Amounts above the state guarantee are covered provided they come from certain sources, like a bequeath from a deceased person's estate
Q: Liam, I received an inheritance from my late mother’s estate and the amount is significant. It’s going to be deposited into my account and I’m not sure what I’m going to do with it. I’m worried because it’s above the state guaranteed amount, but I don’t want to make any quick decisions either. So, do I need to open several different accounts or what would you suggest?
A. There is a provision in the EU Directive on Deposit Guarantee Scheme (2014/49/EU) which allows for guaranteeing monies that are above the amount you’re ordinarily covered for i.e. €100,000 per individual per institution or €200,000 per couple per institution.
The directive refers to covering temporary high balances for a period of six months, provided the funds came from certain events, one of which are amounts paid from the distribution of a deceased person's estate.
If, for example, you were to receive €350,000 and that sum came from your late mother’s estate, the full amount is covered under the guarantee scheme for a period of six months, from the date it was lodged to your account.
So, you don’t have to worry, and you don’t have to open several different accounts and you don’t have to make a quick decision – you have six months to make up your mind and during that time, the full amount in your account is guaranteed.
There are other events which qualify for this dispensation which include monies received from the sale of a persons’ family home, amounts paid in respect of insurance benefits, personal injuries, disability and incapacity benefits, wrongful conviction, unfair dismissal, redundancy, retirement benefits, marriage, judicial separation, dissolution of civil partnership, and divorce.