How would a person make a substantial anonymous gift to someone?

Spanish Eyes

No, I didn't win the Lotto.

But I am curious. I suppose the donor would engage a solicitor, pay the money to him/her, who in turn would pay it to the recipient?

Is this correct.

Miaireland

I am not how it would work to be boneat with all the money laudering laws etc.

Spanish Eyes

Miaireland wrote: »

I am not how it would work to be boneat with all the money laudering laws etc.

Yes, was thinking that. But what about all those anonymous donors to various good causes, such as children who need medical care abroad, or the likes.

Maybe someone knows who they are!

Fred Swanson

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Casshern88

Spanish Eyes wrote: »

No, I didn't win the Lotto.

But I am curious. I suppose the donor would engage a solicitor, pay the money to him/her, who in turn would pay it to the recipient?

Is this correct.

No need to complicate matters , i'll just send you on my bank details. :pac:

Victor

If they are unemployed / underemployed, offer them a job.

Fred Swanson wrote: »

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This may cause undue worry.

Victor

Victor wrote: »

If they are unemployed / underemployed, offer them a job.This may cause undue worry.

Bring on the undue worry I say.

the_syco

Miaireland wrote: »

I am not how it would work to be boneat with all the money laudering laws etc.

I'd imagine there's a difference between giving the anonymous donation when you tell the Revenue, as opposed to giving someone a large sum of money to someone, and saying nought.

Acara

R u for real. The recipient would be liable for gift tax or face criminal charges if found out and you (or your solicitor) would need to make a full disclosure of same to Revenue. This is seen as a form of income and of course is liable to quite a high rate of tax.

Peregrinus

Acara wrote: »

R u for real. The recipient would be liable for gift tax or face criminal charges if found out and you (or your solicitor) would need to make a full disclosure of same to Revenue. This is seen as a form of income and of course is liable to quite a high rate of tax.

The tax problem doesn't arise in relation to donations to charity, of course.

If you're donating to an individual, it's not "seen as a form of income". It's seen as a gift, and it's liable to gift tax.

The amount of gift tax payable depends on the relationship between the donor and the donee, but if the donor is unknown to the donee the donee can deal with the matter by reporting the gift and having the tax assessed on the basis that the donor is unrelated. In this scenario, you're only paying avoidable tax if in fact the donor is related to the donee, but the donee doesn't know this.

So the moral is: don't make anonymous donations to your son/daughter/parent/brother/sister/nephew/niece/grandchild.

JoeyPeeps

It depends how much you're talking about.

johnnyskeleton

Victor wrote: »

This may cause undue worry.

Include a note saying "dont worry this money is 100% legit as a present" to allay their concerns?

Victor

johnnyskeleton wrote: »

Include a note saying "dont worry this money is 100% legit as a present" to allay their concerns?

Well, it beats a drug dealer coming looking for his money that he had to stash.

CIARAN_BOYLE

johnnyskeleton wrote: »

Victor wrote: »

This may cause undue worry.

Include a note saying "dont worry this money is 100% legit as a present" to allay their concerns?

This is why the OP suggested giving the money to a solicitor who does a solicitors letter saying that. You would of course have to explain to the solicitor where the money had come from for AML purposes.

seamus

johnnyskeleton wrote: »

Include a note saying "dont worry this money is 100% legit as a present" to allay their concerns?

I know you've implied it, but a proper personal note that illustrates that you do know the recipient well and you're not someone who's going to come looking for a "favour" at a later stage, is probably necessary.

Otherwise you can easily agonise over whether someone is going to arrive at the door looking for something in a weeks' time.

There is also a scam where someone "stashes" something, asks for you to look after it, but then later makes it "disappear" and then threatens you for money. Never heard of it involving money stuffed through a letterbox though

Victor

CIARAN_BOYLE wrote: »

This is why the OP suggested giving the money to a solicitor who does a solicitors letter saying that. You would of course have to explain to the solicitor where the money had come from for AML purposes.

I was replying to:

Fred Swanson wrote: »

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ZeroThreat

you can transfer up to €3000 to an individual annually without the recipient incurring capital acquisition tax.


Edit : Sorry, should have said CAT, not CGT.

Spanish Eyes

A relative wants to give a sum to a local child for treatment abroad, but she does not want to be known.

I am wary, no offence intended to genuine cases, but really, no one actually knows what this money is spent on.

Just a bit of a dilemma with an elderly person who's heart is in the right place.

Hence the solicitor route as a back up, rather than her just writing a cheque or something. Although that is probably no "insurance" either as to what the donation is spent on I suppose. But if given with the right intentions does it matter?

I suspect a donation like this would be tax free under charitable donations.

Really just trying to find an anonymous route for her. Although I have misgivings to be perfectly honest.

Fred Swanson

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seamus

The anonymous route in this case may simply be an agent whose name is known, but makes it clear that they're acting on behalf an anonymous donor.

If proper use of the money is to be assured, then this agent should manage the disbursement of the funds, preferably directly to service providers as much as possible. Disbursement directly to the family or to a 3rd party charity can of course end up being used wrong. Whether this is a risk the donor is willing to take is up to them.

A solicitor can do this, and certainly has the resources and skills to do it, but of course will charge for their services. One big thing you do gain with a solicitor is effectively a guarantee of anonymity. They are legally and professionally bound to protect the identity of their client, with the risk of losing their ability to practice if they don't.

A non-professional does not have the same sword hanging over them and might let names slip over a few pints.