Our monthly video series delivers clear, jargon-free answers to our clients’ most pressing questions in just under three minutes.
In our latest episode of The Big Question, we ask Catriona Coady, Head of Tax: what is a bare trust?
“A bare trust is a trust fund typically established by parents for the benefit of their minor children, children who are under the age of eighteen. One particular advantage of a bare trust that we see is that parents use the annual small gift exemption of €3000 to contribute to the trust fund.
“The benefit of this is that it doesn’t erode the current parent-to-child tax free threshold for gift and inheritance tax purposes of three hundred and thirty five thousand euros,” explains Coady.