I believe that you have the right idea. The parents still have the option of using up the balance to 310000 as well as 3000 each gift annually but then everything else will be taxed at 33% if given in a will.Brendan if i was to gift son 200k does that not affect future threshold for inheritance of 310k? Are I miss understanding it all. Thanks.
Yes, it does. But deal with the issue now of helping your son buy the house.Brendan if i was to gift son 200k does that not affect future threshold for inheritance of 310k?
Out of curiosity, why would banks require funds of €X from parents to son to be in the form of a gift as distinct from a loan ?Let's say he wants to spend €400k on an apartment.
A lender might give him €100k.
So he is short €200k.
If you give him €200k , the bank will require that it be a gift rather than a loan. While there would be no tax implications of giving a gift of this amount to him, returning a gift could well involve a CAT payment.
Just to explain where this comes from.the parents could, in theory, write-off
circa €11,500 of the outstanding loan on an annual basis