Best way to leave annual tax free allowance to grandchildren

[Broadcaster]

Hi
We are a couple in our late sixties and now have two grandchildren (as well as two children!). We'd like to start distributing some of our savings to our grandchildren and wonder how best to do this given the near zero interest rates on bank deposits. We already transfer the max tax allowance €3k x2 each) amount to our two children but would like something more long term with a better return for our grandchildren given their young age ...both under 1 year. Are there any savings policies offered by insurance companies that would fit the bill? Do these offer a better long term return.

Thanks in advance.

 

[EmmDee]

Hi
We are a couple in our late sixties and now have two grandchildren (as well as two children!). We'd like to start distributing some of our savings to our grandchildren and wonder how best to do this given the near zero interest rates on bank deposits. We already transfer the max tax allowance €3k x2 each) amount to our two children but would like something more long term with a better return for our grandchildren given their young age ...both under 1 year. Are there any savings policies offered by insurance companies that would fit the bill? Do these offer a better long term return.

Thanks in advance.

Others can speak to the investment options but one thing you may have missed - you can give €3k per annum tax free to anybody. So you have the option of also giving €3k per annum to the spouses of your children - doubling the amount you can give.

 

[noproblem]

You and your husband can together give €6000.00 to each grandchild and each child as well. That's €24,000.00 every year, which will run into a substantial sum over a few years.

 

[Gordon Gekko]

The life companies do dedicated Bare Trust products for children which might be ideal; €6k per year into the global equity fund option (via Zurich Life, Standard Life, etc). The advantage is that with life company funds, all taxes are dealt with at source. As others have pointed out, as a couple you can give €6k per year to anyone (i.e. daughter, son-in-law, grandchild, me...).

 

[Broadcaster]

The life companies do dedicated Bare Trust products for children which might be ideal; €6k per year into the global equity fund option (via Zurich Life, Standard Life, etc). The advantage is that with life company funds, all taxes are dealt with at source. As others have pointed out, as a couple you can give €6k per year to anyone (i.e. daughter, son-in-law, grandchild, me...).

Thanks everyone for the advice. The problem I found that while we can give the €6k per year each to our grandchildren we don't want it to sit in a bank deposit account with zero or as little to zero interest. I like the suggestion of investing in some sort of fund that will provide some half decent return for them. I suppose the charges will eat into that too but may be worth more than a deposit account.