Credit union holding & inheritence tax

[Calico]

Hi All,

I was just thinking, when a someone joins a credit union they can nominate someone to receive their holding when they die. This money does not get added to the person's estate. That being said, does anyone know if the benefits from credit union accounts are liable for inheritence tax when they passed on?

I should also ask, if a person dies in debt, does the credit union holding escape their creditors?

 

[Slim]

Hi All,

I was just thinking, when a someone joins a credit union they can nominate someone to receive their holding when they die. This money does not get added to the person's estate. That being said, does anyone know if the benefits from credit union accounts are liable for inheritence tax when they passed on?

I should also ask, if a person dies in debt, does the credit union holding escape their creditors?

The Credit Union Act is silent on inheritance tax so I would think it is a matter for the individual to square up with Revenue at year end.

In relation to creditors, up to €23,000 may be paid to the nominee and is excluded from the deceased's estate. The executor/administrator of the estate will have to deal with any creditors' claims, so yes it is free of creditors' claims up to €23k.