Gift from grandparent

A grandparent wants to give us money for our son's (his grandson's) school fees.

Firstly what's the best way to give this money? Also where should we put the money until needed? Our son is starting private secondary school in 2 years.

Have you read the 3 best buy threads? Do you want a term deposit?

A gift from a parent to a child has a tax free threshold of €414,799.00. A gift from a grandparent to a grandchild has a tax free threshold of €41,481.00.

The above thresholds are incorrect.

The current "Group A threshold" (generally for gifts from parent to child) is €332,084.

The current "Group B threshold" (which applies to gifts from grandparents to their grandchildren) is €33,208 (i.e. 10% of the Group A threshold).

An annual gift of €3,000 is also permitted without eating into the above thresholds. For something like school fees, this exemption could be ideal.

I'm not an expert on deposit products, but Bank of Ireland's 2 year deposit product paying 3% for the first year and 6% for the second year looks to me like the best current offer by a country mile. You can even withdraw your funds after one year if you need them.

Grandparents can also give annual taxfree money to their own kids up to about €3k per annum. Why not just do that - simple solution!

Apologies specialk. The thresholds I gave were correct up to 7th December 2010, when they changed to those quoted by Gekko.