In a recent survey conducted by Standard Life almost 2/3rd of parents want to help their children onto the property ladder. Unfortunately as we are all aware it is not quite as straightforward as this and many obstacles (revenue / economic climate)  have presented themselves over recent years. Below we have picked out some of the main headline statistics that we found interesting;

• 62% of parents with children under 18 said they’d like to open a regular savings investment account to help their offspring build up their first house deposit. Parents in the 35-44 age bracket tended to be the most keen with 77% willing to help them save towards their first house. 
• 41% of grandparents also said they would be happy to open a regular savings investment account to help grandchildren under 18 accumulate their first house deposit.
• Women are more likely to want to help their children than men. Over two thirds (67%) of women compared with 56% of men said they want to help their children buy their first house.

• A further consideration for parents and grandparents is the tax efficiency of helping out their offspring. As we know individuals are allowed to receive an annual ‘small gift exemption’** of up to €3,000 tax free from each donor, which translates into €250 per month for a savings/investment plan.

One of the most underutilised means of passing on wealth to the next generation is via the ‘Small Gift exemption’ this limit is currently set to €3,000 tax free from each donor per annum.  For grandparents / godparents willing to lend a hand to a relative this is the most tax efficient way of passing on wealth. Unfortunately in a lot of cases individuals do not have the excess capital lying around to pass on, this wealth only becomes available in the event of death and the liquidation of assets. However as we all know the thresholds and the Capital Acquisition Tax levels have become increasingly unfavourable over the last few years, and relatives can be left facing hefty tax bills if inheritance planning hasn’t be planned in accordance with threshold limits.

Passing on wealth is not a straightforward process, planning ahead can save your estate huge amounts of money, if you want to beat the taxman the earlier you start passing on wealth the better. There are not too many opportunities left for tax efficient succession planning but the ‘Small Gift Exemption’ remains one of the most efficient and underutilised means out there today!