Hello. I have given my son various lump sums over the years, and he has now almost reached the lifetime gift tax threshold. I would like to give my son an additional lump sum for the benefit of our grandchildren. I would prefer to give a one off lump sum rather than gift €3,000 every year tax free. Is it possible to set-up a "trust" for the benefit of my grandchildren that my son could administer, that would thus avoid him going over his lifetime exemption threshold for gift tax? If so, how does one go about setting up such a trust? Does the trust have to be for a specific purpose like third level education? I do not want to gift the money directly to my grandchildren as a lump sum as they are at very young age.
Gifting Lump Sum To Grandchildren Via A Trust
- Thread starter taytoman
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Brendan Burgess
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Trusts are very complicated and you would spend a lot of money on legal advice, tax advice and on administration. I think that there is also a trust tax as well.
Unless you are leaving millions, it's probably not advisable to use a trust.
Why do you want to leave it to them now, if you don't want them to benefit from it? Leave it in your will and if you don't die before they need the money, you can give it to them yourself.
Brendan
Unless you are leaving millions, it's probably not advisable to use a trust.
Why do you want to leave it to them now, if you don't want them to benefit from it? Leave it in your will and if you don't die before they need the money, you can give it to them yourself.
Brendan