Credit Union Nomination in Ireland: Limits, Rules, and the Marriage Trap
What a Credit Union Nomination Does
A credit union nomination is a statutory tool that allows members aged 16 or over to direct their credit union balances — shares, deposits, and any attached insurance proceeds — to a named beneficiary on death. The nominated amount passes directly to the beneficiary, bypassing probate entirely. It does not form part of the deceased's general estate and cannot be overridden by the terms of a will.
For families dealing with the cash-flow freeze that hits when banks lock a deceased person's accounts pending probate, a valid nomination can provide access to nominated funds without waiting for a Grant of Probate.
The €27,000 Limit
The maximum amount that can pass via a credit union nomination is capped at €27,000 per member. This includes shares, deposits, and any insurance or death benefit proceeds payable through the credit union membership.
If the member's total credit union balance exceeds €27,000, the excess above the nomination limit falls back into the general estate and is distributed under the will (or intestacy rules). This means the nominated beneficiary receives up to €27,000 directly; any remaining balance goes through probate.
The Marriage Revocation Rule
This is the trap that catches the most people: any subsequent marriage automatically and completely revokes an existing credit union nomination.
Divorce and separation, by contrast, do not revoke a nomination. Someone who was married, nominated their spouse, then divorced still has a valid nomination in favour of their ex-spouse — unless they actively revoke it and make a new one.
The practical result: anyone who made a nomination before getting married almost certainly has an invalid nomination. The funds they thought were earmarked for a named beneficiary will instead fall into the general estate, where they are distributed under the will or intestacy rules — potentially to someone entirely different.
After getting married, make a new nomination immediately. It takes five minutes at your local credit union branch.
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CAT Still Applies
Although nominated funds bypass probate, they do not bypass Capital Acquisitions Tax. The beneficiary must include the nomination payout in their lifetime CAT calculation, aggregating it with any other gifts or inheritances received within the same group threshold.
If a parent nominates their child (Group A) for €27,000, that amount is aggregated against the child's Group A lifetime threshold. For most children who have not received large prior gifts, this will fall well within the threshold. But if a parent has already gifted the child significant sums — a house deposit, business funding — the nomination payout may push them over the threshold, triggering a 33% tax on the excess.
For Group C beneficiaries (cohabiting partners, friends, distant relatives), the €20,000 threshold means almost any nomination above that amount generates a tax bill. A €27,000 nomination to a cohabiting partner creates a taxable excess of €7,000, resulting in €2,310 in CAT — a modest but real liability that the beneficiary must declare on their IT38 return.
How to Make or Update a Nomination
The process is simple and free:
- Visit your local credit union branch
- Request a Nomination Form
- Complete the form naming your beneficiary (or beneficiaries — you can split between multiple people)
- Sign in the presence of two witnesses (neither of whom can be the nominated beneficiary)
- Submit the form to the credit union
The nomination takes effect immediately. There is no registration fee and no legal advice required. You can revoke or change your nomination at any time by completing a new form.
Review your nomination after any marriage, separation, or significant change in your financial circumstances. The five-minute trip to the credit union could save your family weeks of probate delays and ensure the money reaches the right person.
The Ireland End-of-Life Planning Guide includes a credit union nomination review checklist alongside the full suite of probate-bypass tools — joint tenancy, insurance designations, and pension nominations.
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