Gifting money to children - tax implications

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Grendel

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My dad was asking me to look into how he might possibly give me some money now, instead of when he passes. but we're not sure if there are any tax implications?
I understand that the threshold for CGT is €310,000. But just say he wanted to give me €100k now, would that be liable for tax?
From reading this article, it seems to be possible, but not sure how it should be done.

www.independent.ie

Should I gift money to our children now?

We are retired and fortunate to be on defined benefit pensions, but we also have about €500,000 in savings. We have two grown-up children in their late 20s and early 30s, one with a young family while the other has plans to start one at some point.
www.independent.ie www.independent.ie
 
The €100k is not taxable but will count towards your inheritance threshold of €310k
 
Palerider said:
The €100k is not taxable but will count towards your inheritance threshold of €310k
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OK thanks. So, in theory, €310k could be handed over to a child now and no tax is due on it? I assume then that the sale of the family home would then be taxed at 33%.
 
Thanks. One other question. I'm reading about gift tax exemption, but unsure as to the exact rules. Is it only direct children that can receive gifts from parents? (e.g. €3k each from both parents). Or are in-laws and grandchildren included as well? This page seems to indicate that spouses and grandchildren are also inluded (see Example 1)

 
You may receive a gift up to the value of €3,000 from any person in any calendar year without having to pay Capital Acquisitions Tax (CAT). This means that you may take a gift from several people in the same calendar year and the first €3,000 from each disponer is exempt from CAT
 
Grendel said:
Thanks. One other question. I'm reading about gift tax exemption, but unsure as to the exact rules. Is it only direct children that can receive gifts from parents? (e.g. €3k each from both parents). Or are in-laws and grandchildren included as well? This page seems to indicate that spouses and grandchildren are also inluded (see Example 1)

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The 3k annual gift exemption applies to anyone, so for example if your were married and had 2 kids, your father could give 3k to each of you per year, and your mother could do the same, so (3k x 4) x 2 = 24k
 
Coldwarrior said:
The 3k annual gift exemption applies to anyone, so for example if your were married and had 2 kids, your father could give 3k to each of you per year, and your mother could do the same, so (3k x 4) x 2 = 24k
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Ok thanks Coldwarrior. That's good to know.

If a payment was to come from the mother, is there proof needed that the monies actually belong to her? what's to stop the father just lodging money into her account and then that money used as gifts?

And lastly. If, for instance, I was to receive inheritance money today (e.g. €100k), I assume I would still then be allowed to receive these gift payments and it wouldn't affect my threshold?
 
Just to reiterate Marc's earlier point........ your dad is able to gift €3000 to any number of people in a calendar year. For example, he can give €3000 to 33 people if he wants to..... And you are able to receive a payment of €3000 from any number of people in a calendar year.

These payments of €3000 would not be liable for CAT or count towards the inheritance threshold from your parents.
 
Grendel said:
If a payment was to come from the mother, is there proof needed that the monies actually belong to her? what's to stop the father just lodging money into her account and then that money used as gifts?
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Nothing essentially. Spouses can transfer between themselves without any implications. My parents do a gift transfer and it comes from a joint account. Probably best that it comes from an account in her name or a joint account. Or cash I guess.

Grendel said:
And lastly. If, for instance, I was to receive inheritance money today (e.g. €100k), I assume I would still then be allowed to receive these gift payments and it wouldn't affect my threshold?
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Yes - gifts under the threshold are exempted from any calculation of Inheritance Tax
 
Can you define per calendar year please? Can I give €3000 now in December 2019 and another in January 2020 without tax?
 
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