Gift Tax Exemption

G

Grandad

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Apologies for what are probably stupid questions in relation to gift tax exemptions.

Taking the following 2 statements into account on gift tax:

These thresholds can be reached either by a single gift or by a series of gifts and inheritances over a period of years. Only prior gifts and inheritances to which the same group threshold applies are aggregated (added together) for the purposes of calculating tax.

Exemptions:
the first €3,000 of all gifts taken by a donee from one disponer in any calendar year.

Does this mean that the first €3,000 each year would not need to be declared at any point? Is this still the case if the disponer gave a €3,000 gift to the donee 10 years in a row (for example)?
Does this gift have any bearing an inheritance between the same parties?

Thanks.
 
The €3k can be completely ignored. Doesn't need to be declared, doesn't need to be aggregated for any future limits or thresholds. And it is €3k per donor/donee combo. Any donor can donate to any number of donees and any donee can receive from any number of donors each year if each transaction is within the €3k limit. What you can't do is circumvent the limit by any skulduggery e.g. Peter gives €3k to Mary and also gives €3k to Paul with the intention that Paul gives it to Mary.
 
So if a married couple decide to give a tax free gift (up to 3k) to their kids each year, how should they do that? Is it ok to put it in a bank account in the child's name, even though the parent still has control over that bank account as the child is a minor?
 
Yes. Demonstrable change of beneficial ownership. I remember a client of mine with a newborn baby around the time of the financial crisis. He gave the child €549k which was the threshold at that time plus €6k. The logic was that the threshold was forecast to drop (which it did).
 
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