Dáil Éireann Debate, Thursday - 18 April 2024
156. Deputy Robert Troy asked the Minister for Finance the reason a spouse can only access €27,000 of a deceased spouse’s credit union savings and any remainder must go to probate; his views on whether this rule is fair when the spouse is clearly the next-of-kin and automatic beneficiary; and if he plans to review such rules in the short term. [17177/24]
View answerI thank the Deputy for his question.
By way of background, "nomination" is a legally binding agreement under which a credit union member can nominate a third party to be the recipient of the member’s money after their death, up to a limit of €27,000. The effects of nomination are that any amounts up to €27,000 will pass outside the terms of any will. Nomination is a unique provision available only for credit union members.
Any amount in excess of €27,000 are deemed assets of the deceased's estate and credit unions are obliged to administer any such funds in accordance with the rules of probate (if there is a will), or the law of succession (if there is no will). The probate office of the High Court deals with all matters relating to rules of probate. Its fairness, and any potential changes required are the responsibility of the Minister for Justice.
The recent Credit Union Amendment Act (2023) included an amendment to Section 21, which permits me, as Minister for Finance to approve increases in the nomination amount. On the 8th February, I signed a statutory instrument approving an increase from €23,000 to €27,000. Significant consultation was completed by my officials and Ministers of State with the credit union representative bodies, on nominations and all other provisions in the Amendment Act. The increase in the nomination amount to €27,000 was supported by all representative bodies and recommended by the Credit Union Advisory Committee.
In my view, it is in an appropriate level at this quantum. My officials will be completing post legislative scrutiny and the Credit Union Advisory Committee will be reporting back to me on the implementation progress of the new Amendment Act. If there is a shared view/recommendation, at that stage to increase the nomination amount, I will of course consider it.
