Rejecting nominated money from deceased a/c

[legal33]

Hi,

I am a joint nominee on a credit union account of a deceased person. I do not wish to take this money as I am already over the CAT threshold for the relevant category and so would have to pay tax at 33% on the money I would get.

1. I have heard the credit union have no option but to give me the cheque for half of the deceased person's account amount as the credit union are legally obliged to carry out the deceased member's wishes. Is this true?

2. If I am allowed to reject the cash, does it go to the other nominee or to the deceased's Estate?

Many thanks,

 

[WizardDr]

The relevant sections of the Credit Union Act 1997 are s22 and s23. On a perusal of the sections it would seem to me that that once a valid nomination is made and once the nominator has died, then the Credit Union will have to pay the amount to the nominees unless there is a material defect in the nomination.

I think you could then renounce it and I would make sure you contact the Executor as it would go back into the estate. I would not for example cash the cheque but endorse it for the Executor and get a letter from Executor accepting that you have renounced the gift and that it has gone back into the estate.