Investment for grandchildren

[illdoit2morrow]

My mum would like to put give her grandchildren some money which they could access when they turn 18. There are five grandchildren range in age from 4 to 17.
She was looking at giving them 5K each.

Would a separate investment policy for each grandchild be a recommended way to do this?
With the current tax rules, a payment of 3K this year and an additional 2k next year would be the most efficient and easiest way to do this?
Are there any other ways this could be done or anything else my Mum should consider before doing anything like this?

 

[ClubMan]

She was looking at giving them 5K each.

She might be better giving them €3K in any one year in order to avail of the Small Gift Exemption:

Small Gift Exemption

Exemption from CAT on small gifts

www.revenue.ie

If her spouse/partner is still around then they could also gift €3K tax free.
On the other hand, this may be moot if there's no concern about eating into the childrens' lifetime CAT group B threshold.

CAT groups and group thresholds

This page explains thresholds, rates and aggregation rules for calculating Capital Acquisitions Tax

www.revenue.ie

Would a separate investment policy for each grandchild be a recommended way to do this?
With the current tax rules, a payment of 3K this year and an additional 2k next year would be the most efficient and easiest way to do this?
Are there any other ways this could be done or anything else my Mum should consider before doing anything like this?

Maybe have a look at some of the existing threads on this topic?

Google Search

 

[GSheehy]

Is Granny going to be gifting/bequeathing all of them more money, say more than €40,000?

 

[Dr Strangelove]

Would a separate investment policy for each grandchild be a recommended way to do this?

It sounds too elaborate for €5k.

Just open credit union accounts for each child and pay in €3k this year and €2k next year to avail of small gift exemption.

 

[ClubMan]

Is Granny going to be gifting/bequeathing all of them more money, say more than €40,000?

Or any of the grandparents or others in CAT group B?

 

[ClubMan]

My mum would like to put give her grandchildren some money which they could access when they turn 18. There are five grandchildren range in age from 4 to 17.

For the younger ones there may be an argument in favour of some form of equity investment. For the one(s?) closer to 18 it may make sense to just keep the gift money on deposit for the year or two to "maturity".