Brendan Burgess
Founder
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I have no practical experience of this. So please correct any errors or add any bits of information.
1) Both parents can give €3,000 each to each of their children each year without it impacting Capital Acquisitions Tax thresholds.
(While this is the most common arrangement, it does not have to be parent to child, it can be anyone to anyone.)
2) If they formally set up a bare trust, they can manage the money on behalf of their child and the child can't access it until the age of 18. But at the age of 18, the child can demand the proceeds of the trust and can spend it as they see fit.
3) Grandparents, or anyone else, can also contribute to the trust fund.
4) The child is the beneficiary
5) The parents would usually be the Trustees
6) Who ever contributes to the fund are Settlors
7) The simplest is to set it up via a fund with Zurich Life or some other funds company, but these are subject to 41% exit tax.
8) The most tax efficient is to buy shares directly via a stockbroker as the dividends and capital gains will be taxed in the child's name and they will benefit from the usual tax credits and annual CGT allowance
1) Both parents can give €3,000 each to each of their children each year without it impacting Capital Acquisitions Tax thresholds.
(While this is the most common arrangement, it does not have to be parent to child, it can be anyone to anyone.)
2) If they formally set up a bare trust, they can manage the money on behalf of their child and the child can't access it until the age of 18. But at the age of 18, the child can demand the proceeds of the trust and can spend it as they see fit.
3) Grandparents, or anyone else, can also contribute to the trust fund.
4) The child is the beneficiary
5) The parents would usually be the Trustees
6) Who ever contributes to the fund are Settlors
7) The simplest is to set it up via a fund with Zurich Life or some other funds company, but these are subject to 41% exit tax.
8) The most tax efficient is to buy shares directly via a stockbroker as the dividends and capital gains will be taxed in the child's name and they will benefit from the usual tax credits and annual CGT allowance
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