Small Gift Exemption
The small gift exemption may not seem like a lot but it can make a considerable impact on your estate planning over time. This exemption allows people to transfer €3,000 to another person in a calendar year without having to pay CAT. That means that parents and grandparents (as couples) can each give €6,000 to each child/grandchild or any other person (including partners and spouses).
As parents, this means you could potentially gift a total €12,000 to your child and their partner in each calendar year which would help a young couple with a house deposit or simply getting a start in life.
There is no obligation for these gifts to be spent in the year it is received so such gifts could potentially accumulate year by year into a substantial tax-free sum, underlining the value of planning and incorporating all available reliefs into any inheritance plan. These exempt gifts are also excluded from calculating whether the tax-free threshold has been reached, meaning the tax liability of the remaining estate on inheritance is unaffected by giving them which makes for prudent family wealth transfer planning.
For more information contact George Skelton at 053 9170507 or email email@example.com