I want to pass money to my 22- and 19-year-old offspring in a form they can't just spend. Stakeholder?

I pondered the same question and concluded that a stakeholder pension plan was a good way to do it. My two sons now have a SP plan each and I put money in from time to time. Yo ucan open such a plan as soon as they are born I think!

Robert not a finance pro

Thanks for the reply Robert, and apologies for not acknowledging it sooner. This my first time on since you answered.

I was thinking of a lumps sum Robert. Any thoughts on this? You can do a one-off sum I believe can't you?

I pay in the £2400 into each plan each year, when I can afford it. the government raises this to £3,600 irc. technically I think it's a gift to the children so it is a PET for inheritence tax purposes.

I don't know about larger payments, the yare going to change the rules I think but AFSAIK £2,400 per annum is the maximum at present.

I don't know about larger payments, the yare going to change the rules I think but AFSAIK 2,400 per annum is the maximum at present.

It is not necessarily a PET - it could be within the annual 3000 exemption or a gift out of income.

Yes indeed, in fact if I were to pay by monthly regular payments it could count as a 'regular gift out of income' for which there is no limit as long as my executors can show that I was not using capital to fund it.

The £3000 annual exception covers gifts up to that amount even if they are not out of income, but it is a total figure, it's not £3000 to each person. the #per person' limit is about £250 per year.

Robert