What to do when someone you know in receipt of Direct Payments dies
Ref: 007/10/07
When someone on Direct Payments dies, the care management team needs to be informed so that they can stop the services that are in place. If you do not know who the deceased’s care manager is then you can contact the Adult and Community Services team on 020 8891 7971 and they will transfer you to the appropriate team.
The care manager will ask you for the name of the executor. (The executor will be named in the deceased’s will as the person who will deal with their affairs after their death). They will also ask if there is a solicitor. If there is a solicitor involved please give their name and contact details, e.g. address and telephone number, to the care manager. They need this information so that they know to whom they need to send correspondence.
The care management team will close the Direct Payment and payments will cease. The finance team will write to the executor and the solicitor to explain what needs to be done regarding the Direct Payment account.
The Direct Payment account
If you are the executor of the will you will need to find out if there are any contractual obligations or payments that need to be made from the dedicated Direct Payment account. For example, if the deceased had been employing a Personal Assistant, the PA will need to be paid for the work that they have already completed and any redundancy pay that is due to them. Your Independent Living Adviser can help you to determine the amount of redundancy pay that needs to be paid. (The redundancy payment due to each employee under the statutory redundancy payment scheme depends on the individual’s age and length of service).
If you are not the executor of the will
It is very important that you explain the Direct Payments Scheme to the executor. They may not know how Direct Payments work. They need to be made aware that the bank account is a dedicated Direct Payment account and that the remaining money in it, after all contractual and legally required sums have been paid out, needs to be returned to the council. When you or the executor is administering the estate this money should be treated as money that Richmond Council has a right to be paid.
If there is no will
The individual is said to have died 'intestate'. Usually a close relative like a spouse, child or parent will be able to apply for the legal right to sort out the estate of the person who has died. In order to be able to administer someone's estate you (or the friend or relative) will need to apply to the Probate Registry for a 'Grant of Letters of Administration'.
Access to the Direct Payment Account
It is advisable that you obtain a solicitor to help you through the process. On receipt of the grant, you or the individual will become the 'administrator' of the estate. The grant provides proof to banks, building societies and other organisations that you have authority to access and distribute funds that were held in the deceased's name. You will then be able to access the Direct Payment bank account and will be able to make any payments that need to be made. Once all payments have been made, you will need to return the remaining money to the council.
In the case where the account has been frozen or there is no access to the account, the council will, in certain circumstances, pay out any outstanding pay e.g. salaries on the individual’s behalf. This money will then be recovered once the account has been reactivated and closed. Please contact the finance team for more information.
Useful contacts
Richmond Adult and Community Services
Telephone: 020 8891 7971
Richmond DP Finance Team
Telephone: 020 8891 7237
RUILS (Richmond Users Independent Living Scheme)
Telephone: 020 8831 6083
Useful websites
What to do after a death - DirectGov website
