Very good article. Very informative.
My own position. Assume the annual exemption is wise from a tax perspective into the future.
I want to start the annual gift exemption for 2 of my children. I am not interested in a bare trust etc but have opened 2 online bank accounts each in their respective names to encourage them to save into this when given gifts etc I also intend to contribute annually to these account. I understand it is their money in their name, but am happy to educate them about the purpose of the savings and trust them. My intention would be at 18 for them to set up an investment account with an online broker with low fees and I may contribute with them into this for years to come and encourage them to contribute to it also to build a fund into the future for cars/deposit for house etc.
I suppose I have 2 questions on this.
1. Is having the accounts in their names sufficient proof for revenue that money is going to them and is within and the annual threshold etc (3000 per calender year)?
and
2. If I contribute the full annual amount for example (or above 80% of annual amount), could I also submit an IT38 from my ROS with their PPSN as beneficiary to prove within threshold annually and have a record of annual gift?
Thanks in advance
My own position. Assume the annual exemption is wise from a tax perspective into the future.
I want to start the annual gift exemption for 2 of my children. I am not interested in a bare trust etc but have opened 2 online bank accounts each in their respective names to encourage them to save into this when given gifts etc I also intend to contribute annually to these account. I understand it is their money in their name, but am happy to educate them about the purpose of the savings and trust them. My intention would be at 18 for them to set up an investment account with an online broker with low fees and I may contribute with them into this for years to come and encourage them to contribute to it also to build a fund into the future for cars/deposit for house etc.
I suppose I have 2 questions on this.
1. Is having the accounts in their names sufficient proof for revenue that money is going to them and is within and the annual threshold etc (3000 per calender year)?
and
2. If I contribute the full annual amount for example (or above 80% of annual amount), could I also submit an IT38 from my ROS with their PPSN as beneficiary to prove within threshold annually and have a record of annual gift?
Thanks in advance