- Wednesday 17 September 2025
Introduction
I’ve previously questioned the need for dedicated Child Saver Accounts and how marketing often downplays their complexity. A recent case proved the point when we uncovered a small Hibernian Life policy (now Aviva) from 1998 set in trust for a client’s children. When we tried to withdraw (the “children” are now in their 30s), the provider demanded CRBOT details first. The Central Register of Beneficial Ownership of Trusts was news to the client and, I suspect, to many investors, advisers and even providers.
The Technical Bit
Irish “Child Saver” plans generally come in two legal flavours:
- Assignment (no trust) – commonly used by Zurich Life.
- Bare Trust (an express trust) – used by providers such as Standard Life, Aviva and Davy.
Both aim to help families use the €3,000 Small Gift Exemption, but they differ on admin, flexibility and compliance—especially CRBOT if a trust is used.
1. Assignment (Zurich’s approach)
A parent/guardian/grandparent takes out a policy in their own name and immediately assigns it to the child. From then on, the child is both legal and beneficial owner.
- Contributions you pay after assignment count as gifts each year (so the Small Gift Exemption can apply).
- Trade-off: you cannot switch funds later or redirect future premiums, and the assignment is irrevocable.
2. Bare Trust (most others)
The policy/account is set up under trust using a deed/written declaration.
- Trustees retain control until the child is an adult, allowing fund or provider changes.
- Because it’s a trust, CRBOT registration applies (see below).
IMPORTANT: The CRBOT “tripwire” (for Bare Trusts)
Trustees must register on CRBOT. For older trusts (on/before 23 Oct 2021) deadlines have passed while new trusts must register within 6 months. Regulated firms may ask for your Trust Registration Number and a time-limited Access Number. Failure to register can stall transactions and may attract penalties.
How to choose: Assignment vs Bare Trust
Assignment
- Cleaner administration (no trust, no CRBOT).
- You’re comfortable with irrevocable ownership and no fund switching.
- Purpose-built for using the €3,000 Small Gift Exemption annually.
Bare Trust
- Your chosen provider/platform works better under a trust.
- You value trustee control until 18.
- You’re happy to handle CRBOT registration and keep access details on file.
Do You Need a “Child Saver” Product?
With the parent-to-child CAT threshold at a high level (and likely to increase this budget), most families can simply make regular gifts under the Small Gift Exemption and have the child save/invest without any special ‘wrapper’.
Gifts above €3,000 in a year do reduce a child’s lifetime threshold but CAT only arises once the cumulative total exceeds the relevant threshold.
For households unlikely to approach those limits, Child Saver Accounts can be more about discipline and packaging than tax efficiency. For larger estates or sustained multi-year gifting, a structured solution—with clear records—can still be smart.
Quick Decision Guide (Advice is Always Recommended)
Discipline via €3,000 rule:
- Assignment; note the no-switching constraint.
Trustee control / provider terms:
- Bare Trust; register on CRBOT and keep the Access Number ready.
Estate below thresholds:
- You can still use the Small Gift Exemption without a wrapper.
Existing account in trust: Expect a CRBOT check before encashment (TRN + Access Number via ROS).
Disclaimer: This article is for information purposes only and does not constitute legal, tax, financial, or investment advice. Curran Futures accepts no responsibility for any loss arising from reliance on its content. Tax treatment depends on individual circumstances and may change in the future. Clients should obtain professional advice before making any decisions.
