Richard Bruton (Dublin North Central, Fine Gael)
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Question 512: To ask the Minister for Finance if his attention has been drawn to the fact that the new limit which he has introduced under section 21 of the Credit Union Act 1997 means that this pre-empts the distribution of a person's assets as set out in his or her will; and if he has satisfied himself that depositors are aware of the implications of the increased limit for the distribution of their assets. [43796/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Section 21 of the Credit Union Act, 1997 provides that a credit union member aged 16 or over, can nominate in writing a person or persons to become entitled to all or part of the member's property in the credit union at the time of the member's death up to a prescribed limit and provides for the member to vary or revoke their nomination.

The request for an increase in the Section 21 limit for nominations originated from the credit union movement, taking account of increased levels of savings and price changes since the limit was set in 1997. In their submission to my Department the Irish League of Credit Unions (ILCU) pointed out that nominations have a social purpose in that they ensure that the next-of-kin do not have to go through an expensive and time-consuming legal process in relation to the deceased member's property in the credit union. The increase in the limit from €13,000 to €23,000 was approved by the Registrar of Credit Unions and by the Credit Union Advisory Committee (CUAC), the statutory expert advisory body on credit union issues.

ILCU have advised my Department that they are revising their guidance notes for credit unions to ensure that members are advised when they are completing nomination forms as to the implications of the nomination in respect of any existing or subsequent wills, and that this is already highlighted in ILCU's nomination form.