In general, as we highlighted in a previous post on probate and estate matters (click here to view), where a person dies without leaving a valid Will, a court process – known as ‘Letters of Administration’ is required before their assets/ estate can be accessed.
Here in Trinidad and Tobago, one of the exceptions to this principle is found under the Co-operative Societies’ Act, Chap. 81:03. By virtue of Section 41 of that Act, a Co-operative Society (such as a Credit Union) can pay out sums due to a deceased member of the Society under certain conditions.
Prior to 2020, Co-operative Societies could pay out Five Thousand Dollars ($5,000.00) to a nominee (beneficiary) or legal personal representative of a deceased member without Letters of Administration.
However, pursuant to section 8 of the Finance Act, 2019, effective 1st January, 2020, Co-operative Societies can pay up to Fifty Thousand Dollars ($50,000.00) to nominees/beneficiaries/legal personal representatives of a deceased member without the need for Letters of Administration.
All other monies over and above Fifty Thousand Dollars ($50,000.00)
due to the deceased member from the Co-operative Society fall into his/her
estate and are subject to the laws relating to inheritance. Refer to the Statutory Rules of Intestacy for some more information on who is entitled to benefit.
As conditions may apply, it is best to contact an Attorney for advice and/or contact the relevant Co-operative Society for more information on the entitlement to disbursement.
Saelese Haynes | Attorney-at-law | Titan Chambers
Even if you have a named beneficiary anyone can apply for your shares in the credit union?
Hi Cheryl, not if there is a named beneficiary who is alive – that will be a direct transfer to that person. This article applies if your policies/shares are unassigned or assigned to your estate.