Small gift exemption / Use of Bare Trusts
Small gifts of up to €3,000 per year can be gifted to family members each per year without gift tax being paid and without affecting the lifetime exemption thresholds of the beneficiary.
Bare trusts are very often used by grandparents (or godparents, uncles, aunts etc) who want to provide for their grandchildren where the children are too young to take the inheritance in their own right.
For example, a bank account or investment fund can be opened up with the grandparents (as trustees) being the signatories on the account. The grandparents can utilise the trust funds to help educate or maintain the child or, alternatively, by continuing to add to the trust until the child is old enough to take the gift at the age of eighteen.
Subject to qualifying conditions
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie