State pension, means assessment

cruizer101

Looking for some help regarding a strange situation.

A person I know passed away earlier in the year and when it came to getting her assets released the Social Welfare said she owed 60000 due to the fact she had been mis-receiving state benefits.

Now she was on a non contributory state pension and the reason they are saying she wasn’t due it was due to her having assets which gave her a means greater than the amount she was receiving.

However the assets that she had were from the sale of her house with which she fully intended buying a new house, but temporarily moved into alternative accommodation with one of her sons. Then due to her getting sick buying a house was put of indefinitely, until she passed away.

Now I’ve looked at the Citizens Information website http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/means_test_for_social_welfare_payments/how_to_assess_your_means_from_capital_for_social_welfare_payments.html

From looking at this, it would appear that she has slipped into a space where the money is owed although I don’t think she really should.
Conditions which would have allowed her to keep the money are as follows:
• Buy or rent more suitable alternative accommodation
• Move into a private nursing home which is registered under the Health (Nursing Homes) Act 1990
• Move in with a person who getting a carer's payment to care for you
• Move to sheltered or special housing in the voluntary, co-operative, statutory or private sectors
Usually the first €190,500 of the sale proceeds is not taken into account. However, if you use the proceeds of the sale to buy more suitable accommodation, the balance of the proceeds after buying the new accommodation is exempt up to a limit of €190,500.

First condition, it was fully her intention to buy a new property but due to circumstances she didn’t, with regards to rent although she didn’t officially pay any rent to the son she lived with she did contribute on a regular basis towards bills etc

Third condition, the son she moved in with couldn’t actually receive a carers allowance as he is in receipt of a disability allowance himself.

Also looking at the last line confuses me a bit, it seems to say that had she bought somewhere a balance of up to 190500 after her buying would not be assessed for means but because she didn’t buy anywhere it is all assessed for means. So even if she bought some crappy little cheap place, the rest would not be assessed it just seems strange to me.

The other thing that strikes me, when she was originally means assessed it would have been fully correct, it seems a bit strange that they only raised this issue now, where as had it been raised when she sold the house it would have been sorted. I realize at end of day it is her responsibility to declare her assets but to me does seem there is negligence by someone in not informing her of this, be it dept of social welfare, her estate agent or solicitor at the time.

So looking for advice, just to say this isn’t affecting me directly in anyway just looking for advice for people I know.
This is from citizens info website is there any other place I could check for the actual relevant legislation, or is this it.
I think it may be the case the money is owed but really it does seem a bit unfair in this case. Thanks

Balagan

Any person who is receiving a social assistance payment (i.e. a means tested payment) is obliged to notify the Department of any increases in his/her means. Where, subsequent to the death of such a person, it comes to light that not all of the deceased person’s means were reported or disclosed and it is found that an overpayment has occurred, the Department can recover the amount overpaid from the estate of the deceased. These cases are called Estate Cases.
http://www.welfare.ie/en/Pages/Overpayment-Recovery---Guidelines-on-the-Recovery-of-Debt-by.aspx

Cushie Butterfield

All the means tested social welfare payments clearly state on the application form that the applicant will inform DSP of any change in means or circumstances, as do the award letters.

Have a look at the application for for state pension, on page 3:

''Declaration: I declare that all the information I have given on this form is accurate.
I will tell the Department when my means or circumstances change.

Signed:
Date: ''

http://www.welfare.ie/en/pdf/spnc1.pdf

I realise that it's just a few words on a form, especially if someone is elderly or unwell, & those particular circumstances are extremely unfortunate, but when push comes to shove those few words on the form are very important. A very expensive lesson for her family to learn unfortunately. I am surprised that her solicitor didn't advise her to declare the sale of her house at the time.