My mil is gifting €3,000 to each of her grandchildren this month and has done for the past number of years. This year my husband and I are gifting €3,000 each to each of our two children. That means that in 2014 our two children will receive €9,000 each which will be tax free. My brother is now keen to start doing the same for all his nieces and nephews. If he does, then next year my two children will receive €12,000 each tax free.
It is going into further education savings for them both! But the accounts are in their own names and the payments made by their grandmother are cheques in their own names and from their dad and I it is by online bank transfer to their own bank accounts.
I still am more than happy that the Revenue are satisfied that this money is not liable for any tax and will not be an issue when they come to inherit from us.