?

[Thedayb4youcame]

I have spent several months executing a will. The solicitors did all the legal side (probate, bank accounts, property transfers etc) and I did all the running around & admin.

Several beneficiaries are on means-tested benefits which will be compromised by their inheritance. Some beneficiaries have taken their share of a property rather than sell it and taking the money.

The total of their individual inheritances are far greater than the total allowed by the DWP for those on means tested benefits, although the actual cash payout is between the two thresholds (it's the share of the property that bumps it up).

I have no idea if any of the beneficiaries intend to inform the DWP of any or all of their inheritance, and this is not my problem. However, it does not stop me worrying about their future.

I have been all over the internet, and nowhere can I find anything that says the solicitor or whoever can proactively inform the DWP - it seems that the claimants have to do this, because the only option for a 3rd party is to log a potential fraud investigation application. This is despite me reading that the DWP regularly check probate records.

Has anyone had experience of this? If so, how long did it take the DWP to contact the claimants?

Thanks in advance.

I don’t believe they checked when my mum received some inheritance. It was just a bit over the threshold. She paid off some debts and pre arranged her funeral, which took her back under. She never mentioned it to the DWP and they never got in touch about it.

The DWP are conducting a lot of reviews of claims at present so it will come to light I expect at some point. Much better if they declared it correctly.

This is not your problem . You execute the will and make the payouts. The consequences of that are nothing to do with you.

@YummyCookie @RaininSummer

Thank you both for your replies. FWIW, while I am all in favour of the claimants being honest and updating the DWP with their situation, I think it's a pretty poor show that no facility exists for a 3rd party to send this information to the DWP either.

It stands to reason that if the DWP is checking the probate records that it will all come to light at some point, but why oh why there is no provision for, say, a solicitor or an executor to update the DWP is beyond me.

@Misthios This is correct - I said the exact thing in the fourth paragraph of my original message.

It does not stop me worrying about the consequences, because the beneficiaries are very much well known to me. Aside from this, as a tax-payer and member of society I also have opinions on what I think is fair when it comes to benefits, and the the word in itself explains that situation clearly - they are to "benefit" those in need. The people I speak of have now been very well provided for by the person who died and are far from in need any longer.

That.

Exactly.

https://www.gov.uk/report-tax-fraud You can report here

For benefit fraud https://www.gov.uk/report-benefit-fraud

If someone on benefits gets an inheritance that takes them over the threshold then its up to that person to declare it, otherwise DWP can prosecute them for fraud. You best way forward is to remind them of this when you hand the money over.

However. If the inheritance is used immediately to pay off debts or buy new windows that desperately need replacing which brings the inheritance level back under the limit then it probably won't need to be declared. It's the keeping but hiding of it, or spending on expensive cars or holidays, that is the problem (depravation of assets?).

Yeah gods forbid they have a pound or two over the threshold .

Someones linked the reporting page OP.

As the solicitor won’t do notify the DWP I guess it falls to you 🙄

interesting thread 3 days before a GE.

I would suggest that you carry out your task and leave it at that.

What they do or don't do is not your business. Your pseudo concern is mean minded.

I would mention it to the recipients assuming they are people close to me. I wouldn't insist or hector, just make sure they know they should update their circumstances. Better than them finding out 2 years down the line and having to repay or worse.

HMRC share information (legally under GDPR) with DWP and Councils who administer benefits.

This covers income capital savings and house ownership.
investigators also follow up wills and estates with probate court as all that info is public.

Off on a tangent but, coming off benefits might not be a bad thing for them, depending on circumstances. I knew someone on DLA for mental health reasons, just couldn't cope with the pressure of life, definitely NOT faking. Dealing with the benefits system itself was making this person a whole lot worse. She received an inheritance and the very first thing she did was cancel all her benefits. She bought a small flat, and then just lived carefully and frugally on the money. Her mental health improved enormously, one of the main pressures in her life was lifted. After a year or so, her confidence even built up enough she got an (easy) part time job. It was brilliant to see.

@Thedayb4youcame There is one situation where the value of the house can be disregarded. This is where the house is occupied by a close relative as their home and that relative has limited capability for work or has reached the qualifying age for state pension credit. At least when it comes to Universal Credit.

The definition of "close relative" is a parent, parent in-law, son, son in-law, daughter, daughter in-law, stepparent, stepson, stepdaughter, brother, sister and if any of those listed has a partner, that partner.

So, for example, if the beneficiaries who have inherited the house are related in some way (eg siblings) then if one of them, who either has limited capability for work or who is retired, moves into the house and uses it as their home then the value of the house is disregarded for all siblings.

Source: Universal Credit Regulations 2013, Schedule 10 para 2

https://www.legislation.gov.uk/uksi/2013/376/schedule/10/crossheading/premises/made

Also, with any cash received this will also be disregarded for six months if it is to be used to make essential repairs or alterations to a person's home.

So, for example, if the money were to be used to replace a faulty boiler or deal with damp. Or perhaps make alterations to the home to make it more suitable for someone with a disability. In these cases any money which is to be used for these things is disregarded for 6 months.

Source: Universal Credit Regulations, Schedule 10 para 15

https://www.legislation.gov.uk/uksi/2013/376/schedule/10/crossheading/amounts-earmarked-for-special-purposes/made

If any of them are intending to spend the money like this then it may be best for them to advise Universal Credit of this via their Journal.

To clear your conscience, could you write/email to remind all recipients that if on benefits, an inheritance could tip them over the limit for receipt of benefits, and as such it is their responsibility to declare it www.gov.uk/universal-credit/eligibility. Likewise you could also advise if they've inherited a significant sum, it would be advisable for them to contact a registered financial advisor, listed here:https://www.fca.org.uk/firms/financial-services-register in order to obtain the best advice for use of the money for their circumstances.

I can't see why it's your responsibility, but it would be kind to remind them.

@Another2Cats not sure I read read Sch 10 para 15 as flexibly as you do.

Is it not intended to disregard grants etc over a reasonable period while work is commissioned and completed?

If there was a condition in the will that Mary Jane use her legacy for the purpose of doing up her home it might be arguable that para 15 is applicable but I don't think it covers money given unconditionally just becuase Mary Jane intends to spend in on a boiler etc.

If you look at the DWP "Advice for Decision Making - H: Universal Credit", which gives advice for decision makers, it says the following on this topic:

Amount for repairs

H2123 Where, in the past 6 months, a person has acquired a sum of money by way of a loan, grant or otherwise which is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person’s home, that amount can be disregarded from the calculation of that person’s capital but only where it is used for that purpose1 .

1 UC Regs, Sch 10, para 15

Emphasis added. The advice states that it does not matter how the sum of money has been acquired. The person could have taken out a loan or inherited the money and it would still be disregarded as long as it was actually used for the correct purpose.

Source:

https://assets.publishing.service.gov.uk/media/654111fb1f1a60000d360b54/admh2.pdf

@Another2Cats fairynuff, I was just looking at the Regs.

I know it's a different situation but when my dh (who wasn't on benefits at the time) had to release some money from a private pension the pension provider told him verbally and again in writing, that if he was claiming state benefits then it was dh's duty to report the pension drawdown to the DWP. Has the solicitor dealing with the probate not advised the same to the beneficiaries of the inheritance? It's always advisable to be upfront and honest with the DWP, it's just not worth the risk of getting into trouble further down the line. I'm on universal credit and just a couple of weeks ago, completely out of the blue they contacted me to do a very thorough review, they wanted bank statements etc. That in itself was stressful enough and I had nothing to hide!

Thank you too, for agreeing with what I already said. Validation is good.

I don't think worrying that a relative might get prosecuted is "mean minded", but it's a perspective I'd not considered before, and I thank you for it.

Thank you so much for this. In the situation I am involved with, no beneficiary was currently living in the house before they inherited part of it, though I can well understand how if someone had been that it may result in a disregard for the others involved.

In this case, beneficiaries could have easily sold the property and split the money, but they chose not to. I don't even know if any of them intend to live there, all I know is the property has been kept between them.

Thank you for this. It isn't my responsibility at all, and thus I won't be making a job of it, but the beneficiaries do know what the situation is re: the DWP as they have already made inquiries & have been told so. I just hope they don't compromise themselves.

DH had an inheritance from abroad and I was sent a letter from HMRC because it went into a joint account.