Credit unions and death benefits

[Granny bear]

I'm new to this forum so I hope I'm doing this right.

 

My mother passed away a couple of weeks ago.

 

She was well organised and made sure her affairs were in order.

 

She made a will and made sure there was enough money in the credit union to pay for her funeral.

 

When I went to the credit union with the death certificate and the will I was informed that it would take between 6 - 8 weeks to sort out.

 

I was also told that even though she left the money to me in her will the money would go to the person she named on the nomination form

and they couldn't tell me who that is.

This seems to me to be a very long time to sort out is this normal?

[sir_gilmour]

Hi Granny bear

Welcome to The Consumer Action Group.

 

 

I am just letting you know that as you haven't had any replies to your post yet, it might be better if you post your message again in an appropriate sub-forum. You will get lots of help there.

 

Also take some time to read around the forum and get used to the layout. It is a big forum and takes a lot of getting used to.

 

 

Once you start to find your way, you will soon realise that it is fairly easy to get round and to get the help you need.

 

It can be bit confusing at first.

[honeybee13]

Hello and welcome to CAG.

 

I've never dealt with a credit union, but I have dealt with probate and I know it isn't quick.

 

I'll move your thread to the legal forum and see if anyone knows the answers for you. There will be a short term redirect from here.

 

My best, HB

[brokebutnotbeatn]

Probate takes several months usually to apply for and thereafter about 6 months to finalise. Who is named as the executor in your mother's will? Funeral (but not wake) expenses are usually submitted to the money holders e.g. the bank and paid by them directly so yes, it appears to be in order. Is the credit union just funeral expense cover? Any other property will need to be handled by the executor of the will in the usual manner.

[Granny bear]

I received word from the credit union today that I am not the nominated person. My mother changed her nomination in 2003. I was told they are going to write out to the person today. This has now created other problems for me as I have received bills from the funeral directors, my mothers care home and a rates bill. The only other member of my family has told me if they are left the money they have no intention of paying her outstanding debts and it is my problem as her next of kin. I do not have the money to pay these. What do I do now?

[brokebutnotbeatn]

Please answer the questions asked in post #4. You are not liable for your mother's bills. The executor of the will will have to handle this.

[Granny bear]

My husband is the executor of the will. Is there anything he can do?

[brokebutnotbeatn]

As the executor he has certain legal responsibilities; you can research these on line. Reasonable expenses can be submitted to her bank for direct payment. This would not include wake fees but these then form part of the debtors to be paid. You have not answered my question, what is the credit union policy? Your husband needs to collate a full state of your mother's financial affairs. An insurance policy will only pay out to a nominated person if it has been written in trust to this person. What was the size (estimated) of your mother's will and are you the named beneficiary in her will? The care home and rates bills form part of the claim on your mother's estate, not on you personally. If the insurance policy was left in trust then debtors cannot touch this I think (but the executor will need a copy of the policy). I suggest your husband contacts the credit union in his capacity as the executor of your mother's estate.

[brokebutnotbeatn]

The executor will collate a gross and net figure for your mother's estate and any outstanding debts will be paid. The funeral directors bill should be passed to your mother's bank for payment - assuming sufficient funds - or to the executor assuming that funds have to be liquidated.

[brokebutnotbeatn]

Credit Union should I believe be dealing with the executor as opposed to a nominated person. I would research this online and your husband should call them to discuss is my best advice.

[Granny bear]

Can my family get my savings at death?

 

Of course! But first you must complete a Form of Nomination available at our Reception desk. On this form, you will be asked to name the person, persons or charitable group you wish to receive your shares in the event of your death. Derry Credit Union can disburse amounts up to £10,000 to the person(s) or group nominated upon request. (Probate must be extracted on amounts over £10,000.) By completing this nomination, you can be assured that the person(s) or group you intended to receive your shares will receive them without red tape or delay. You must update your nomination if you marry, divorce or if the person nominated dies before you. In addition, a properly completed Form of Nomination takes precedence over a will. As you go through the course of your life and update your will, make sure you update your nomination too! You may change your nomination as often as you like and you may name more than one person or group as your nominee.

 

This is from the credit inion website.

[brokebutnotbeatn]

deleted as duplicate

[brokebutnotbeatn]

OK. A really quick search says "The nominated property does not form part of a deceased person’s estate"..."The maximum amount that can pass under a nomination is €23,000. Any amount in excess of this balance becomes part of the deceased member’s estate" "However, a nomination is not revocable or variable by the terms of the nominator’s will."

 

So, whomever your mother names as the nominee will receive the funds and they may do with them what they will.

[brokebutnotbeatn]

Sorry, our posts crossed. You will not inherit under the terms of her nomination. Did your mother have any property, bank account, savings etc?

[brokebutnotbeatn]

"it will be necessary to check how the funeral will be paid for before making any arrangements; otherwise you may have to pay the bill yourself. It will usually be necessary to go through the deceased’s papers to establish their financial position.". You are in a most unfortunate position I fear. My heart goes out to you. "If the person arranging the funeral is in receipt of certain Social Security benefits, they may be able to get a grant or loan from the Social Security office to help pay for the funeral. An application should be made to your local Social Security Office". You might try and appeal to the good nature of the person receiving the money in the Derry Union Savings but if your mother did not change the nominee then they are not responsible for any expenses you have incurred with her funeral. Is there anything in your mother's papers that shows she did change the name and that the Derry Union may have made a mistake???

[citizenB]

This thread is now in "General Legal Issues"

 

It is purely an administrative move.