Cash Gift to Parents

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Passenger57

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Hi,

I have a question on logistics of gifting cash to my parents.

If my current understanding is correct my parents fall into Group B for CAT threshold which is 32500 Euro per parent?

My parents have a joint bank account, can I transfer 65000 Euro to this account with both of them claiming their respective life time gift exemption?

Is there any difference on doing the above or is it easier from a reporting perspective to transfer the respective amounts into individual bank accounts?

Appreciate any advice/guidance on the above
 
Hi,

You can gift up to €71,000, i.e. €32,500 x 2 plus €3,000 x 2.

And if you’re married, for example, you and your wife could gift €32,500 x 2 plus €16,250 x 2 plus €6,000 x 2.

In terms of the mechanics of it, a transfer into their joint account is fine.

Gordon
 
Have you considered loaning the money to them, you could charge them interest and gift that back to them.

At a rate of 1.5% you could transfer up to €200k each with no tax implications. If you were to receive money from their estate after their death the first part would be a repayment of the loan, and not use your inheritance exemption.
 
cremeegg said:
Have you considered loaning the money to them, you could charge them interest and gift that back to them.

At a rate of 1.5% you could transfer up to €200k each with no tax implications. If you were to receive money from their estate after their death the first part would be a repayment of the loan, and not use your inheritance exemption.
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Would that be legal ? Or a way of avoiding tax ?
 
Thanks guys that is really useful info and it didn't occur to me I could leverage gift from wife as well!

@cremeegg I considered the loan option originally but I am happy with the gift option especially with the previously unconsidered idea of gifting from my wife as well if necessary. Its to cover off the tail end of a Celtic Tiger era re-mortgage, I am in a privileged position of having the money and I am happy to see them in a more comfortable position coming into retirement then they would have been otherwise.
 
If it's not too much, just give it to them.

People on this site worry an awful lot on breaching the inheritance tax limits. In reality, people (usually parents to kids) give away money all the time and don't report anything to the revenue. I am not a tax advisor but from what I have heard, the revenue are more interested in the systematic avoidance of inheritance tax than a son helping out his parents to pay off their mortgage.
 
Just make sure it all goes from joint account to joint account.

You have €109,500 of headroom to play around with which is a lot more than you had thought.
 
Just curious, does the reverse work also, ie. Can one parent gift 325,000€ and the other parent the same to a son/daughter?
 
horse7 said:
Just curious, does the reverse work also, ie. Can one parent gift 325,000€ and the other parent the same to a son/daughter?
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No, and that's not what was said.

If a single parent had 2 children, they could gift each child 325k.

The scenario above is that there are 2 parents, so each parent has their own lifetime limit.
 
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