Bank account for minor (2yr old) for lump sum gift deposit

M

makeovermepls

New Member
Messages
3
Hi,

Not sure if this is the right forum, hopefully it is!

My 2 year old has received a gift from his grandparents (a lump sum amount of 100,000, in his name).
He will have to pay CAT on it, I've already spoken to an accountant who will do that return.
We are trying to figure out how to lodge the cheque into a bank account so that we can
  1. pay out the CAT to revenue by direct debit (in his name)
  2. from there be able to put the remainder into a bare trust or investment account of some sort.
He has a credit union account in his name, but they have a limit as to the lump sum so can't lodge there. I can't seem to find any information on any Irish bank that would allow this, all the child saver accounts seem to be for regular savings, smaller amounts, or the age is for older children.
Just wondering if any has any ideas what the best approach would be?

Many thanks,
 
Maybe it's too late, but if not given the cheque is not yet cashed, is them giving your son 100k really the most efficient way of doing things? It will extinguish his Group B threshold and result in a 20k tax bill? Could they give him 40k now and then 6k a year after (3k each) to get to the 100K, thereby taking advantage of the small gift exemption?
 
misemoi said:
Could they give him 40k now and then 6k a year after (3k each) to get to the 100K, thereby taking advantage of the small gift exemption?
Click to expand...
Thank you for the reply. They have been using the small gift exemption already each year to gift him some money. I think this is just a one off that they want to do now rather than spreading it out. They may continue to do the amounts in the future that would fall under the small gift exemption, but for dealing with a lump sum in this year we are trying to find the best way to do it.
 
Could his grandparents gift both parents 3k each and then , both parents and each grandparent can each gift the child 3k, bringing the total to 12 per year ?
 
creditworthy said:
Could his grandparents gift both parents 3k each and then , both parents and each grandparent can each gift the child 3k, bringing the total to 12 per year ?
Click to expand...
This would be considered as the grandparents each gifting the child €6K so in excess of the small gift exemption. Do a search for "gift splitting".

Small Gifts Exemption- Direct and Indirect gifts

So the small gifts exemption is currently at €3k and anything above that from a single individual during a calendar year is subject to the CAT rules. The exemption applies to any number of donors, so if you have a large circle of generous family & friends, you could theoretically receive €3k a...
www.askaboutmoney.com
 
You must log in or register to reply here.
Back
Top