Probate and Means Tested benefits

I have a client who’s parent away leaving her a large sum of money - she’s due a sizeable inheritance, though the money is still in probate but she’s the executor of the will.

I am correct in thinking that until the money is out of probate and hers that she continues to be entitled to means tested benefits and doesn’t need to disclose. Struggling to find confirmation of this.

Thanks

The executor of a will is responsible for gathering together all of the assets that are part of the deceased person’s estate, settling any debts (which in turn means advertising for any creditors through different channels), and only once all that has been done and estate accounts are drafted, can the money in the estate be shared with the beneficiaries of the will.

So the fact that your client is both a beneficiary and the executor doesn’t change the position of the former - the money in the estate should not be regarded as theirs until such time as the probate matter has been finally settled.

One very good practical way to avoid problems, both in terms of benefit claims and in terms of dealing with the estate is to open a separate bank account to keep the proceeds of the estate within. That way there can be no suggestions of any impropriety as far as I can see.

The issue of whether to disclose is, I think, slightly more tricky - yes, in principle there is no need to disclose for the reasons set out above but we know DWP carry out data matching exercises for bank accounts and if it did come to light that a bank account in your client’s name contained a large amount of money, they will probably automatically assume the worst. Which would lean towards disclosing what has happened and what they are doing to deal with the estate but of course, we know from experience that DWP often make strange decisions anyway in situations where they shouldn’t.

I would agree. Further details in link. If the deceased was wealthy enough to have a firm of solicitors appointed as executors, they would soon tell a DWP investigator where to go ( in a precise legal way).
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1073425/admh1.pdf