bank account

[dylan1959]

when someone dies is there anyway that governing bodies eg DWP can obtain information from their personal bank account eg bank balance tia

[woofgang]

I think they can if they suspect fraud. generally speaking if you have behaved fraudulently towards the government (In UK) then they can unpick your whole life.

[ummmm]

Is it true or a myth that if you deposit £5,000 or over then HMRC are informed?

[woofgang]

I think that there are procedures if you deposit large amounts of cash...if its cheques or funds transfers then the trail is easy to see.

[ummmm]

Just wondered.

I don't think banks are allowed to accept large amounts of cash.

[woofgang]

I think they can if you can show where it came from..we sold a car for cash (about 9,000 pounds) a few years ago and that was no problem to pay in because we had the sales document. We've also set up a bank account for an elderly relative who had a mega stash of it around her house and again that was no problem although that was quite some time ago. Its a fairly common occurence still for old ladies to turn up at hospital to be admitted, usually as an emergency with thir suitcases stuffed with notes. The hospital staff count it with witnesses, give a receipt and pay it into their account then when the person leaves or before if they want it, they generate a cheque.
I know this sounds all a bit iffy but its hard to see what else to do...leave the money in hospital? pass it to a relative? get it taken back to an empty house? all very risky

[dzug]

<Is it true or a myth that if you deposit £5,000 or over then HMRC are informed?>

True - though the amount may not be the same in every bank. or indeed every account

And it's the money laundering arm of HMRC that gets informed. not the taxman.

[sara3]

DWP can recover overpayments from the deceased person's estate.

[DocHH]

Dylan1959,
I think you will find that £5000.00 is the level at which it is neccessary for an Executor of an Estate has to apply for Probate, or Letters of Administration, if the Deceased was intestate. (Without Probate or Letters of Administration any residual Estate over £5000.00 cannot be distributed). Applications are copied to the "DHSS". The content of the Application is then compared to what the Deceased may have claimed to have when applying for "benefits". If the 2 are disparate, then the Executor will receive a letter from a Department called "Recovery From Estate" with a request to explain the difference. Overpayments are a liability of the Estate, and I think need to be repaid before the residue of the Estate can be distributed to the Beneficiaries, or the Executor may be personally liable. Additionally when an Executor informs DWP of the demise of the Deceased they will automatically request repayment of overpayment of pension, they will also pay to the Estate any underpayment.