inheritance to a minor

pataidod

Is the parents allowed to use the inheritance giving to their children anyway they like?
Example: grand parent give 15k to their grand child, age 6. Can the parent spend these funds any way they see fit? To help purchase a capital item like a car, house?

evosteo

pataidod wrote: »

Is the parents allowed to use the inheritance giving to their children anyway they like?
Example: grand parent give 15k to their grand child, age 6. Can the parent spend these funds any way they see fit? To help purchase a capital item like a car, house?

its should be put into a guaranteed savings account (or something similar) till the child turns 18 or even 21. then it will be up to themselves to decide what they would like to do with it.

Fiskar

pataidod wrote: »

Is the parents allowed to use the inheritance giving to their children anyway they like?
Example: grand parent give 15k to their grand child, age 6. Can the parent spend these funds any way they see fit? To help purchase a capital item like a car, house?

It is a gift from grand parent to gran child, it should go into an account to fund their future education. The lifetime limit is 15k however there is a 3 k annual exemption.

pataidod

Fiskar wrote: »

It is a gift from grand parent to gran child, it should go into an account to fund their future education. The lifetime limit is 15k however there is a 3 k annual exemption.

Thanks, is it written as a rule from revenue that it needs to be educational? Or can it be used to pay for non educational matters relating to the child.

pataidod

Fiskar wrote: »

It is a gift from grand parent to gran child, it should go into an account to fund their future education. The lifetime limit is 15k however there is a 3 k annual exemption.

Thanks, is it written as a rule from revenue that it needs to be educational? Or can it be used to pay for non educational matters relating to the child.
And can the money be used up at any stage? Like straight away.

Dial Hard

Fiskar wrote:

It is a gift from grand parent to gran child, it should go into an account to fund their future education. The lifetime limit is 15k however there is a 3 k annual exemption.

I don't think that's what the OP asking, though. Sounds like they want to be sure the parents can't access a financial gift made to a child. Which I don't know.

CramCycle

Dial Hard wrote: »

I don't think that's what the OP asking, though. Sounds like they want to be sure the parents can't access a financial gift made to a child. Which I don't know.

Or if they can get around tax by giving the money to the child

Fiskar

pataidod wrote: »

Thanks, is it written as a rule from revenue that it needs to be educational? Or can it be used to pay for non educational matters relating to the child.
And can the money be used up at any stage? Like straight away.

The rule concerns granparent to granchild in regard to the amount. If the parent gave to the child directly i.e yourself, the limit is €280,000

pataidod

CramCycle wrote: »

Or if they can get around tax by giving the money to the child

Exactly, can revenue intervene if l, the guardian of the 6 yr use the funds now when they are needed, instead of putting them away till they are 18 or 21 etc?

CramCycle

pataidod wrote: »

Exactly, can revenue intervene if l, the guardian of the 6 yr use the funds now when they are needed, instead of putting them away till they are 18 or 21 etc?

Probably not but be warned,

needed for you = tax fraud
needed for the child = fair enough

If revenue determined that the gift was actually for you and not the child, I imagine they would not look kindly on it. Minimum fine + owed tax, possibly worse. Not a tax expert though but that would be my understanding.

Do you need it for you or the child straight away?

friendlybee

If a grandparent decided to give your child 15k it is his alone and should be invested for future education/trust fund and set up with the solicitor. Or written in a will is the same thing.
If you decide to use your child's money for something you need that is considered 'stealing'. If will already set up that's considered fraud and you would be fined

PeterHands

pataidod wrote: »

Is the parents allowed to use the inheritance giving to their children anyway they like?
Example: grand parent give 15k to their grand child, age 6. Can the parent spend these funds any way they see fit? To help purchase a capital item like a car, house?

If the money to be gifted is above a certain limit it would be wise to give the money to the daughter or son of the grandparent as the amount taken by the government is more and more the future away the person is in terms of relation.