These are the Savings Rules for Benefits for over 60s:-
Items that are disregarded capital include:
- your home
- the value of any property occupied by some who is a 'close relative' if they have reached pension credit qualifying age or are 'incapacitated'
- the value of a property for up to 26 weeks if you have acquired it to live there, you are trying to sell it, you are carrying out essential repairs or alterations in order to live there, or you are taking legal advice so that you can live there
- the value of a former home for up to 26 weeks if you have left because of a relationship breakdown (or indefinitely if your former partner lives there and is a lone parent)
- sale proceeds of your home for up to six months if you intend to buy another home
- money from insurance claims for up to six months if used to replace or repair
- money such as a loan or grant to pay for essential repairs or improvements
Other disregards include:
- your personal possessions such as jewellery, furniture or a car
- your business assets
- any life insurance policy which has not been cashed in
- the value of a pre-paid funeral plan
- any charge for currency conversion if your capital is not held in sterling
- any Social Fund grant payments
- arrears of certain state benefits
- a lump-sum payment received because you deferred drawing your state pension for 52 weeks or more
- certain compensation payments
If you deprive yourself of capital in order to increase the amount of benefit you get you can be treated as if you still had that capital, this is called ‘notional capital’. This might occur if you give money away to members of your family or buy expensive items in order to reduce your capital.
You will not be considered to have deprived yourself of capital if you have paid off debts or used money for ‘reasonable’ spending on goods and services.
If you are refused benefit because of notional capital you should seek advice and consider appealing against the decision.
https://www.entitledto.co.uk/help/savings-over-60
By the way, I think the executor was wrong to rely on the banks to forward the statements to the DWP. They should have been sent to him to check and then forward on to the DWP.