Written answers

Thursday, 7 December 2006

Department of Finance

Special Incentive Savings Scheme

7:00 pm

Photo of Seán HaugheySeán Haughey (Dublin North Central, Fianna Fail)
Link to this: Individually | In context

Question 109: To ask the Minister for Finance if he will raise the €10,000 threshold for the payment of money out of a SSIA to the spouse of a deceased account holder, to €25,000 in cases where probate has not been finalised; and if he will make a statement on the matter. [42148/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

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. Individuals aged 18 and over who were resident in the State could open an SSIA account and in the case of a married couple, both spouses could open their own accounts. However, the SSIA rules do not deal specifically with the issue raised by the Deputy. Rather there are specific provisions in general law in relation 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 account constitute an asset of the estate of the deceased person. The net assets of the estate are distributed to the beneficiaries by the executors or administrators following grant of probate or of letters of administration.

On the death of an individual, his/her SSIA account is treated as maturing. In the case of an SSIA that was a deposit account from which no withdrawals had been made up until date of death, the capital invested by the SSIA account holder, together with the Government contribution, remains the property of the deceased individual's estate and are not taxed. Tax is charged (at 23%) only on the interest portion. The holding of an SSIA account by an individual, whose spouse has died, is not affected by the other spouse's death.

Comments

No comments

Log in or join to post a public comment.