Vol. 184 No. 6
asked the Minister for Posts and Telegraphs what inquiries are made by his Department before paying out to the relative of a deceased person without production of letters of administration funds held in Post Office Savings Bank accounts in the name of a deceased intestate.
39.
asked the Minister for Posts and Telegraphs if he is aware that legitimate claimants under the law of intestate succession are protected against fraud or defalcation by the appointment under the court of two approved sureties or an insurance bond; and that the practice of his Department of paying out Post Office Savings Bank accounts of several hundred pounds defeats the purpose of the law by removing the necessary safeguards so imposed; and, if so, what action he proposes to take in the matter.
40.
asked the Minister for Posts and Telegraphs if he is aware that the payment by his Department of substantial sums of money held in the names of deceased persons in Post Office Savings Bank accounts without requiring production of letters of administration where such persons died intenstate has resulted in persons lawfully entitled to claim against the estate being defrauded; if sums up to £500 have been paid out of such accounts without regard for the legal rights of next-of-kin entitled to share by virtue of the law of intestate succession; and if he will direct that this practice should immediately stop.
With your permission, a Cheann Chomhairle, I propose to take questions Nos. 38, 39 and 40 together.
Where a depositor in the Post Office Savings Bank dies intestate and the balance in his account exceeds £100, the statutory regulations require the production of letters of administration before payment is made. This is not necessary in cases of nominations, joint or trust accounts or where is certain circumstances, a claim is made by the husband of a deceased depositor.
Where the balance in a sole account does not exceed £100 and the depositor has not executed a nomination, inquiries are made as to whether letters of administration have been extracted. Where extracted, the Letters of Administration are inspected before payment is made. If it is intended to obtain Letters of Administration, a statement of the balance in the account is issued for inclusion in the Schedule of Assets for estate duty and payment is made to the administrator when the grant issues.
If it is not intended to take out administration, a registrar's certificate of death is required, and in cases of sole accounts inquiries are made as to whether the depositor left next-of-kin; particulars of the degree of relationship together with their names, addresses and ages are required. Payment is made to the person or persons entitled according to the status of distribution or at common law, provided no claim has been received for funeral expenses, or in respect of public assistance. Reimbursement of the amount of the funeral expenses is made to the person who paid them, if required, or his consent is obtained before distributing the balance in the account.
I am not aware that the practice in the Savings Bank has deprived anyone lawfully entitled to benefit from the account of a deceased depositor, or that the purpose of the law governing estate succession has in any way been defeated by such practice. I am satisfied that the balances in the accounts of deceased depositors are disposed of in accordance with the statutory regulations made under the Post Office Savings Bank Acts.
It is difficult to deal with this complicated matter through Parliamentary question and answer. If the Deputy has a complaint arising out of a specific case, I shall be glad to have the matter fully investigated.
Would the Minister not agree that this is a matter of public importance? Would he not give an unequivocal undertaking that amounts in excess of £100 will not be paid out to claimants from Post Office Savings Bank accounts where the depositor has died intestate?
The only undertaking I can give is that the Acts will be administrated in accordance with the intentions of the Oireachtas.
Does the Minister not realise that it is very grave if a person entitled to a share of the assets of a depositor who has died intestate does not get it because the Minister's Department paid out money to somebody without surety or bond as to his behaviour? Does the Minister not realise that banks adopt certain measures with regard to such money and have regulations which apparently are not good enough for the Post Office Savings Bank? I can give the Minister examples of cases where amounts even in excess of £300 were paid out. A person who said he represented an intestate deceased depositor was able to obtain money.
What about suing the Department?
I have answered the question put to me. I have no information of any case in which moneys were unlawfully disbursed by the Post Office Savings Bank. If I can get information on any specific case or on a number of cases, I shall have them specially and fully investigated.
