Hi there,
I have a query with regard to whether gift tax should apply on a certain transaction.
My uncle had a general power of attorney for his sisters affairs (bank accounts etc. (my aunt). She is unfortunately in a nursing home and has alzheimers. In the interest of ensuring she was getting a good rate of interest on her deposit accounts he went to get money out of the bank and transfer it to a new bank. In setting up the new account the bank requested anti money laundering certs etc. She is not in a position to sign anything and hence (through help on this forum and through a solicitor) I and my uncle learned that the general power of attorney is no longer valid (we didn't realise the difference between general and enduring power of attorney).
Therefore my uncle had to pay the money into a bank account with the new bank in his own name (the cheque had been made out to him as a result of the general power of attorney).
Sorry this is so long winded, but my query is whether my uncle could be liable to gift tax on this transaction. He is executor on my aunts estate and is not beneficially entitled to the money in the account. However, in light of the Revenue investigation and bank reporting on deposit accounts that will have earned interest over €600 (don't know exact figure), could this arise as an issue? Is it any defence / would the Revenue accept the above case as being a "genuine" reason for transferring the money into account essentially in trust for my aunt?
Thanks.
I have a query with regard to whether gift tax should apply on a certain transaction.
My uncle had a general power of attorney for his sisters affairs (bank accounts etc. (my aunt). She is unfortunately in a nursing home and has alzheimers. In the interest of ensuring she was getting a good rate of interest on her deposit accounts he went to get money out of the bank and transfer it to a new bank. In setting up the new account the bank requested anti money laundering certs etc. She is not in a position to sign anything and hence (through help on this forum and through a solicitor) I and my uncle learned that the general power of attorney is no longer valid (we didn't realise the difference between general and enduring power of attorney).
Therefore my uncle had to pay the money into a bank account with the new bank in his own name (the cheque had been made out to him as a result of the general power of attorney).
Sorry this is so long winded, but my query is whether my uncle could be liable to gift tax on this transaction. He is executor on my aunts estate and is not beneficially entitled to the money in the account. However, in light of the Revenue investigation and bank reporting on deposit accounts that will have earned interest over €600 (don't know exact figure), could this arise as an issue? Is it any defence / would the Revenue accept the above case as being a "genuine" reason for transferring the money into account essentially in trust for my aunt?
Thanks.