DWP and money from parents death.

[xsunnysuex]

Does anyone have any experience in what happens if you're on income related benefits. And you get payments into your bank account from life insurance and closed bank accounts?
My mum passed away last week. Her bank account balance has been transferred to me. Also expected is life insurance for the funeral.
This amount will probably be around £10,000 in total.
I'm on benefits that I can't go over £6000 for my claim not to be affected.
This isn't my money. The funeral will take a large chunk of it. And what is left has to be split between me, and my brother and sister.
I'm not sure of the best way to deal with it.

 

[lazythursday]

Should it have been transferred to you so quickly? Surely that shouldn't happen till probate is granted? I didn't get hold of any of my dad's money for months and months, though I think the funeral got paid for via the executor.

 

[xsunnysuex]

Should it have been transferred to you so quickly? Surely that shouldn't happen till probate is granted? I didn't get hold of any of my dad's money for months and months, though I think the funeral got paid for via the executor.

I think you only need probate if it's over a certain amount.
This was made up of mums bank balance. And two life insurances. It can be dealt with quickly.

 

[WouldBe]

I think you only need probate if it's over a certain amount.
This was made up of mums bank balance. And two life insurances. It can be dealt with quickly.

Might be best to contact DWP and explain it to them.

Worst that can happen is they reduce your payments until the bank balance drops back below 6k.

 

[xsunnysuex]

I did just find this.

 

[Puddy_Tat]

I think you only need probate if it's over a certain amount.

think so - we didn't need probate for my dad - he hadn't made a will so everything (his half share of house and money / insurance payments) went to mum-tat. we did have to do 'letters of administration' with a solicitor, but that appears to be because there wasn't a will.

this page (from CAB) says

You usually need probate or letters of administration to deal with an estate if it includes property such as a flat or a house. Otherwise, you may not need probate or letters of administration if:

• the estate is just made up of cash (that is, bank notes and coins) and personal possessions such as a car, furniture, and jewellery
• all the property in the estate is owned as beneficial joint tenants This property automatically becomes wholly owned by the other owner
• you had a joint bank account
• the amount of money is small
• you discover that the estate is insolvent, that is, there is not enough money in the estate to pay all the debts, taxes and expenses
• there are certain life insurance policies and pension benefits in the estate.

i'm not sure how you would go about finding out whether probate is needed - this isn't entirely clear about what a 'small' amount of money means.

this page (co-op legal services) suggests £ 30K may be the threshold for needing probate. may be worth ferreting further on their website.

i'm not a fan of the idea of handing money to lawyers, but there are times when it can be worth a small lawyers fee to avoid getting in to a deeper tangle later.