#InheritanceTaxSavings

[moneymaximising]

Small Gift Exemption / Inheritance Tax Savings Plans

The Small Gift Exemption Savings Plan allows individuals to transfer up to €3,000 annually to a child or other beneficiary without triggering Capital Acquisitions Tax (CAT). This structured approach to gifting helps accumulate wealth for loved ones while staying within tax-free limits.

Key Benefits

Tax-Free Gifting: Up to €3,000 per year per donor without CAT implications.

No Impact on Lifetime Exemptions: Does not reduce the beneficiary’s lifetime inheritance/gift tax thresholds.

Flexible Contributions: Make monthly or annual contributions with the option to pause or stop anytime.

Compounded Investment Returns: Contributions are invested and may benefit from long-term growth.

Tax-Free Investment Growth: All future returns are exempt from CAT.

Ownership Transfers Immediately: Once contributed, the funds belong to the beneficiary and cannot be reclaimed.

Eligibility: Available for both under 18 and over 18 beneficiaries (terms may differ slightly).

Types of Plans Available

There are two variations of the Small Gift Exemption Savings Plans, each tailored to different needs and ages. Specific terms and setup requirements apply to each plan.

Setting Up the Savings Plan

To initiate a Small Gift Exemption Savings Plan, follow these steps:

Complete the Application Fill out and submit the savings plan application form along with the required Anti-Money Laundering (AML) documentation.

Submission to Provider The completed application and AML documents are sent to the chosen provider. Processing typically takes 2–4 weeks.

Lump Sum Contributions (Optional) If contributing a lump sum:

You can transfer funds via personal online banking.

Or, request a transfer through your bank/credit union to the provider’s account.

Online Access You will receive a PIN code by post to access the provider’s online system where you can:

View balances

Modify fund choices

Pause or adjust contributions

Revenue Notification The provider will notify Revenue of your contributions. Tax certificates are issued and tax relief is applied to your payroll accordingly.

Contribution Options and Tax Relief (If Applicable)

Although these are typically non-pension contributions, some plans (e.g., AVCs) may involve tax relief structures. Here's a summary:

Regular Contributions

Salary Deduction: Contributions deducted before tax, offering tax relief at source.

Bank Debit: Contributions from your bank with tax rebates adjusted via payroll.

Flexibility

We generally recommend the non-salary deduction method due to:

Greater control

Flexibility with providers and fund selection

Ease in adjusting contribution levels

Who Should Consider This Plan?

These savings plans are ideal for:

Parents or Grandparents gifting to children or grandchildren

Godparents, Uncles, or Aunts starting education funds for loved ones

Family groups supporting a child whose parents are deceased

High-net-worth individuals passing on wealth tax-efficiently

📞 Schedule a Call 📩 Enquire Now

For more Details to know, Visit us:- https://mmadvisors.ie/gift-inheritance-tax-savings-plans/

Money Maximising Advisors Limited (https://mmadvisors.ie/)

Call: ‪+353 91 393 125‬

Email: office@mmadvisors.ie

Address: Unit 3, Office 6, Liosban Business Park, Tuam Rd, Galway, Ireland