A Christmas gift from Warren Buffet
Why cash isn’t always king
Following his final shareholder return letter from Berkshire Hathaway, it’s timely to consider a story from Warren Buffets former daughter-in-law.
“He would always give each of us $10,000 in hundred-dollar bills.”
And she admitted that “as soon as we got home, we’d spend it!” That didn’t go over well with a man with an estimated net worth of around $160 billion, more than the total GDP of oil-rich Kuwait.
After a year or two of this behaviour, Buffett’s approach to gifts changed.
“Then, one Christmas, there was an envelope with a letter from him. Instead of cash, he’d given us $10,000 worth of shares in a company he’d recently bought a trust Coca-Cola had.”
This season, guide clients toward gifts that build a financial future. Aviva offers three strong solutions:
1. Children’s Savings Investment Trust (Regular Savings)1
- Contribute up to €3,000 per child annually (€6,000 per couple) under the Small Gift Exemption.
- Start from €100 per month.
- Growth isn’t treated as a gift for tax purposes.
- Funds managed until the child turns 18.
Ideal for: Parents or grandparents gifting regularly in a tax-efficient way.
More information here
2. Children’s Investment Trust (Lump Sum)2
- Gift (subject to the child’s lifetime CAT threshold (currently €400.000 for Group A and €40,000 for Group B).
- Start from €10,000.
- Growth is tax-smart and managed until age 18.
Ideal for: Milestone gifts with long-term impact.
More information here
3. Section 73 Savings Policy3
- Gift planning for inheritance tax purposes.
- Start from €100 per month or lump sum options available.
- Proceeds can be used to pay Capital Acquisitions Tax (CAT) without creating an additional tax liability.
Ideal for: Families with significant assets who want to plan for future inheritance tax efficiently.
More information here
Talking points, tips and reasons to call
- Emphasise the €3,000 annual exemption and compounding benefits.
- Use the Aviva One Minute Pitch videos to simplify client conversations.
- Position lump-sum investments as premium gifts for special occasions.
- Highlight Section 73 policies for inheritance tax planning.
Comparison Snapshot
| Feature | Children’s Savings Investment Trust¹ | Children’s Investment Trust² | Section 73 Savings Policy² |
|---|---|---|---|
| Purpose | Annual tax‑free gifts to children | One‑off premium gift | Cover future inheritance tax |
| Tax Benefit | €3,000 per child per year exempt | Can be structured tax‑efficiently | Proceeds used to pay CAT |
| Control | Giver retains control | Giver retains control until maturity | Policy structured for tax use |
| Ideal For | Parents & grandparents gifting regularly | Parents, Grandparents, or other relatives making milestone gifts | Families with significant assets |
| Contribution Type | Lump sum or regular savings | Single lump sum | Regular savings over time |
This Christmas, help your clients give a gift that grows—a financial foundation for the next generation.
Visit our Section 73 Savings plan and Investing for Children hubs for more information
All information is correct as at 18 November 2025.
1. The €3,000 annual exemption is per beneficiary and subject to CAT rules.
2. Generally, Group A includes children of the disponer. Group B includes other relatives of the disponer, such as grandparents. Group C includes everyone else. For more details see CAT groups and group thresholds (revenue.ie).
3. To qualify for Section 73 relief, the policy must meet Revenue requirements, including being in force for at least 8 years.The information given is a guideline only. Aviva Life & Pensions Ireland DAC accepts no responsibility for monitoring CAT thresholds or for any CAT liabilities that may arise.
Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information. The information provided is accurate at the time this article was created in November 2025. You should seek professional tax and legal advice to satisfy yourself of your own tax position. The information given is a guideline only. Aviva Life & Pensions Ireland DAC accepts no responsibility for monitoring CAT thresholds or for any CAT liabilities that may arise.
Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: These funds may be affected by changes in currency exchange rates.