Should I leave money to my grandchildren in my will-pitfalls?

G

gledswood

Registered User
Messages
23
I inherited money from my parents and I had to pay over €50k in inheritance tax.

I, in turn gave my own children a gift from this inheritance.

Looking back, it might have been better if my parents had gifted my children direct from their will. I would have inherited less but less inheritance tax would have been paid by me.

I have six grandchildren. Ages 20 down to 3. Mostly aged between 3 and 8.

I have made a will leaving each of them €30k....I am now having second thoughts about this. Should I just do as my parents did and leave everything to my own children and let them in turn look after my grandchildren. More tax will be paid but there may be less problems.

I am not sure that a 20 year old should be inheriting €30k from their grandparents. I have visions of this money being squandered on fast cars etc.

If I give the money to their parents now to be put away for 15 years or so, the tax situation is different.

Any thoughts on this?
 
The “inheritance” only kicks in after you die (you don’t mention your age). Perhaps by then you now 20 year old might have grown out of “fast cars”. But the others may only be approaching that phase .
Perhaps it all comes down to how big your estate will be and how many children you have. Currently children can inherit €335,000 tax free from parents (€32,500 for grandchildren).
You might consider leaving the money “in trust” for grandchildren, but only vesting at say age 25.
 
Trust aside..

Going by your original plan, if I were you I'd give each of the grandchildren as minimum the threshold limit for their group plus the 3K limit small gift for the said year. Anything above those to go their parents (since you are paying same tax anyway). No point of wasting the tax free amount, money is hard to earn and easy to lose. It is better in your grandchildren's hand than the government's. Yes they might squander it away, at least that is their mistake to make but as minimum it benefits them. If their parents brought them up decent, they should be able to understand to spend wisely.

Maybe you can have a chat in advance with their parents and advise them of the plan you have in mind so they can guide the grandchildren or even put in an accompanying letter with your will to say so.

That would be the way I see it.
 
Maybe your children will squander it on fast cars…..
There is literally no point in worrying about that your family will spend their inheritance on once you are gone .

I wish you a long and happy life, maybe you’ll squander some of it on a good retirement
 
You must log in or register to reply here.
Back
Top