Credit union nomination

[mb2024]

Does the balance after credit union nomination need to go to probate if it’s 8000?

 

[Slim]

I'm not sure what you mean! After nomination there should be a zero balance. If the balance exceeded €27k, nomination is not actioned and all goes to probate.

 

[Des Pondent]

If the balance exceeded €27k, nomination is not actioned and all goes to probate.

My understanding was, if I had €31,000 in my credit union and I died, my nominee would get €23,000 and the €8,000 balance would form part of my estate.

''You may nominate a person(s) of choice to receive your property presently up to a maximum value of €23,000 in Republic of Ireland or £20,000 in Northern Ireland. Any amount in excess of €23,000/£20,000 will form part of your estate.''

https://www.creditunion.ie/what-we-offer/savings/nomination-of-your-account/

 

[WizardDr]

The nomination amount is up to €27,000 which changed in February 2024. This is not affected if the balance is over that amount. It would ho to probate for the remainder. This is not a CAT exemption.

 

[Des Pondent]

The nomination amount is up to €27,000 which changed in February 2024. This is not affected if the balance is over that amount. It would ho to probate for the remainder.

Thanks for clarifying.
A deceased person had €35k, that is above the threshold for a small estate so probate would usually be needed.
If there are no other assets and the nominee gets €27k, the remaining €8k is well below the small estate threshold, is probate still needed ?

 

[mb2024]

Thanks for clarifying.
A deceased person had €35k, that is above the threshold for a small estate so probate would usually be needed.
If there are no other assets and the nominee gets €27k, the remaining €8k is well below the small estate threshold, is probate still needed ?

Thanks. Yes just wondering is the 27000 counted for probate too?? If the remaining balance is around 8000? Nomination amount is not part if estate I have read.. total amount is 35000

 

[Slim]

My understanding was, if I had €31,000 in my credit union and I died, my nominee would get €23,000 and the €8,000 balance would form part of my estate.

''You may nominate a person(s) of choice to receive your property presently up to a maximum value of €23,000 in Republic of Ireland or £20,000 in Northern Ireland. Any amount in excess of €23,000/£20,000 will form part of your estate.''

https://www.creditunion.ie/what-we-offer/savings/nomination-of-your-account/

My apologies, too long out of the game. S21 of the Credit Union Act.

 

[WizardDr]

Thanks for clarifying.
A deceased person had €35k, that is above the threshold for a small estate so probate would usually be needed.
If there are no other assets and the nominee gets €27k, the remaining €8k is well below the small estate threshold, is probate still needed ?

Just to help clarify: The maximum amount that can be nominated (to one or more) is €27,000. S21 CU Acts 1997-2023. This changed in February 2024.

Also there is a new limit of €18,000 (S23 CU Acts 1997 - 2023)) which was increased from €15,000 in February 2024 as regards 'small balances'. As these Sections are separate it would seem that because of nomination, So the remaining balance is below this (€35k-€27k) then CU may pay out €8k.

Note: These are NOT Capital Acquisition Tax exemptions, and if there is a larger estate whoever is filing the CAT return will have to reveal what did not go into probate.

 

[Polly 123]

WizardDr can I ask does the nomination amount not have to go through probate if its 27k? Thanks

 

[WizardDr]

No the nomination amount does not form part of probate. Thst said if there were other assets say house then there would be probate but the nomination amount is excluded. However whoever is doing the CAT return would include the amount as part of the distribution of the estate. For the avoidance of doubt the nomination amount is not an exemption from CAT which is why Revenue want to see it in return.

 

[Polly 123]

Thank you WizardDr, that is a great help.