Martin Ferris (Kerry North, Sinn Fein)
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Question 204: To ask the Minister for Finance if he will make a statement on the case of a person (details supplied). [4194/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy's question relates to a situation where it is claimed that interest accumulated in respect of savings in an SSIA of a deceased spouse is not being paid over to the surviving spouse. The question does not make clear if there is a difficulty specifically in regard to the SSIA itself or if the difficulty is in some way related to the distribution of the estate of the deceased person. Accordingly, it is only possible to answer the question in general terms.

It must be borne in mind that there are specific provisions in general law in regard to the administration of an estate of a deceased person and these must be followed before the assets of the estate can be distributed. The funds in the SSIA constitute an asset of the estate of the deceased person. The net assets of the estate will be distributed to the beneficiaries by the executors or administrators following grant of probate or letters of administration.

The SSIA scheme commenced on 1 May 2001 and is administered by qualifying savings managers in accordance with legislation and guidelines issued by the Revenue Commissioners. In general terms, the amount of funds available on the death of an SSIA holder are set out in SSIA rules.

The maturing of an SSIA on the death of an individual is an automatic process and is administered by the qualifying savings manager concerned. The tax liability which falls due in the event of death is arrived at by deducting, from the aggregate market value of the assets in the account, the aggregate amount of all subscriptions and tax credits made to the SSIA, in so far as that amount has not previously been treated as withdrawn from the SSIA on a partial withdrawal. A rate of 23% is applied to the resulting figure to give the tax due. Once tax has been deducted, the SSIA maturity process is complete and the remaining funds become part of the estate of the deceased. In the case of an SSIA that was a deposit account from which no withdrawals had been made up until the date of death, tax at 23% would only apply to the interest earned.