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Gifting Money Query

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  • 05-02-2024 9:00pm
    #1
    London123
    Registered Users Posts: 1 ✭


    Hi there,

    I have query on gifting money in Ireland.

    If I lend to either my son or daughter, via an interest free loan with written agreement / contract, when I pass away is this loan considered as part of the inheritance threshold?

    I would like to gift to one of my children via an interest free loan to help them with property, but I do not wish ultimately end up leaving one child with more or less inheritance than the other.

    Ideally whatever I lend to one child, if more than the other would be considered when all other remaining assets are spilt. Such that both receive equally. Is this assumption correct?

    Thanks,



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    #2
    DFB-D
    Registered Users Posts: 337 ✭✭DFB-D


    If you are comparing to the UK system of inheritance tax (assumption based on your username) , IRE has a different system (recipient pays CAT) , where gifts are taxed (including interest forgone on loans) & subject to annual and lifetime thresholds.

    Worth getting a IRE tax advisor especially if you are UK based.

    The distribution of assets on death will be ideally completed on the basis of a will if you want special provisions. But briefly, outstanding loans could be collected as part of your estate.

    In short, you need to structure this differently for tax and in your will.



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    #3
    Lenar3556
    Registered Users Posts: 1,366 ✭✭✭Lenar3556


    https://www.boards.ie/discussion/2058334834/gifting-money-query

    Yes, it would count towards the lifetime group A threshold.

    The requirement would be on your son/daughter to recognise that they have received it and pay any tax due on total amounts received from your estate over €335k

    (given the often considerable passage of time between loans being advanced being made between parents and children and the distribution of estates when a parent passes, it could conceivably be difficult to establish that previous gifts have been made to a child in question. )



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