Robert Troy (Longford-Westmeath, Fianna Fail)
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312.To ask the Minister for Finance the reason the credit union will allow a client to hold up to €30,000 on deposit when the ceiling with regard to probate is €27,000; his views on whether these figures should be brought in line; and if he will ensure that deposit holders in financial institutions are made aware, through the relevant institution, of the rules regarding levels of deposit before probate is applied. [31070/24]

Jack Chambers (Dublin West, Fianna Fail)
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I thank the Deputy for his question.

Just to inform the Deputy, there is a cap of €100,000, not €30,000 on member savings, as outlined in Regulation 35 of the Credit Union Act 1997 (Regulatory Requirements) 2016.

A number of credit unions were approved to retain individual member savings in excess of €100,000 that were held on commencement of the regulations under Regulation 36(2). Additionally, under Regulation 37, some credit unions with assets in excess of €100 million were approved to increase individual member savings in excess of €100,000. As the Deputy is aware, the Central Bank of Ireland makes all of its regulations independent of Government.

Individual credit unions make independent decisions to limit the amount of savings they accept from their members to less than €100,000, for example, a limit of €30,000 as per your question. This is a decision for the respective board of each independent credit union.

Under Section 21 of the Credit Union Act 1997 (an amended by the Credit Union Amendment Act 2023) , a Credit Union member is entitled to nominate a person to be the beneficiary of their savings following their death up to a limit of €27,000. This is a unique provision for credit union members.

Any amount in excess of €27,000 are deemed assets of the deceased's estate and credit unions are obliged to administer any such funds in accordance with the rules of probate (if there is a will), or the law of succession (if there is no will). The probate office of the High Court deals with all matters relating to rules of probate.

To summarise, the amount of savings a credit union member deposits and the nomination cap are separate and distinct provisions.

Nomination is an exclusive provision, specifically designed for credit union members, allowing the designated individual to access up to €27,000 from the deceased member’s funds, bypassing potentially lengthy legal processes.

It would not be suitable for me to provide further commentary on a credit union savings cap or any independent decisions made by credit union boards.

I trust this clarifies matters for the Deputy.