Relative gifting inheritance?

S

suzie

Registered User
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Hi all,

I have an aunt who wishes to gift inheritance to my children (minors) and partner. From reading online am I right in assuming this gifting will fall into Group C? In transferring the gift I assume the beneficiary must be named on the draft and not my own name?

Thanks in advance
S.
 
Yes - that is correct. Only a gift to you would fall under group B - your partner/children are treated no differently than any one not related at all to your aunt i.e. group C. The beneficiaries would obviously be named on the draft - if you aren't you wont be.

Obviously given the low group C thresholds there could be a large CAT bill to pay - has this been factored in?

Group A: A son or daughter of the person giving the gift or inheritance (the disponer).

Group B: A parent, brother, sister, niece, nephew or grandchild of the disponer.

Group C: People with a relationship to the disponer not already covered in Groups A or B.
 
Yes, trying to manage the CAT bill with the various group thresholds. Cant predict the future but cant really see where gifting may come from in the future which would fall into Group C. ie I'd say its the group which gets least utilised/managed...

Thanks
S.
 
As it is a gift you will also have a €3000 allowance that each person has per calender year.
 
So if somebody received say for example a gift of €6K within Group C, the 1st €3K can be the yearly allowance and the remaining €3K goes towards the group threshold?

Thanks
S.
 
Here is Revenue's explanation:

23.2 Exemption of small gifts
CATCA 2003 S69 provides an exemption for gifts of up to €3,000
taken by a donee from any disponer in a calendar year. Any gifts
within this limit are not taken into account in computing tax and are
not included in any future aggregation. Where a gift exceeds this limit
only the excess will be taken into account for the purposes of
calculating CAT. This small gift exemption applies only to gifts and
not to inheritances.
 
I am sure it has been thought of already but is there any legally legitimate mechanism whereby the benefit can be paid to the beneficiaries in annual instalments at the threshold level e.g. create a trust for each of the children which provides that each will receive €3,000 per annum.

I suppose that any such arrangement would also be subject to aggregation ?
 
You can for example give a gift each year on the 1st January of €3000 and it does not impact on any allowances in the future.
 
If one's spouse receives a gift, can the non-benefiting partner still utilise the annual gift exemption to a relative who also received a gift from the original disponer? Its not clear from any examples I've seen illustrating gift splitting?

Thanks
S.
 
suzie said:
If one's spouse receives a gift, can the non-benefiting partner still utilise the annual gift exemption to a relative who also received a gift from the original disponer? Its not clear from any examples I've seen illustrating gift splitting?

Thanks
S.
Click to expand...

You mean like this:
Car8yAy.png

... where B and C are spouses and (at least) B and D are related?

In theory these could be unrelated arms-length transactions. But you'd have a hard time convincing Revenue (or anyone else) that D wasn't the intended beneficiary of both of A's donations, and that's what matters in interpreting the rules.
 
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