Alice, an elderly lady, had lived in the care of nuns in a nursing home for the latter years of her life and was in receipt of a means tested disability allowance. Alice had many health concerns and had never worked during her lifetime. Alice had made a will. Alice’s sole asset was one bank account holding funds of €120,000.

In her will Alice dictated that the funds held in this bank account were to be distributed among several charities.

When applying for a grant of probate a document called the SA2 must be lodged with Reveune three months before the estate can be administered. The SA2 sets out all the deceased persons assets and liabilities at the date of their death.

The Department of Social and Family Affairs noted the significant sum of saving Alice had acquired from saving her social welfare entitlements when the SA2 was submitted to Revenue.

The Department noted that when Alice first applied for the disability allowance, she was entitled to it but as she saved the majority of the payment these savings pushed her above the level of wealth allowed to qualify for this payment.

The claim made by the Department of Social and Family Affairs was successful. A total of €80,000 was repaid from Alice’s estate to the Department.

Ironically, if Alice had spent the money as she was receiving or made charitable donations with it during her lifetime this situation would never have arisen.

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Please note for privacy and GDPR reasons names and circumstances have been changed to protect the identity of the individuals involved.