If you're able to take the longer view: pay as much as you can into a pension, such payments are also free of income tax. Then, when you're old you will have a better income and consume less of their inheritance (especially if you die early!)
I've got nowt to give my kids, but my Mum is happy to spend my inheritence on them! She has just given my daughter a good sum for the deposit on her first house purchase. All fine, but she had to jump through numerous hoops and write lots of letters assuring the Bank she was giving the cash as a gift, and would not seek its return or an interest in the house. It seems the Banks are the issue, not HMRC.
In all seriousness I know a few people who have set up fat trust funds for their brats, put their life savings into it, then at 18 the kids have blitzed it all on weed, a suped up Golf GTI and 6 weeks in Pattaya. Legally the money is their's and there is nothing you can do about it.
Most of my wife's older brothers and sisters did exactly that.
Of course no one hopes their kids will behave like that, but I'd consider keeping some of the cash back so you have some control.
We've set up child trust funds for our two, once the funds reach 10 grand, we're not putting anything else in. We'll set up ISAs in our names instead and pay into that.
On their 18th birthdays the kids will be presented with a choice.
Here's 10 grand, you can:
A) Blitz the lot and have some fun for a few months.
B) Spend it on something worthwhile and we'll double it.
I 've wondered about something like that. What's to prevent me invoicing my son for raking the lawn at £10k a pop, or some other inflated form of money exchange so I get money into his savings that isn't seen as a 'gift' but is for 'services rendered'.
I 've wondered about something like that. What's to prevent me invoicing my son for raking the lawn at £10k a pop, or some other inflated form of money exchange so I get money into his savings that isn't even as a 'gift' but is for 'services rendered'.
The tax man knows his shit. They've seen every trick in the book.
Easiest way to do it is buy agricultural land / property which is not subject to inheritance tax. Give them the land, they can then sell it after you're dead, although they will pay capital gains tax on any increase in value.
With the seven year rule. Have a life assurance policy written out for the extra amount of tax IN TRUST. Consult the local tame trusted IFA and they can arrange some nifty legal stuff.
The other thing is just drip feed extra cash as and when the children need it. I have the cash but to keep my mothers cash/tax/paying for care later down as such she pays for my car servicing, random household expenses etc. I can cover the cash very easy but by her spending her inheritance on me now, I salt away my savings now.