What if the government freezes deposits or imposes a levy on savings?

B

billdavies63

Registered User
Messages
11
I have 200K on deposit in Ulster Bank. I have a son and daughter in Germany. In the event that our government targets my 200k savings, could I legally escape loss by making a gift of the full amount to my son and daughter who would then open a savings account in their name in Germany. I would not then be liable to declare 200k savings. (Of course I would have to trust my children to return the capital when things settle down!)
 
There is no problem giving a gift of 200k to your children, and they lodging it in the country they live in. What you are suggesting :
((Of course I would have to trust my children to return the capital when things settle down!)
means it is NOT a gift, but a Loan, and the money is still legally yours. This puts a different slant on things.!
 

No one can answer this question, as we have no idea how such a situation would come about, what rules would apply and so on. However I would expect that the government would be smart enough to know that people will try this kind of stunt and make provision for it. 200K just can't disappear out of a bank account without leaving a trace you know. Also your kids would have to produce documentation on the German side to show that it was not a money laundering exercise...

Jim.
 

The issue is when you transfer the money.

If the govt act while you have savings in UB you will be affected by whatever they do.

To avoid this you need to transfer the money before the govt act. They will not announce measures in advance so that you can set your affairs in order.

It is not illegal or immoral to give or loan money to your children, although there may be tax implications.

If the money is in your childrens names (I assume they are adults) in a German bank and they are resident in Germany, I cannot see how it could be subject to Irish govt measures.

To me it is a no brainer. For another opinion listen to David McWilliam on Pat Kenny on Monday. This is mainstream not just for worrywarts on discussion boards.
 
Jim2007 said:
Also your kids would have to produce documentation on the German side to show that it was not a money laundering exercise...

Jim.
Click to expand...

If you produce a bank draft or do a bank transfer then I would assume that the German Bank would expect that the issuing bank has dealt with the money laundering issue before it got to them.
 
If you have children in Germany then why not open an account in your own name the next time you visit? You could open it with a small amount of cash and if things get worse here transfer some more.
 
bryanod said:
German?

Returning the money?
Click to expand...

As far as I know German thresholds are higher than ours ( why am I not surprised). Something like €400K v $332K.

Not sure about the money being returned. Probably times limits for deciding if it is a gift refused or returned. Seek professional advice
 
You must log in or register to reply here.
Menu
Log in
Register