One Huge Advantage of Having a Credit Union Account.....

Benefits and Limitations of Credit Union Nomination Facilities

The nomination facility offered by credit unions allows members over 16 years old to designate a beneficiary to receive their credit union assets upon their death. This can be particularly beneficial if the member dies without a will, as it bypasses the often lengthy probate process. The nominated amount is distributed directly to the nominee and does not form part of the deceased's estate. This simplifies estate administration and ensures a quicker transfer of funds.

Benefits:

• Simplified Estate Administration: The nominated funds are not included in the deceased's estate, simplifying the probate process.
• Expedient Transfer of Assets: Bypassing probate allows for a faster distribution of funds to the nominee.
• Flexibility and Control: Members can choose any individual as their nominee and modify the nomination as needed. This allows members to maintain control over the distribution of their credit union assets.

Limitations:

• Monetary Limit: The nomination facility has a limit of €27,000. Any amount exceeding this limit becomes part of the deceased's estate and is subject to probate.
• Automatic Revocation: Certain events automatically revoke the nomination, requiring members to update their nomination accordingly. These events include:
• Death of the Nominee: The nomination is revoked if the designated nominee dies before the member.
• Marriage of the Member: Subsequent marriage automatically cancels a prior nomination.

Recommendations:

• Members should proactively review and update their nomination after significant life events such as marriage, divorce, separation, or the death of their nominee.
• If a member's assets in the credit union exceed the nomination limit, it is advisable to create or update their will to ensure the distribution of their entire estate according to their wishes.

While the nomination facility offers significant advantages, it is crucial to understand its limitations to ensure that your assets are distributed as intended.