Moneymakeover How Should I Invest an Upcoming Inheritance

mustang01 said:
would you have an axample of so something like this or what it’s called?
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In the context of your query and it relating to children aged 18+ they're just called unit liked savings plans. Set the policy up in the children's own name, choose a fund, and direct debit from parent's bank account.

All providers in the market, bar Royal London, have products, with AMCs varying from circa 0.90% to 1.5% pa depending on the type of service you want/need.
 
Mettmo said:
About our E15k investment policy, we set it up in our joint names and it’s in a “cautiously managed” fund, which was a compromise we were both happy with at the time as this was a large portion of our savings then.

Re her pension funds, need to check the exact funds, but believe the majority of them are in mid-risk “Managed” funds. As my wife is only 3 years from retirement we’ll likely move them to lower risk funds soon
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The reason I asked about these was just to get you thinking about their composition. Highly likely that there's circa 40% equities in the cautions fund and 60% in the managed ones, and you're thinking of reducing those. But, you're willing to consider 100% for the investment. If 40% was a compromise, I can't see 100% being a runner.
 
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Key kids. I want you to mind 3k per month for me in broker accounts in your names. So please open the accounts for me and i will lodge 3k in every month. You are not to touch it. I will take care of any tax etc when the time comes.
Roll on 10 years. Remember that account I got you to open for me. Turns out i dont need the money. You can keep it. Happy Christmas.
 
JamieB_ said:
Key kids. I want you to mind 3k per month for me in broker accounts in your names. So please open the accounts for me and i will lodge 3k in every month. You are not to touch it. I will take care of any tax etc when the time comes.
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Then presumably it's not a gift until this happens:
JamieB_ said:
Roll on 10 years. Remember that account I got you to open for me. Turns out i dont need the money. You can keep it. Happy Christmas.
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So the small gift exemption wouldn't apply?
 
JamieB_ said:
Key kids. I want you to mind 3k per month for me in broker accounts in your names. So please open the accounts for me and i will lodge 3k in every month. You are not to touch it. I will take care of any tax etc when the time comes.
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www.rte.ie

New campaign warns students of money mule recruiters

As the college year begins, FraudSMART is launching a campaign warning students to be on alert for money mule recruiters, particularly through social media advertisements.
www.rte.ie www.rte.ie
 
It would be a gift. You just arent telling them its theirs to spend yet. You've put it into their accounts. You arent taking it back. And I dont think your kids have to worry about you using them as a money mule (well in a normal family at least) :)
 
JamieB_ said:
I want you to mind 3k per month for me in broker accounts in your names. So please open the accounts for me and i will lodge 3k in every month. You are not to touch it
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In my eyes a parent wouldn't be dishonest like this to their grown children in a 'normal family'. Looking through your kids' eyes you are asking them to do the exact same thing that the FraudSMART campaign is warning them about.

As you're telling them they can't touch the money, it is not a gift until they're told it's theirs to use as they like, as Clubman has pointed out. So you are using them as money mules for the purposes of tax evasion, unless it is to be declared at that point.
 
Steven Barrett said:
Put it into something like a regular investment plan with a life company. As they are over 18, it will be in their names with you and your wife as the payor. In my experience, adult children do not touch this money., in fact, the general feeling is one of indifference.
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That sounds like a very good idea. I think if we explain the monies are to help them when they're maybe looking to buy a house, they will likely just forget about it for a while, especially if it's in an investment policy.
 
It depends. Some kids might actually pay attention to this and realise that they have a nest egg and spend the rest of their money on what they like - if that is the outcome you expect then fair enough but will they still be short for a deposit when the time comes despite your gift? So even though they are not spending the gift money, they spend their own money that they should also be saving in anticipation of the gift.

Others might disregard it and be diligent in saving and get a lovely surprise when the funds come their way. Only you will know this!
 
Mine would know exactly what I was at, but not touch it because they were not told yet that it was theirs. Most kids are smart enough to know their parents. Money mules :) I think you might be being a bit dramatic there.
 
llgon said:
In my eyes a parent wouldn't be dishonest like this to their grown children in a 'normal family'. Looking through your kids' eyes you are asking them to do the exact same thing that the FraudSMART campaign is warning them about.
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llgon said:
So you are using them as money mules for the purposes of tax evasion, unless it is to be declared at that point.
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Sweet Devine… calm the ham
 
Salvadore said:
Sweet Devine… calm the ham
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Perhaps it was a bit extreme but the fact remains that asking a child to "mind" €3K p.a. (possibly x 2 if both parents contribute) but only actually gifting it years later society certainly means that the small gift exemption cannot be used and the eventual actual gift will eat into their CAT group A exemption threshold.
 
JamieB_ said:
It would be a gift.
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It would not be a gift. You are explicitly saying to them . . .

JamieB_ said:
You are not to touch it.
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That absolutely negates it being a gift.

What you are doing here is setting aside money that you intend to gift to them at a later point . There won't be a gift until you actually give them the money (when you tell them that the money is theirs and they can do what they like with it). When you do that the accumulated value of all that you have put into their accounts, plus the earnings in the accounts, will presumably vastly exceed €3k. A CAT liablity will arise in the usual way.

Fraudsmart is not really the issue here. This is an attempt at good, old-fashioned tax evasion.
 
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ClubMan said:
but only actually gifting it years later society certainly means that the small gift exemption cannot be used and the eventual actual gift will eat into their CAT group A exemption threshold.
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There was a case a few years ago where the parents said they did this for their (adult) child. It included money for communion and confirmation as well as small gift exemptions paid to the parents for the child from aunties and uncles, who were deceased at the time of the case, so couldn't verify! The Revenue won the case.

misemoi said:
Some kids might actually pay attention to this and realise that they have a nest egg and spend the rest of their money on what they like
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That is down to the parent and the child. There is only so much you can do as a parent. If you tell them they need to save some of their salary and be prudent with spending but they spend anyway, there is little you can do. They'll have to learn the hard way.
 
Steven Barrett said:
There was a case a few years ago where the parents said they did this for their (adult) child. It included money for communion and confirmation as well as small gift exemptions paid to the parents for the child from aunties and uncles, who were deceased at the time of the case, so couldn't verify! The Revenue won the case.
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Revenue rules that annual small gift exemption must be actually given and not just "earmarked".

Interesting article in the independent; (https://www.independent.ie/irish-news/man-32-who-received-almost-500k-from-parents-fails-in-tax-battle-with-revenue-despite-communion-money-claims/a845644263.html) I would tend to agree with the ruling here that the small gifts from parents was...
www.askaboutmoney.com
 
But it is given. Dont know how revenue could argue that putting it in the kids bank accounts means anything other than a gift. I have told the kids all their lives not to touch their savings. And I dont think anyone involved is going to be going to revenue and saying "Daddy told me not to touch the money he was putting into my account." I think i'll take my chances with revenue on this one :)
 
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