If someone on disablement pension (or any other kind) dies owning property, does the law state that all benefit payments must be clawed back? A friend who sold the house of a relative after she’d died had to pay a huge sum to the DWP.
The house you live in is not taken into consideration by the DWP when calculating eligibility for the few benefits, such as pension credit, which are means-test based. Unless your friend’s relative was claiming a benefit to which she was not entitled I would guess that she was in residential care prior to her death. In this case the local authority may have put a “charge” on her house in order to recoup the care home fees from her estate. The “huge sum” will have gone to the local authority, not the DSS.