Tuesday, 17 July 2012

Questions (115)

Michael McGrath


119 Deputy Michael McGrath asked the Minister for Finance if he is satisfied that the process for form of nomination in respect of credit union account has sufficient safeguards to ensure that the best interests of the account holder are protected and they are not subject to undue influence; and if he will make a statement on the matter. [35161/12]

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Written answers (Question to Minister for Finance)

Section 21 of the Credit Union Act 1997 provides that a member of a credit union who is of or over the age of sixteen may, by a signed written statement, nominate a person or persons to become entitled at the member's death to the whole, or such part or parts as may be specified in the nomination, of any property in the credit union (whether in savings, loans, insurances or otherwise) which the member may have at the time of his or her death. There are a number of safeguards in place to prevent abuse of this provision:

The nominee cannot be an officer of the credit union unless that officer is a member the nominator's family.

The amount that has been nominated is only valid up to a limit of €23,000.

A nomination by a member may be revoked or varied by a subsequent nomination by him.

Marriage of the nominator operates as a revocation of any nomination made by that person, as does the death of the nominee before the nominator.

The Commission on Credit Unions undertook a review of the Credit Union Act 1997 as part of its terms of reference; however, the Commission's Final Report made no recommendations for change in respect of Section 21.