Is the Credit Union nomination an Inheritance Tax planning tip?

[Dave Vanian]

I saw from another thread that you can nominate someone to receive up to €27,000 from your Credit Union account on your death and it doesn't form part of your estate. Link.

If it's not part of your estate, then does it follow that it's not subject to Inheritance Tax? If your estate is likely to trigger Inheritance Tax for its recipient, should you put €27,000 into a Credit Union account and nominate them, along with giving them the €3,000 gift each year?

 

[Brendan Burgess]

I would imagine that it is part of your estate for tax purposes just doesn't require to go through probate.

Brendan

 

[jpd]

Correct

 

[Dave Vanian]

Thanks. The link above should probably make this clearer. It says "The nominated property does not form part of a deceased person’s estate."

 

[ClubMan]

Today CU link does seem to be misleading stating/implying several times that the nominee amount isn't part of your estate.

Here's a different take on it:

Taxation within Estates - D'Arcy & Co, Solicitors

darcyandco.ie

Are the Funds received under a Credit Union Nomination subject to Capital Acquisitions Tax (CAT) rules?

Yes the CAT rules apply including thresholds

 

[Dr Strangelove]

It’s probably useful more for cash flow if probate is drawn out.