Best way for a couple to save

Reaper

Surely by that definition the answer is no because it is temporary and there is no "intention of permanently depriving the other of it."

Fatcat1974

Cheers Reaper. One simple solution would be for my partner to simply pay all the cash into her own ISA, wouldn't it? Ok, so if our relationship goes belly-up in future, she could walk away with everything, but I know she wouldn't deprive the kids of money intended for them.

Reaper

Yes that would be simplest provided:
1) You are not likely to use up the annual allowance yourselves
2) You can keep track of which money is hers and which is the kids (inc interest) if you are lumping it in together.
3) When she takes it out and gives it to the kids it will be a gift and might be subject to inheritance tax. However not applicable if she survives 7 years after the gift or her total assets (inc property) are below the threshold, currently £325,000.

giger

Fatcat1974 wrote: »

My partner and I (unmarried) want to put away our child benefit money, potentially to pay for our kids' university costs.

My and my wife have set up a stakeholder style childs trust fund (which in the past 9 months has performed very nicely) for our little boy. I do have the same concerns as you about what the money will be used for but I think if parents are money savvy, there is more chance of this rubbing off on the kids. Whilst I got up to the usual things when I was 18, I was also investing in PEPs and other things thanks to the way my parents where with money, I can only hope my little boy will be so good.

Anyway, if he blows his fund at 18 then as far as I am concerned he's just kissed goodbye to his uni fund. Mom and dad will hopefully be busy spending their own money in their early retirement