COMMENT

Q: I would like to give money to my son on a regular basis but am unsure about the tax implications.

Due to health problems, he works casual part-time hours and is never secure in his income. He is in his early 50s, lives alone with no dependants, has no student loan and receives no Government benefits. He is not in a position to have flatmates.

We are elderly parents with more than enough money for our own simple lifestyle and would be happy to assist our son with a small, regular cash payment to meet his basic needs and take away some of the stress associated with his irregular income.

Can you advise what the tax situation is in regard to gifts of this nature?

It is very unlikely that we would ever need to call upon Government subsidies towards future rest home fees if such were required.

As our estate will eventually go to our son, it would give us more pleasure to start improving his circumstances now, than knowing that he will be comfortably off after our demise.

A: I quite agree. Let's get the happiness happening as soon as possible. And you've got the green light from Inland Revenue!

"Cash gifts are not taxable income for income tax purposes even if

Give it to the kids

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