Gift books
Gift book
A donation can be used to transfer property free of charge during the donor's lifetime to a recipient of his or her choice. A gift may be appropriate, for example, as part of inheritance tax planning. It can also influence the subsequent distribution of an estate. This may be the case, for example, where a gift is regarded as an advance inheritance from its recipient.
The purpose of a gift voucher
Donations can be used to achieve a wide range of goals. For example, donations can be used to ensure the preservation of assets in the family. It can also be used to transfer the business to a successor relative.
The gift voucher and its contents
It is usually a good idea to draw up a donation receipt. In some cases, a deed of gift is necessary in order to register the donated property in the name of the recipient.
The gift voucher can also be used to verify any conditions attached to the gift. When making a gift of property, it is important to ascertain the tax consequences of the transaction and the implications, for example, for subsequent inheritance distribution.
Tuula Rainto, [email protected], 045 111 5577
The gift voucher and its conditions
Gift deeds can include conditions that are not possible in the context of a deed of sale. For example, the right of the donor's spouse to marry can be excluded. This ensures that the donated property remains with the donee in the event of a divorce.
Deed of gift and reservation of title
The donor may also retain the right to retain ownership of the property to be donated. This allows the donor to continue to use the donated property, such as a flat or summer cottage, in the normal way, while ensuring that ownership is transferred to the person he or she wishes.
Gift tax
The recipient pays tax on the gift if the value of the gift is €5,000 or more. Gift tax is also payable if the recipient has received several gifts totalling €5,000 or more from the same donor over a three-year period. Even if no tax is due on the gift, it is often still worth filing a gift tax return.
Gift tax can be influenced by the content of the gift certificate. For example, a reservation of title clause will affect the amount of gift tax. Gift taxation is also linked to transactions between relatives. By using the right amount of consideration, certain assets can be passed on to posterity in a tax-efficient way.
Donation and advance inheritance
The gift may also affect the recipient's inheritance tax if it is a gift that is considered an advance inheritance or if it was made up to three years before the donor's death.
Contents of the gift voucher
The taxation of a gift can be influenced by the content of the gift certificate. For example, a reservation of title clause will affect the amount of gift tax. To ensure that the donor's intentions are fulfilled, it is advisable to seek the advice of a lawyer when planning the gift.
Gift taxation is also linked to transactions between relatives. By using the right amount of consideration, certain assets can be passed on to posterity in a tax-efficient way.
The Amos Gift Book and Law Firm
To ensure that the donor's intentions are fulfilled, it is a good idea to seek legal advice when planning your gift. We can assist you in drafting the right gift document. You can view our price list Here
Tuula Rainto, [email protected], 045 111 5577