Jobseeker’s Allowance and family money gift.

Ellio23

New Member
Messages
4
Hi there,

Just found out that a property is being sold by a family member and they wanted to give another family member (their child - adult over 30) some money from the sale, around 100k.

The child is currently receiving Jobseeker’s Allowance and wanted to know how or if this will affect their payment as the gift is from a parent or should they decline it until later in life. They are really struggling at the moment but are worried to lose their payment, as it will affect them day to day. They would like to save the money for a future mortgage down payment or emergency fund.

The house being sold is not their family home. It was an additional property the family owned. Any advice appreciated. They asked me to post to protect privacy.

Thanks in advance for any advice or suggestions.
 

NoRegretsCoyote

Registered User
Messages
4,307
The child is currently receiving Jobseeker’s Allowance and wanted to know how or if this will affect their payment as the gift is from a parent or should they decline it until later in life.
Any cash savings over €20k will impact their JA entitlement. €100k in cash is assessed as the equivalent of weekly income of €270, see here. This would wipe out the child's JA entitlement entirely.

My advice would be for the parent to hold on to the cash until the point at which the child actually plans to need it. The €100k gift will also impact lifetime CAT tax-free threshold currently €335k.


Some kind of trust may also be an option, other posters may be able to advise.
 

Ellio23

New Member
Messages
4
Any cash savings over €20k will impact their JA entitlement. €100k in cash is assessed as the equivalent of weekly income of €270, see here. This would wipe out the child's JA entitlement entirely.

My advice would be for the parent to hold on to the cash until the point at which the child actually plans to need it. The €100k gift will also impact lifetime CAT tax-free threshold currently €335k.


Some kind of trust may also be an option, other posters may be able to advise.
Thank you, that is really helpful and I appreciate a definite answer and the breakdown. I will pass the info on.
 

NoRegretsCoyote

Registered User
Messages
4,307
I will pass the info on.
As far as I know the Department of Social Protection turns a blind eye to temporary high balances, particularly if they are in something like a solicitor's client account.

So if the child received €100k and used it six weeks later to buy an apartment that shouldn't impact JA entitlement.
 

Ellio23

New Member
Messages
4
As far as I know the Department of Social Protection turns a blind eye to temporary high balances, particularly if they are in something like a solicitor's client account.

So if the child received €100k and used it six weeks later to buy an apartment that shouldn't impact JA entitlement.
Thank you. This could be helpful. Thank you.
 
Top