What is a Form of Nomination?
When a member who is over 16 years of age opens a Core Credit Union account, he/she is entitled to nominate a person (or persons) to receive his/her property in the Credit Union on his/her death.
Property includes shares, deposits and insurance proceeds. This is of benefit if the member dies without leaving a will as the property left in the Credit Union will not have to pass through the sometimes timely intestacy process.
Click here to download a Nomination Form.
Summary of nomination rules are:
- The maximum amount that can pass under a nomination is €23,000. Any amount in excess of this balance becomes part of the deceased member’s estate.
- If a member elects not to complete a nomination, the proceeds of his account become part of his estate on his death, and are dealt with under his will or under the rules of intestacy if he makes no will.
- A member may revoke or vary his original nomination at any time by making a new nomination. However, a nomination is not revocable or variable by the terms of the nominator’s will.
- A nomination is automatically revoked when the death of the nominee occurs before the death of the nominator. In this case, the deceased’s property in the Credit Union passes to his estate.
- Small Payments Provision: Where no valid nomination exists and the amount in the deceased member’s account is under €15,000, the board of directors of the Credit Union may distribute the deceased member’s property in the Credit Union to such persons as the board deems to be entitled to it.
- A nomination made at the time a member opens his account will be automatically revoked by a subsequent marriage. A new Nomination Form has to be completed.
- The nominated property does not form part of a deceased person’s estate. Therefore, a payment made under a nomination does not affect a nominee’s entitlements under a will, i.e. he is not deemed to have received property due to him under the will by virtue of his having benefited under the nomination.
- An officer of the Credit Union cannot be a nominee, unless the nominator is a member of his family.
- A person under 16 years of age cannot make a valid nomination. If such a member dies, the proceeds of their account become part of their estate, or are dealt with under the small payments provision mentioned above.
- If a nominee is under 16 years of age, payment can be made to either parent or to a guardian, provided the parent or guardian undertakes to hold the property in trust for the nominee.
- Joint Accounts: By virtue of the right of survivorship on the death of one of the parties to a joint account, the account becomes the property of the remaining party or parties to the account.