Money Transfer

Uncle Buckley

Hi all. I wish to transfer €20,000 to each of my two adult children. The source of the money is from a life insurance policy that was paid directly to me. I have my children set up as payees on my bank account. Is it simply a case of logging into my account and transferring them the money? My banking app says my daily transfer limit is more than the €20,000 I wish to send. TIA.

Dunfyy

They have to pay gift tax after 3000 euros
Bank is expensive to transfer money look up money transfer companys

Xtorfx. Or Currencies direct never used them
There are others look up how much the other person gets after hidden fees

Uncle Buckley

Dunfyy wrote: »

They have to pay gift tax after 3000 euros
Bank is expensive to transfer money look up money transfer companys

Xtorfx. Or Currencies direct never used them
There are others look up how much the other person gets after hidden fees

Thanks, I was under the belief my kids would not have to pay tax on the money. I thought they each had an allowance of up €335,000 tax free from money/assets transferred from myself.

Sarn

The bank is not usually expensive to transfer money in the same currency. With PTSB, an in branch Swift transfer is 50c. An online transfer from your own account could cost nothing, depending on if you have fee free banking or not.

Geuze

Uncle Buckley wrote: »

Thanks, I was under the belief my kids would not have to pay tax on the money. I thought they each had an allowance of up €335,000 tax free from money/assets transferred from myself.

Correct.

Well that is a lifetime allowance for all Group A gifts/inheritances.



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

Uncle Buckley

It would seem my children would only have to make a declaration (an IT38) to Revenue if the the sum I was giving them came within 80% of the €335,000 allowance or exceeded the €335,000.

This is the first time I have given my children a significant sum of money but I doubt my assets will ever give them more than €335,000 each (or the remaining €315,000 after this).

As a side question, do Revenue just depend on people being honest with them in declarations when working out how much Capital Acquisitions Tax is liable if assets you leave to your children exceed €335,000?

We are all resident in ireland with irish bank accounts.

dotsman

Not sure if it is just honesty. More fear! If ever a person was audited and it turned out they had not declared, they would face stiff penalties and fines. But, as you already know, they only declare as they approach the limit). Anyway, 20K is relatively tiny in the world of gift/inheritance tax between parents/children. Typically the large amounts are when it comes to actual inheritance (house/farm/business etc).

With regards transferring the money. Its quite simple to do through your online banking. Other than a cap for security reasons (which you say is over the 20K), there's no difference between transferring €20 and €20,000. It's just a standard SEPA transfer.

You can ignore the first reply above as it is all wrong. The most you'll be charged is a few cent (whatever your normal bank charges are if you don't have free banking).

Uncle Buckley

dotsman wrote: »

Not sure if it is just honesty. More fear! If ever a person was audited and it turned out they had not declared, they would face stiff penalties and fines. But, as you already know, they only declare as they approach the limit). Anyway, 20K is relatively tiny in the world of gift/inheritance tax between parents/children. Typically the large amounts are when it comes to actual inheritance (house/farm/business etc).

With regards transferring the money. Its quite simple to do through your online banking. Other than a cap for security reasons (which you say is over the 20K), there's no difference between transferring €20 and €20,000. It's just a standard SEPA transfer.

You can ignore the first reply above as it is all wrong. The most you'll be charged is a few cent (whatever your normal bank charges are if you don't have free banking).

Thanks. I don't have a business or farm. My only other asset is my home. It seems it would have to sell for well over €600,000 after taking the €20,000 cash into account for my children to become liable for CAT. It would do well to sell for half that.

Henry Ford III

Dunfyy wrote: »

They have to pay gift tax after 3000 euros.....

Where did you get that notion from?

killbillvol2

Dunfyy wrote: »

They have to pay gift tax after 3000 euros
Bank is expensive to transfer money look up money transfer companys

Xtorfx. Or Currencies direct never used them
There are others look up how much the other person gets after hidden fees

Literally everything in that post is wrong. Congrats.

coylemj

Uncle Buckley wrote: »

Is it simply a case of logging into my account and transferring them the money?.

Yes

Uncle Buckley wrote: »

My banking app says my daily transfer limit is more than the €20,000 I wish to send. TIA.

But you mentioned two payments of 20k so if there is a daily limit of (e.g.) 30k, this could be an aggregate limit. In which you’d just need to do the two transfers on different days. And if you want to avoid family misunderstandings, just do them on both sides of midnight.