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Comhar Creidmheasa Ghaoth Dobhair is reminding all members of the importance of naming a nominee on their Credit Union account and reviewing those details regularly, especially considering recent changes to Life Savings Insurance and inheritance limits.
Speaking on behalf of the Credit Union, the Insurance Officer Mairead Uí Fhioruisce, said: “We are here to support our members through every stage of life — from everyday banking to times of loss and bereavement. Having a nominee in place is a simple but crucial step that helps ensure funds are passed on quickly and without unnecessary delays.”
A nominee is the person a member designates to receive the funds in their account in the event of their death. This person can be a family member, friend, or someone the member trusts. Naming a nominee allows the Credit Union to release funds up to the current statutory maximum of €27,000 without the need for probate, in accordance with the Credit Union Act 1997. Please note that the increases to the nomination limit applies to all deaths occurring from 22 February 2024.
This process not only ensures the member’s wishes are respected, but it also provides significant support and peace of mind to loved ones during a difficult time. Members are encouraged to review and update their nominee at any time by contacting Credit Union staff.
Key Updates (as of February 2024):
• The maximum amount that can be nominated has increased to €27,000.
• The small payments rule has increased from €15,000 to €18,000 in cases where no nomination exists.
• Any funds above these limits form part of the deceased’s estate and require a grant of probate or letters of administration before release.
The Credit Union also offers Life Savings Insurance as a free benefit to eligible members. This insurance provides a lump sum payment to the nominee or next of kin when a member dies, based on the member’s age and savings history.
It’s important to note that although nominated funds bypass the probate process, they are still considered a taxable inheritance under Irish law and may be subject to Capital Acquisitions Tax (CAT). Tax-free thresholds apply based on the beneficiary’s relationship to the deceased, and any amount above the threshold is taxed at 33%. Members and their nominees are advised to consult with Revenue if they have concerns about tax obligations.
Changes to Life Savings Insurance – From February 2024
If there is a nominee on the account and the total (including the insurance) goes over €27,000, the extra amount must go through the estate, and a grant of probate or letters of administration will be needed.
Also, if the account originally had less than €18,000, but the insurance brings it above that, it may no longer qualify for payment under the small payments rule, and a grant will also be required.
“At Comhar Creidmheasa Ghaoth Dobhair, we are proud to serve our community with care, trust, and integrity. We strongly encourage all members to talk to our team about their nomination and insurance today.”
For further information on how to update your nominee, please contact Comhar Creidmheasa Ghaoth Dobhair at 074 9531279 or email info@gaothdobhaircu.ie. www.gaothdobhaircu.ie
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