Gift from under age child to parent

Sonnyjim

Registered User
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2
For a gift, can a parent gift property from the child to themselves? Child being 5 years old.
Sounds morally wrong as i write this so im guessing its not allowed.
It would be a tax saving measure in this instance but wanting to know if it would be allowed.
Thanks
 
How would a 5 year old child have the capacity to transfer an asset into someone else's name? That would involve a minor entering a contract which they cannot do.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
if the gift was given to a minor then there has to be someone as their legal guardian.
 
Would a trust not have to be created for the child "to hold" the funds from Aunty until the child attains majority ?
If so, the trust would have to be administered by a trustee(s) for the benefit of the beneficiary child.
On the child attaining majority the trustee's obligation would be to deliver up the funds or otherwise account for them to the beneficiary.

I cannot see how the parent could "gift" the funds from such a trust to themselves during the currency of the trust.
Remember that the funds in the trust are the effective property of the child.
For a parent to "gift" the funds to themselves would mean that the funds were destined never to be returned to the child. The concept of a gift is that of something received with permanent entitlement to full ownership. For example, if I buy you a mobile telephone for your birthday it then becomes your permanent property in absolute with no lien on it of any kind.
You cannot gift someone else's property to yourself.

A parent might be a trustee of the trust fund and take effective control of the funds. However, that is nothing like taking ownership to the funds in the guise of a gift and would still require accounting for the funds within the terms of the trust deed !
 
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