Gift of money

AryaStark

I am wondering who you contact if you are given a gift of money. I haven't received it yet but it will be over €50,000 in cash. I am on carers allowance... do I have to sign off even though my caring duties will not change? This is from a family member if that makes any difference.

Melendez

This post has been deleted.

AryaStark

Because it is unexpected money and a gift I do not mind paying tax - I still get a lot more cash then I had yesterday.

I would be worried about having to sign off as a carer though... The person I care for needs full time care and will for the foreseeable future. I would be concerned about signing off and then trying to get accepted again... I would also miss the travel pass and the medical card!

Stanford

AryaStark wrote: »

Because it is unexpected money and a gift I do not mind paying tax - I still get a lot more cash then I had yesterday.

I would be worried about having to sign off as a carer though... The person I care for needs full time care and will for the foreseeable future. I would be concerned about signing off and then trying to get accepted again... I would also miss the travel pass and the medical card!

You have no problem handing 1/3 of the gift to Revenue?

AryaStark

Stanford wrote: »

You have no problem handing 1/3 of the gift to Revenue?

No I don't!
I will still have 2/3 of the money for nothing. I don't want to pay it but if its the law and the way it works then fair enough. Its more the future I am thinking about at it won't last all that long!

Stanford

AryaStark wrote: »

No I don't!
I will still have 2/3 of the money for nothing. I don't want to pay it but if its the law and the way it works then fair enough. Its more the future I am thinking about at it won't last all that long!

Thats your choice but please do look at the consequences of possibly losing your medical card and other benefits that go with it.

Spook_ie

Stanford wrote: »

Thats your choice but please do look at the consequences of possibly losing your medical card and other benefits that go with it.

Consult professional advice, because if you get caught not revealing income to the revenue, SW etc. expect to lose your carers allowance, travel passes and possibly more.

AryaStark

Stanford wrote: »

Thats your choice but please do look at the consequences of possibly losing your medical card and other benefits that go with it.

This is my only worry. If I was to loose the benefits then I will not accept the full amount and see how I can benefit without loosing my benefits!!! As in I can use money from a fund without it ever being given to me.

I am guessing that someone can pay off my loans (i.e car loan, credit union) etc and buy some items (i.e new I MAC and laptop etc) as gifts and it doesn't effect payments.

Stanford

AryaStark wrote: »

This is my only worry. If I was to loose the benefits then I will not accept the full amount and see how I can benefit without loosing my benefits!!! As in I can use money from a fund without it ever being given to me.

I am guessing that someone can pay off my loans (i.e car loan, credit union) etc and buy some items (i.e new I MAC and laptop etc) as gifts and it doesn't effect payments.

As has been said there are ways of receiving the benefit of the money without receiving cash, get professional advice, remember if you disclose the gift then Revenue may well want to know the Donor and that might have implication for them

AryaStark

Stanford wrote: »

As has been said there are ways of receiving the benefit of the money without receiving cash, get professional advice, remember if you disclose the gift then Revenue may well want to know the Donor and that might have implication for them

The donor is not from Ireland. They have received a much larger amount of money and will be paying the correct tax. I would also pay the correct tax. There is no wish to avoid paying tax. My only issue is with the carers.

The person I care for will also receive money and benefit from the money to come. She is on disability allowance and might have to sign off.. I am assuming that just because the person I am caring for signs off doesn't mean I have to stop receiving the carers allowance. My caring duties will not change at all.

I had hoped someone on here might have some experience of receiving cash and still getting the allowance. I will be getting professional advice and so will the donor!

Stanford

I don't think anyone here can give you advice with so many unknowns to be answered, I suggest you proceed with getting good financial taxation advice

Spook_ie

AryaStark wrote: »

The donor is not from Ireland. They have received a much larger amount of money and will be paying the correct tax. I would also pay the correct tax. There is no wish to avoid paying tax. My only issue is with the carers.

The person I care for will also receive money and benefit from the money to come. She is on disability allowance and might have to sign off.. I am assuming that just because the person I am caring for signs off doesn't mean I have to stop receiving the carers allowance. My caring duties will not change at all.

I had hoped someone on here might have some experience of receiving cash and still getting the allowance. I will be getting professional advice and so will the donor!

You might also need to consider the tax implications if they are domiciled other than Ireland though as I understand it for you to be a carer they would need to be in Ireland with you.

AryaStark

Spook_ie wrote: »

You might also need to consider the tax implications if they are domiciled other than Ireland though as I understand it for you to be a carer they would need to be in Ireland with you.

The person I care for lives with me and that will not change.

The person (family member) who has come into a considerable amount of money if living abroad and that will not change.

Stanford

The key issue here which the OP doesn't seem to want to deal with is the familial relationship between him and the Donor

AryaStark

Stanford wrote: »

The key issue here which the OP doesn't seem to want to deal with is the familial relationship between him and the Donor

It is my brother! It is not a secret but I didn't know it mattered to the advice. The person I care for is my Mother!

Stanford

AryaStark wrote: »

It is my brother! It is not a secret but I didn't know it mattered to the advice. The person I care for is my Mother!

It matters greatly, a cash gift from your brother has a tax free threshold of €32500 with the balance taxed at 33%

AryaStark

Stanford wrote: »

It matters greatly, a cash gift from your brother has a tax free threshold of €32500 with the balance taxed at 33%

Ok great, Thanks! I will be going for the professional advice!

Stanford

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/index.aspx

Stanford

See attached

BorneTobyWilde

Galways races on soon, you should go, come back and deposit it in bank with a great story of how you won it at races, job done lol

AryaStark

BorneTobyWilde wrote: »

Galways races on soon, you should go, come back and deposit it in bank with a great story of how you won it at races, job done lol

I could also just keep it under the mattress and tell nobody!!! Only joking but I do know that 50,000 won't be long being spent!!!

looksee

Congratulations, I hope it brings you pleasure and some peace of mind for the future.

kathleen37

Good for you!

Definitely get some professional advice though. It could be that your brother could gift you, and your Mum, in smaller amounts over several years so it wouldn't impact on either of your benefits.

You would need to know each years tax implications relating to gifts (which I believe have been posted above) as well as savings limits on receiving benefit.

I have no idea whether the cash, if it's spent quickly, gets classed as savings?

lulu1

AryaStark wrote: »

The donor is not from Ireland. They have received a much larger amount of money and will be paying the correct tax. I would also pay the correct tax. There is no wish to avoid paying tax. My only issue is with the carers.

The person I care for will also receive money and benefit from the money to come. She is on disability allowance and might have to sign off.. I am assuming that just because the person I am caring for signs off doesn't mean I have to stop receiving the carers allowance. My caring duties will not change at all.

I had hoped someone on here might have some experience of receiving cash and still getting the allowance. I will be getting professional advice and so will the donor!

A person on disability allowence is allowed 50thousand e savingd without it affecting her allowence

AryaStark

Thanks for all the advice :-) We will be setting up an appointment with a financial advisor.

BorneTobyWilde

AryaStark wrote: »

Thanks for all the advice :-) We will be setting up an appointment with a financial advisor.

Mr Mattress is good I hear .

FurBabyMomma

If your brother can go the €3000 gift per year route for at least some of it, that might suit you OP:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/small-gift-exemption/index.aspx

tricky D

As per previous post first thing is to get a €3k (annual) gift which is tax free. Then you end up getting about €43.16k after tax if you take the full lump sum. For your Med Card the threshold for a single person is €36k so you need to do something about that as you are €7k over. So you need to structure the payments so that you have less than 36k in savings, investments and capital at any moment. Assuming you have no savings, you would want to get under 36k in a first tranche leaving 14k to come which will be just under 10k after tax. So to legally stay within the med card threshold, you need to spend that 10k on something that doesn't get means assessed before getting the second tranche.

Edit: Also note that your payment will be reduced due to additional means above 20k, eg if you maintain your savings at say 35k, you will lose €15/w in payment.

As ever, the standard disclaimer applies ie. the above probably might not be accurate so get proper professional advice over advice from the internet.

wildwillow

Perhaps get 3K gifted to your mother as well and then she can pay off some of your loans. Or if your brother could pay for some expenses for your mother which you usually cover?
Not strictly by the book and you need to know how it affects any payments she gets. You do need good advice from tax and allowances point of view.
But enjoy it whatever you are left with. Being a carer is a difficult job so be nice to yourself.

looksee

Mod: An interesting and useful discussion, but let's keep it strictly legal (as requested by the OP and required by Boards rules).

kathleen37

It would also be worth asking your financial adviser when you speak to them, what impact your brother paying off loans/credit cards of yours/ your Mum's direct?

blazard

AryaStark wrote: »

I am wondering who you contact if you are given a gift of money. I haven't received it yet but it will be over €50,000 in cash. I am on carers allowance... do I have to sign off even though my caring duties will not change? This is from a family member if that makes any difference.

go the official route


even if u have to pay tax, its a plus.