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Whose money is it ??

Altered Chaos
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Operations & Advice Manager - Citizens Advice Taunton

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Joined: 28 June 2010

Hi all,
Unusual question posed by a client and any ideas/thoughts welcome.

Client’s mother-in-law (A) passed away in 2005, at this time she sorted out all paperwork for her and her husband as he has ill health (DLA MRC/HRM). When A passed away the client notified DWP, banks etc of her death. In 2006 father-in-law (B) was assisted by family friend to claim PC(G).
The family are only now sorting out probate and as a result my client discovered that money had continued to be paid into A’s building society accout by the DWP until 2010. The client has established that the money was B’s IB and the balance of the account now stands at £24k.
My initial concern was ‘was the IB declared when claim to PC(G) was made?’ but based on the amount of OC(G) received by B it appears it was so no ongoing overpayment of PC(G) on the basis of failure to disclose however….

What about the £24k that was paid (and has accrued beyond the lower capital limit) to B via A’s account?
He cannot access/withdraw the money as the account was in A’s sole name so will not realise the cash until probate sorted, and B is not the sole beneficiary of the will.
Is there a way for B to access the money before probate?
Has the money formed a trust? (suggested by one of my colleagues)

I am struggling to advise of all the options given that i can’t answer some of the above and having trawled through capital in CPAG I am more confused than ever. HELP!

Chaos

Altered Chaos
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Operations & Advice Manager - Citizens Advice Taunton

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No, my client and his wife have merely been assisting the father-in-law (B) - who did not realise the money was accruing - to ensure he does not fall foul of benefit rules.

Altered Chaos
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Operations & Advice Manager - Citizens Advice Taunton

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Total Posts: 427

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Thanks Jan,

IB payments ceased in 2010 when B got his SRP. I shall keep my fingers crossed that Ariadne has some words of wisdom.

Chaos

[ Edited: 27 Apr 2011 at 05:15 pm by Altered Chaos ]
Altered Chaos
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Operations & Advice Manager - Citizens Advice Taunton

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Total Posts: 427

Joined: 28 June 2010

Come on guys, forget the royal wedding and give me some ideas.