Looking for advice for friend about CAT Revenue return

J

Jimmy Choo

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A friend has asked me for some advice, about gifting some money to their children now. It will be quite a bit less than the 80% of €335,000, so they feel from reading the Revenue rules that they won't have to make an immediate tax return. As they will most likely not be making another gift during their lifetime, is it up to their children to make the declaration, when the estate is being sorted after the parent's death.
 
It is not your friend who has to file the tax return, IT38, but the recipients, the children

As the amounts are less than 80% of the tax-free threshold of € 335,000, no return is required

Presumably your friend has sufficient resources to gift the money and will not need it in the future
 
Bear in mind (and without knowing the friends age, may not be an issue) but a 5 yr rule applies for any transfer of assets if they have were applying for Fair Deal.
 
Thanks very much for the replies.

jpd said:
As the amounts are less than 80% of the tax-free threshold of € 335,000, no return is required

Presumably your friend has sufficient resources to gift the money and will not need it in the future
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The fact that no return is required now is what is worrying them. What they are worried about is if the return is not needed now when exactly do Revenue get notified as they don't want either they or their children to break any rules.

They spoke with a financial advisor so I'm presuming they won't need the money in the future but I did mention that to them also. I'll also mention the Fair Deal aspect to them too.
 
The recipient has to notify Revenue when they pass 80% of the threshold

Revenue will only get notified when the probate is applied for - other than that they leave it up to the recipients to declare any gifts, if a declaration is required

It is a self-declared tax -
 
R. would know about the legacy, when the recipient buys a property. They have elaborate risk-profiling systems. A simple question could raise a red flag...explain the source of funds?
 
Solicitors will also ask beneficiaries when they are distributing assets from an estate. So that should prompt the beneficiaries to make a declaration to revenue and declare if it went over the threshold.
 
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