3000 pa gift to children

phoenix53

Registered User
Messages
9
Hi

Is the period this gift can be made to children tax free, Jan to Dec each year?

Could you give 3000 on 31 Dec one year and a further 3000 on 1st Jan of the new year?

Do you have to have written proof that this is a tax exempt gift or is that necessary?

Thanks
 

Fergal19

Registered User
Messages
50
yeah its an annual gift per calendar year. Mom and Dad can't both make a gift so in essence 6k can be made to each child each year. It can add up to a substantial amount over time.

Its no harm to document it to avoid any future discrepancy.
 

PencilPlate

New Member
Messages
2
Does it matter how the funds are transferred? For example, can same one of the two parents make two separate transactions of 3K during the year?
 

Feemar5

Frequent Poster
Messages
253
Only 3K is allowed so if same person does it twice I don't think that would be allowed. However, if you are transferring from a joint parents account it should be ok. This means that the receiver take a gift from several people in the same calendar year and the first €3,000 from each disponer is exempt from CAT.
 

The Oggster

Frequent Poster
Messages
56
I was going to start a new thread but this is recent so I'll ask here.

How do you set up an account for the child? As far as I know they have to be the beneficiary so the account has to be in their name and the parents won't have access.

Has anyone done this? Is there an example of an account or fund that I can read up on?
 

RedOnion

Frequent Poster
Messages
3,132
@The Oggster
I'm pretty sure that any of the life companies that do a regular savings product will do it under a bare trust. It's opened in your name, and a second document creates a trust in benefit of the child(ren).
Standard Life market such a product, and I know New Ireland definitely have one.

Just something to watch out - the fees can be high, but some reduce significantly if you put in a lump sum to open it.

Legally, once in place the money belongs to the children and it cannot be reversed.
 

RedOnion

Frequent Poster
Messages
3,132
Here's a previous thread with a bit more info:
 

The Oggster

Frequent Poster
Messages
56
@The Oggster
I'm pretty sure that any of the life companies that do a regular savings product will do it under a bare trust. It's opened in your name, and a second document creates a trust in benefit of the child(ren).
Standard Life market such a product, and I know New Ireland definitely have one.

Just something to watch out - the fees can be high, but some reduce significantly if you put in a lump sum to open it.

Legally, once in place the money belongs to the children and it cannot be reversed.
Doing some more reading and I think you can keep it going past the age of 18, if the beneficiary agrees and signs a document to this affect? I'm sure we all hope our kids will be sensible enough and we could convince them to leave the money until they're old enough but if they want the money at 18, is there nothing you can do to stop it?
 

outsomnia

New Member
Messages
6
Just to mention that the 3k gift exemption per calendar year does not only apply from parent to child. Anyone can make a gift of 3k per annum to anyone tax free.
 
Top