I have 2 children both now under 13 years of age and since when they were 7 have opened a Joint building society account to build up some savings for them when they grow up. Both my wife and I transfer annual amount of £3000 into each of these accounts which forms part of our gift for the yr for IHT purposes. The monies have not been used at all so far but we forsee using it for their education costs in future or as a deposit for purchase of their private residence. We may also borrow the monies if we require for our own purposes (haven't done so far but MAY do so in future).
My concern is that as the Acccounts are in Joint names with ourselves can they really be regarded as gifts for IHT purposes? The tax office may infer that we may have effectively put the monies away for ourselves when children were young and now we are using it back for our own self so it was never a gift anyway.
In hindsight are we better off accumulating monies in an A&M trust set up for the children? How would we go about setting up an A&M trust & how much would it cost to set up?
Any guidance will be most appreciated.
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