Cash gift

jd06

Hi all, my dad is heading for 90 and he wants to give my three brothers and I a few bob. Aprox 15000 between us

I was wondering if he did this and he had to go to a nursing home in the near future could he get in trouble for giving us the money and not having It for the nursing home.

He doesn't want to get in trouble and neither do we.

What would be the best way to do the transaction or will we have to go through solicitors.

The amount would be around 4000 each.

Thanks in advance

LawBoy2018

https://www.boards.ie/discussion/2058219243/cash-gift

No paperwork required, 4K is very little in the grand scheme of things. The Group A threshold for children is €335,000. Not sure re the nursing home situation though... Does he hope to apply for the fair deal scheme? If so, the 15K will likely be within the scope of his initial financial assessment.

jd06

Hes hoping to give it to us as cash in the next week or so. Hopefully he'll carry on for a while yet. I'm not sure about the fair deal scheme or about nursing homes , I just thought the government wouldn't be to happy to be paying for my dad in a nursing home when he had given away his money to us.

Thanks for your reply

Spook_ie

€3000 per annum can be gifted to children with no CAT liability,

https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/cat-treatment-receipts-by-children.pdf

but take proper advice about gifting cash to reduce capital there are qualifying time constraints on gifts before taking into account for "fair deal" of 5 years

https://www2.hse.ie/services/fair-deal-scheme/financial-assessment-your-payment-towards-care.html#transferred

LawBoy2018

https://www.boards.ie/discussion/comment/118208780#Comment_118208780

The parent/child group threshold is €335,000 so there is no CAT liability in this instance.

Spook_ie

https://www.boards.ie/discussion/comment/118208796#Comment_118208796

Any cash gifts above €3000 per annum will be deducted from the threshold, if for instance someone was gifted €10,000 then shortly after the giver died and a will came into force then that would reduce their CAT threshold by €7000.

Read the link and the bit about small gift exemption

LawBoy2018

https://www.boards.ie/discussion/comment/118208837#Comment_118208837

Yes, correct.

beachhead

https://www.boards.ie/discussion/comment/118208878#Comment_118208878

e3,000 tax free is the annual limit for children from parents

Claw Hammer

What cash though? Why not EFT

?

jd06

Thankyou very much for all your info and links I'm much clearer now. Handing over the money seems ok and legit it's the fair deal seems to be the problem.

I'll have a chat with my accountant and solicitor

Screenshot_20211123-114247_Chrome.jpg

jd06

https://www.boards.ie/discussion/comment/118210435#Comment_118210435

Well we were thinking previous to all this info that if he passed on the cash it wouldn't be as traceable . Who's to say who or what he spent it on. ??

Claw Hammer

https://www.boards.ie/discussion/comment/118210545#Comment_118210545

It would look very odd if 15k leaves his bank account in one fell swoop and there is no trace of where it went. He could be asked what he spent it on. What is he going to do? Start telling lies?

For people who don't want to get in trouble, you are asking for it.

Buffman

https://www.boards.ie/discussion/comment/118210486#Comment_118210486

I don't think you need to spend money on either an accountant or solicitor for this, unless you're seeing them anyway. (EDIT: I see you're concerned about the fair deal scheme so advice may be required regarding that.)

As it's so close to the end of the year if you did half now, and half in January you'll be well below the €3K limit.

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

jd06

https://www.boards.ie/discussion/comment/118210613#Comment_118210613

Like I said in the previous post that's what we were thinking of doing before I got all this info, your included. As I said I will talk to my solicitor and accountant.

Thanks

Victor

https://www.boards.ie/discussion/comment/118208796#Comment_118208796

That is, assuming that there have been no previous gifts.

OP, potentially receive €3,000 this year and the balance in January. However, do be aware that money may be needed in the future.

https://www.boards.ie/discussion/comment/118210613#Comment_118210613

Cheques can be written.

coylemj

https://www.boards.ie/discussion/comment/118210613#Comment_118210613

'Odd'? How many people buy and sell cars every day of the week? There's €135 billion euros sitting in Irish deposit accounts, the country is literally drowning in cash. And you think a movement of 15K will sound alarm bells somewhere?

Claw Hammer

Very few people pay 15k in cash for a car. Very few will accept so much in cash for a car. Most of the money moves electronically or by cheque and the person who transferred the money can say where it went. The banks are obliged to report suspicious transactions and sums like that leaving the bank account of a frail elderly person would give rise to suspicion.

Going into fair Deal will involve a means test and questioning about assets held within the previous 3 years.

LawBoy2018

https://www.boards.ie/discussion/comment/118212419#Comment_118212419

I think it might actually be 5 years but I'm not 100%.

elperello

It depends on how much your dad has in cash.

There is a disregard of €36,000 for a single person going into Fair Deal.

More info. here

https://www2.hse.ie/services/fair-deal-scheme/financial-assessment-your-payment-towards-care.html#transferred

jd06

https://www.boards.ie/discussion/comment/118212430#Comment_118212430

Hi

I spoke to my solicitor and he said that on the day the fair deal is applied for they can only go back 6 months of statement s to see have transactions occurred. He also reckons that the amount eg 4000grand each will make little or no difference anyway.

Also he is allowed to keep 36000e which the fair deal cannot touch. Thanks to all who helped so far