I'm hoping to gift €3,000 to my child annually for the next 5 to 10 years under the Small Gift Exemption. I'm hoping they will then use this in 5 to 10 years time towards their house. If I gift it straight into their bank account now, I know it will be tempting for them to spend it immediately, or they may stop saving their own money. Is there a way that I can open a single, or joint account, in their name without them knowing about it for the moment ?. I'd do the transfer every year and document same, and then in 5 to 10 years, I can make them aware of the account which should have €15k or €30k in there at that stage. Any advice on how I can do this without my child knowing for the moment would be greatly appreciated.
Gifting €3,000 to child without them knowing for now
- Thread starter JimmyGF
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Dr Strangelove
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How old is the child?
No. Imagine if money launderers could do this?
It's either a gift or it's not.
@JimmyGF - why don't you open a 5 or 10 year state savings account , lodge the money in there, leave it sit until you are ready to hand it over to your adult child. Obviously, it doesn't have to be a SS account - any savings account , but the account will be in your own name. When they need it you can cash it in and give (gift) it to them.
Actually you can't do that as it is against the Revenue rules for the Small Gift Exemption.
See this previous thread and the article therein
Gifting it to them in that manner will fall under the CAT rules and lower their overall allowance.
This wouldn't avail of the Small Gift Exemption though?
Is that not more geared towards a minor child rather than an adult child?
In the article from Irish Independent in the AAM thread it says Appeals Commissioner, Mr. O'Higgins said:
"He added that it would have been “an obvious and straightforward course to establish a bank account in the appellant’s name and transfer funds gifted to the appellant to that place. No cogent explanation was given as to why this was not done”.
If it were me to avoid any problems in the future with Revenue I would have a separate account in their name rather than mine.
"He added that it would have been “an obvious and straightforward course to establish a bank account in the appellant’s name and transfer funds gifted to the appellant to that place. No cogent explanation was given as to why this was not done”.
If it were me to avoid any problems in the future with Revenue I would have a separate account in their name rather than mine.
Get them to open a credit union account. Its free to have a normal share account
They are pretty inaccessible so you can put the deposits there yearly. Also both parents can do it so you can give up to 6
The statements are v infrequent, once a year usually before the agm so you can remove them when they come in the post
They are pretty inaccessible so you can put the deposits there yearly. Also both parents can do it so you can give up to 6
The statements are v infrequent, once a year usually before the agm so you can remove them when they come in the post
That's not true. Shares are withdrawable on demand and many or most CUs facilitate online access these days. And even if they don't the CU branch office is easily accessible.
Is this a wind up? Intercepting and interfering with one's adult child's post?Tumeric said:
JoeRoberts
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Are you expecting their lifetime gift and inheritance to exceed the 400k limit ?
Dr Strangelove
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The best approach is simply to buy them a long-dated state savings product.
For sure they could cash it in early but there is a process to go though. It’s not like it’s sitting in a bank account.
For sure they could cash it in early but there is a process to go though. It’s not like it’s sitting in a bank account.
AndroidMan
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I dont believe the gift allowance is relevant to the 400k inheritance allowance
JoeRoberts
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If they won't reach the 400k then don't need to worry about the annual allowance at all.
Gordon Gekko
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I think that case was more about some guy (who was a lawyer from memory) who claimed that because in his mind he thought it was a gift, that it was a gift.
But one can draw up a proper declaration of trust and hold something for someone else.
But one can draw up a proper declaration of trust and hold something for someone else.
AndroidMan
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Regardless, its just not relevant