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Fixed Term Deposit Account

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  • 15-12-2012 10:43am
    #1
    RMC10
    Registered Users Posts: 100 ✭✭


    Hi,

    Just looking for some advice / knowledge.

    My father has a decent amount of money in a fixed term deposit account.

    He is very old school and an anxious individual, panics at the sight of a bill through the door. He has as only had to deal with banking/bills etc since my mother died.

    He's convinced the government are after his money now since this last budget and thinks transferring his fixed term account into my name will solve this.

    Apart from DIRT (which he's currently not liable for) is there any other disadvantages to putting into my name?

    Also would there be any implications for me having a large sum of money in my name?

    Thanks in advance for any help!


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    #2
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Things to consider:
    • You are subject to DIRT at 33%. He is not subject to DIRT. Big difference.
    • You might be subject to PRSI at 4% from 1 January 2014. He might not be subject to PRSI.
    • It is generally not a good idea to have ones assets in someone elses name.
    • You might need to pay gift tax if the assets move into your name (open to correction on this point).
    • Maybe you need to try and persuade him the truth that 'the government is after his money' to a lesser extent than yours as he has old age tax exemptions that you dont.
    • His assets in your name might cause inheritance issues.


  • Options
    #3
    RMC10
    Registered Users Posts: 100 ✭✭RMC10


    Fungus wrote: »
    Things to consider:
    • You are subject to DIRT at 33%. He is not subject to DIRT. Big difference.
    • You might be subject to PRSI at 4% from 1 January 2014. He might not be subject to PRSI.
    • It is generally not a good idea to have ones assets in someone elses name.
    • You might need to pay gift tax if the assets move into your name (open to correction on this point).
    • Maybe you need to try and persuade him the truth that 'the government is after his money' to a lesser extent than yours as he has old age tax exemptions that you dont.
    • His assets in your name might cause inheritance issues.


    Thanks for the reply fungus. You've mentioned one or two things I hadn't thought of.

    We are meeting with the branch manager who knows him well enough and we'll to go through the pro's and cons of doing this. Hopefully he'll listen to her more than me!

    Thanks again.


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