Hi All,
I have recently been made redundant from a role I held for many a long year.
There was a significant redundancy payment which arose from this (circa 100k).
I am currently in a pickle as to what to do.
I am aware that if I receive Job Seekers Benefit for 1 year, I then become means tested to receive Job Seekers Allowance. As my redundancy payment and my other assets are above the €20,000 limit for assets, I am wondering how best to proceed.
An acquantance of mine suggested that I gift the majority of these assets to my son. He explained that by doing so I could bring my assets under the €20,000 limit and so claim Job Seekers Allowance. He further explained that because the assets are below the gift threshold to a child that there would be no gift tax payable, and that this arrangement was entirely legitimate (i.e. tax avoidance rather than tax evasion).
As such I was wondering if the above is correct? If I was to proceed with this is it true that the social welfare office could not take these assets into account, as they are no longer my assets, when assessing myself for Job Seekers Allowance. I am worried that if I were to do this they would take the fact that I had gifted these assets to my son into account, when assessing myself, even though it is entirely legitimate to transfer these assets to him (up to balance circa €416k).
Hope someone can shed some light on this situation.
Thanks for your help.
Nidot
I have recently been made redundant from a role I held for many a long year.
There was a significant redundancy payment which arose from this (circa 100k).
I am currently in a pickle as to what to do.
I am aware that if I receive Job Seekers Benefit for 1 year, I then become means tested to receive Job Seekers Allowance. As my redundancy payment and my other assets are above the €20,000 limit for assets, I am wondering how best to proceed.
An acquantance of mine suggested that I gift the majority of these assets to my son. He explained that by doing so I could bring my assets under the €20,000 limit and so claim Job Seekers Allowance. He further explained that because the assets are below the gift threshold to a child that there would be no gift tax payable, and that this arrangement was entirely legitimate (i.e. tax avoidance rather than tax evasion).
As such I was wondering if the above is correct? If I was to proceed with this is it true that the social welfare office could not take these assets into account, as they are no longer my assets, when assessing myself for Job Seekers Allowance. I am worried that if I were to do this they would take the fact that I had gifted these assets to my son into account, when assessing myself, even though it is entirely legitimate to transfer these assets to him (up to balance circa €416k).
Hope someone can shed some light on this situation.
Thanks for your help.
Nidot