Direct Payments Factsheet
B10: When someone who receives a direct payment dies – what to do next?
When a recipient of a direct payment passes away it is important to notify the council promptly so that we can end the existing arrangements.
You will be asked to provide the name of the executor or the person handling the deceased’s affairs. The executor, named in the will, is responsible for managing the deceased’s estate. If a solicitor is involved, please provide their name and contact details, such as address and telephone number, so we know where to send correspondence.
We will inform social care and the direct payments support service to close the direct payment account and payments will cease. They will write to the executor or solicitor to explain the process and offer support regarding the direct payment account and legal requirements. The direct payment support service will also assist to ensure all employer responsibilities are properly completed.
The direct payment account
The funds in the direct payment account are designated to buying services for someone who required social care support. These funds are not part of the deceased person’s estate and cannot be used for other purposes, such as funeral expenses. They must only be used to fulfil direct payment contractual obligations.
Once all contractual and legally required payments have been made any remaining money must be returned to the council. The direct payment support service will provide guidance on how to return these funds.
If you are the executor of the will
You need to determine if there are any outstanding contractual obligations or payments from the direct payment account. For instance, if the deceased employed a personal assistant, they must be compensated for the work already completed, as well as any redundancy or annual leave pay owed. The direct payment support service can help you with this process. The redundancy payment due to each employee under the statutory redundancy payment scheme depends on their age and length of service.
If you are not the executor of the will
It’s crucial to explain the direct payments scheme to the executor, as they might not be familiar with how it works. Make sure they understand that the bank account is specifically for direct payments. After all contractual and legally required payments have been made any remaining funds must be returned to the council.
If there is no will
When someone dies intestate (without a will), a close relative, such as a spouse, child, or parent, can apply for the legal right to manage the deceased’s estate. To do this, they apply to the Probate Registry for a 'Grant of letters of administration'. This grant gives them the authority to administer the estate and handle the deceased’s affairs.
Access to the direct payment account
It is advisable to obtain a solicitor to assist you through this process. The grant serves as proof to banks, building societies and other organisations that you have the authority to access and distribute the funds held in the deceased's name. With this authority, you will be able to access the direct payment bank account and make any necessary payments. After all payments have been made, any remaining funds must be returned to the council.
How can we meet the contractual responsibilities if we cannot access the money?
If the direct payment bank account has been frozen or is otherwise inaccessible, the council may, in certain circumstances, cover some outstanding payments, such as salaries on the individual’s behalf. These funds will be recovered once the account is reactivated and closed. To ensure you meet all legal requirements, please contact the direct payment support service for further assistance and information.
