Advice needed re College Fund for my 3 grandchildren.

V

Vic76

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Hi,
I would like to start a fund to pay towards college fees for my 3 grand children. I am thinking of saving approx €100 each per month for them.
Are there any tax implications that I should consider? Are there any such funds that I can use or should I just open up regular savings accounts for them?
thanks
Vic
 
I put €200 into prize bonds each month by direct debit towards my child's college fund but I am sure there are other options which will give a guaranteed return.
 
@Vic76 lets say you put aside to exaggerate - €300k.

You live on and your children live on.

Then if it comes to the date of paying over €100k - there would tax consequences for the children and also you could control the use of the money as it would be a gift.

What might work is using the small exemption each year and a simple trust structure where you can decide the use of the funds - namely education.

This might sound like too much but it depends on how long this goes on for; and do you want the fund to be directed in a certain way; and do you want to minimimse tax.

It may be worth having a conversation with an accountant or solicitor - and the fee should be low.
 
I would try to avoid the expense of employing Accountants on this very small matter.

If you set up a joint bank account with each of your grand children and deposit the monthly gift there, it should be enough to avoid any tax liabilities.
 
@Dr Debt - indeed what I was asking was how much is involved ..
The bank account is not entirely risk free. I think the point that you would be making is 'joint tenancy' and to survivor. If the balance is over the threshold - thats the CAT point.

This isn't that complicated -but it entirely depends on the size and control aspects.
 
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