Credit Unions and funeral directors
The Probate, Administration & Trusts Committee has published a reminder about restrictions on paying from Credit Union accounts.
The Probate, Administration & Trusts Committee has been asked by the Irish League of Credit Unions (ILCU) to remind practitioners that unlike other financial institutions, the directors of a Credit Union have no statutory authority to pay the funeral director out of the account of a deceased member, even where an invoice is produced.
Similarly, where there has been a nomination of a Credit Union account under Section 21 of the Credit Union Act 1997 (as amended) any remaining balance cannot be paid out by the directors of a Credit Union under the “small accounts procedure” provided for in Section 23 of the Credit Union Act 1997 (as amended) without the production of a grant of representation.
The Committee intends raising the possibility of reform of the legislation to remove these two impediments to the straightforward administration of estates in these circumstances with the appropriate authorities.
The Committee would like to take this opportunity to remind practitioners that they can seek to pay the funeral director out of most other accounts held by the deceased and that it is best practice to pay the funeral director as early as possible in the administration process.
