The Department for Work and Pensions (DWP) contact personal representatives of an estate on some occasions where a deceased was in receipt of means tested benefits during their lifetime. Means-tested benefits can include universal credit and pension credit. If they were not entitled to the benefit, the DWP will want to be paid back and therefore it will represent a liability against the estate.

When will the DWP make contact?

The DWP could contact a personal representative regarding an investigation at any point during the administration of an estate.  For example:

• The personal representative notifies the DWP of the death
• Through the Tell Us Once service
• Following the issue of a Grant of Probate/Grant of Letters of Administration (notification by the Probate Registry); or
• When statutory notices are placed

What information to the DWP require and why?

If you receive a letter from the DWP stating that they are requesting information in relation to the assets and liabilities of the estate, the personal representative must provide them with this information. Under section 126 of The Social Security Administration Act 1992, the DWP are able to ask for this information. It is important that you provide them with accurate information as they will then compare this information with what was declared by the deceased during their lifetime.

The DWP may also request information in relation to the deceased’s care or any property that they own, not only information in relation to any bank accounts. It is important that this information is submitted to them promptly and accurately.

As stated above, the DWP require this information in order to ascertain if a deceased was entitled to the means-tested benefit that they were receiving.

At the end of the letter from DWP, it sets out clearly that the personal representative must treat the letter as a claim against the estate. If a personal representative has already distributed the estate, and a refund is due to the DWP, they could be held personally responsible for the amount owed to them. It is therefore strongly advised that personal representatives do not distribute the estate until the DWP has concluded their investigation.

The purpose of the enquiry is to reclaim means tested benefit claimed in error. The DWP do not apportion blame for errors that occurred during the lifetime of the deceased but they do expect us to assist them with their enquiry in full to allow any incorrectly claimed benefit to be returned.

What happens at the end of the investigation?

At the end of an investigation, the personal representative will receive communication from the DWP confirming either of the following:

• Overpayments have occurred and a refund is due to the DWP
• A refund is due to the estate as the deceased should have been in receipt of further benefits
• Nothing is due to the DWP or to the estate.

If the DWP confirm that overpayments have been made to the deceased, this will represent a liability against the estate and therefore it is important that the personal representatives process the payment due to the DWP. If a refund is due to the estate, the DWP will be in contact to arrange payment to the personal representatives. Once the refund has been made, the personal representative can continue with the administration of the estate and distribute the estate to the entitled beneficiaries.

How long does a DWP claim take to complete?

It is difficult to say how long a DWP investigation can take to complete. However, it is clear that these investigations can take a number of months to conclude.

How we can help

If you require any assistance with the administration of an estate or an application for a Grant of Representation, please contact our Private Client Team.