? Best way to give child (age 15) £3000

Kerry_o'keefe

My reasons for this question are numerous but can anyone advise please ?

I believe I can give my child £3k per year (first is this true). What is the best way to do it 1) so she can not get at it and 2) so the tax man can not ?

I want to do this, so over time I can reduce my estate bit by bit(to give Mr Brown less!!!). I do know 3K is not a lot to some and that daughter has to survive me by 7 years (is this right) so there is no IHT. BUT if I were able to do it over 10 or 15 years - I believe it may be significant.

On the other hand anyone who can advise best IHT avoidance plan - I'd love to hear from you. There is so much conflicting info out there, and its so complex to minimise estate. I am a simple person looking to easily reduce IHT.

pavlovs_dog

you might get more responses if you Pm a board guide and ask for your thread to by moved to the tax cutting forum, as this is quite a specialist area of knowledge.

if you scroll down to the bottom of the 'anything else money saving' page, there should be a box which tells you who the guides are for this part of the site.

HTH :beer:

hardpressed

I think it's the giver who has to survive 7 years not the receiver.

tom188

You can give away 3k per year no strings. For more than this the 7 year rule applies. You can also make gifts out of income provided that they do not reduce your standard of living.

regularsaver1

just don't let them spend it. i was given access to £2k at age of 16. You can guess where it went - on nothing much

it would of really been handy when I was at Uni

suzzi2704

Bang it in an ISA I think - this way it'll earn lots of lovely interest too

tom188

suzzi2704 wrote:

Bang it in an ISA I think - this way it'll earn lots of lovely interest too

Once he reaches 16, the minimum age for an ISA that is...

tyllwyd

If you don't want her to be able to access the money, I think you will need to put the money into some kind of a trust. There is quite a simple explanation here
http://www.savingforchildren.co.uk/Designated-Acc-VS-Bare-Trusts-24_22.html
I think you would have to balance up the cost of setting up a trust against any possible IHT benefits.

More4me

This might be of interest
Make your child a millionaire
http://business.timesonline.co.uk/tol/business/money/pensions/article608372.ece