Must a €3,000 gift cheque be cashed before the year end ?

H

Hasbeen

Registered User
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If a person was to give his son or daughter a €3k gift this Christmas eve 2022 would she have to lodge it and it be cleared before 1.1.2023 in order for it to count as a gift for 2022 . There are very few banking days post Christmas so would this become an issue ,
 
Surely, if they gift €3k by, say, cheque then the date of the gift is the date on the cheque, not the day that it's lodged?
 
Imagine giving your child a cheque instead of sending them money via bank transfer.
 
It’s when the cheque has cleared.

This is because a gift needs to be irrevocable and until a cheque has cleared, it can be cancelled and made to bounce.
 
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Tickle said:
Imagine giving your child a cheque instead of sending them money via bank transfer.
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Hello Tickle. I don't know how you assumed it's a child. I was referring to a grown up son or daughter. A cheque with a nicely worded and heartfelt written Christmas card is much nicer and homely than a cold bank transfer just from the sound of it , better do it a week earlier rather than trying to upstage Santa on Christmas Eve.
 
Gordon Gekko said:
It’s when the cheque has cleared.

This is because a gift needs to be irrevocable and until a cheque has cleared, it can be cancelled and made to bounce.
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How about a bank draft? Surely then it doesn’t matter when it’s cashed?
 
ClubMan said:
Not hard to imagine.
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Never said it was.

Hasbeen said:
Hello Tickle. I don't know how you assumed it's a child. I was referring to a grown up son or daughter.
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I assumed it was a son or a daughter, i.e. someone's child, as per the OP.


Anyway, gifting a cheque is making a meal of it in my view. Our opinions can differ on it, but it is a legitimate alternative.
 
luckystar said:
How about a bank draft? Surely then it doesn’t matter when it’s cashed?
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Why introduce any element of doubt?

Perhaps with a bank draft, it’s when it’s lodged? (Do bank drafts always clear immediately, I’m not sure?)

For the avoidance of doubt, it’s best to always do a transfer!
 
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Banks are open for 2 days after Christmas (29th and 30th). Unless your child has an account at the same bank the cheque is drawn on, it will not be cleared before year end. Same applies with a bank draft, they follow the same process as a cheque and can be bounced, (although only in fewer circumstances)

You could always do an electronic transfer and print off a copy of it and put it in the card. Bear in mind however that the bank closures over Christmas may also delay an inter bank transfer
 
I think some banks charge a fee for writing and /or depositing a cheque. Its a nominal amount but why give it to them.
Why not make the 'big reveal' a mocked up cheque and then do the transfer online with them there on the day.
That will be more secure and cost effective and less hassle for the person that needs to go into a bank, queue up etc to deposit it.
 
My parents have always used Prize Bonds for this. They're irrevocable, gives you something to put in the card and no worrying about the cheque not being lodged etc. Probably only suitable if you think the recipient is going to keep the money as savings for a while rather than needing to spend it quickly.
 
Putting myself in position of your son or daughter some lovely words a card along with "The transfer is already done and set for xx date" would actually be even more appreciated than the lovely thought of a cheque. A cheque might feel nice for you but I am sure they will be even more grateful to receive the money without that hassle of paying it in. Cheques are pure hassle - I probably receive 1 every two years - not often enough that the places and methods of cashing in haven't changed since last time I did it - and I then have to visit somewhere I don't need to visit and pay it in.
Life for many is busy enough with Christmas, work, children or whatever else they have on - you will demonstrate good understanding of this later on when you say to him or her "I did think of giving you a cheque but I thought I'd save you the time and hassle of paying it in........"
 
I'm thinking of the Friends esposide where Chandler gave everyone a card saying money was donated to charity.

I'd do an EFT and give a card. If I was getting a €3k gift, I don't think I'd mind what way it landed into my account.
 
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