Saving for kids, but dont want them to find out until I want them to

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AndroidMan

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I am divorced with two kids in their very early teens.
I have an EBS and BOI account for each child using my own home address and I contribute to each account monthly, summing around 1k pa to each child.

A few questions:
I was planning to raise my contributions to 3000 per year per child as a gift to avoid inheritance tax when I die - my net worth means they would be liable, so am offloading now.
Is a gift still a gift if it is spread over 12 months?

The kids know they have the EBS account but not the BOI account. I intend to hand the EBS account over when they reach maybe 16 and the larger BOI account when 18 or 21, but if they are not responsible at that age, I may hold off.

What if they were to open a BOI account themselves at some point with another address, but same name, DOB, PPS but different address? Will the bank give them the funds in that account as it will obviously be the same person

I am named as the parent on the account but not sure if that carrys much weight when the kid is 18.

As per another recent post, BOI are reducing the interest rate to 0.25% so that seems pointless.

Any other suggestions on where I could place around 2.5k per year in an account in the kids names but where I control it and decide when they will know about it?
 
Did you open the BoI accounts day one with 'one to sign', you, or was it opened 'either to sign', if either then in theory they could get it out if they knew about it or found out.
 
Cant remember to be honest.. Its a few years ago now. But will the bank disclose the account when it is detwemined it is the same person?
 
They could do, if ID presented matches what is on their screen, they might be a bit cautious if they saw it was 'one to sign' but I wouldn't count on it! Check with them the signing terms on account.
 
Sorry, weekend humour, couldn't resist.

I'd also be interested in strategies to effectively transfer wealth, but have the ability for them not to know/access if they are not being responsible
 
The post office 3-5 year bonds seem too be the best return at the min for kids.there is a 6 year plan also where you can lodge each month
 
AndroidMan said:
A few questions:
I was planning to raise my contributions to 3000 per year per child as a gift to avoid inheritance tax when I die - my net worth means they would be liable, so am offloading now.
Is a gift still a gift if it is spread over 12 months?
Click to expand...
AndroidMan said:
Any other suggestions on where I could place around 2.5k per year in an account in the kids names but where I control it and decide when they will know about it?
Click to expand...

Would this still qualify as a gift under the small gift exemption when the donee has no access to the gift? I wouldn’t have thought so and would be something you would need to be mindful off if Revenue were every to question the annual “gifts”, especially where they are not available for use by the donee.
 
Smoneen said:
Would this still qualify as a gift under the small gift exemption when the donee has no access to the gift? I wouldn’t have thought so and would be something you would need to be mindful off if Revenue were every to question the annual “gifts”, especially where they are not available for use by the donee.
Click to expand...

The OP said they would give it too them when they are 16/18 or 21so can't see revenue paying too much interest in it.once it doesn't pass the 3k per year
 
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