In this blog, we are going to look at some of the detail on the importance of keeping your Membership file up-to- date at the Donegal Credit Union and in particular, “Nominees on your account”.
Nominees, what about them?
Credit Unions have a nomination facility whereby if you are over 16 years, a Member can nominate who is to receive the property of your Credit Union accounts upon your death. All types of property in the Credit Union can be subject to nomination, this includes savings (shares/deposits), loans and insurances.
At the time of joining, the Credit Union will give each Member the option of filling out a nomination form whilst explaining in full the implications of doing so.
To be valid, a nomination must:
* be made by a person of 16 years or over who has been duly admitted as a Member of the Credit Union in accordance with the Act and the Rules;
* be in writing and delivered during the Member’s lifetime to, or made in a book kept at, the registered office of the Credit Union; name and clearly identify (e.g. there is more than one person of the same name) the person or persons to be entitled to the benefit of the nomination (the “Nominee”).
Note that this person or persons (who need not be a Member of the Credit Union or next of kin) cannot be an Officer of the Credit Union unless he/she is also a Member of the family of the nominator; and specify the property involved i.e. whether it is all or part only of the nominator’s property in the Credit Union, subject to the statutory maximum of €23,000 (increased from €13,000 with effect from 17 October 2006).
Considerations when selecting your Nominee
1. A valid nomination covers all Credit Union property. Property may be assigned to one person only (not necessarily next of kin) or divided between various people. Such division of property between various Nominees should be made absolutely clear on the form of nomination. Where only one person is nominated by the Member, they will be the sole beneficiary of their Credit Union property on death.
2. The nomination will supersede their Will and is not revocable or variable by the Will or any Codicil to it.
3. Where a Member marries after having completed a nomination, that marriage will automatically revoke the nomination (meaning no nomination is in existence) and they may wish to consider completing a new nomination at that time.
4. The death of the Nominee (prior to that of the Nominator) will automatically revoke a nomination and they may wish to consider completing a new nomination at that time.
5. Completion of a new nomination revokes all previous nominations.
6. If the nomination does not cover all the nominator’s property, the unaffected property forms part of the nominator’s estate and as such, may only be released by the Credit Union to the executor or administrator on production of a Grant of Probate or Letters of Administration
7. In order to be valid, the form of nomination must either:
➢ be on file at the registered office of the Credit Union; or
➢ be delivered to the registered office during the Nominator’s lifetime.