Best option for protecting assets for children whilst also tax planning

I have a set of clients who have recently come in to substantial amounts of money. They would like to purchase property for their children but would like to retain some control and protect the assets against their children divorcing in future etc.

I have suggested trusts but they do not wish to pay large amounts of IHT charges. An accountant suggested FICs, they did not wish to pay management fees and wanted something simpler.

I suggested putting a charge on any property purchased in their children’s names with a provision that the charges would end of death but am I correct in saying the assets would still form part of their estates for IHT as there has been effectively a gift on death of the foregone charge?

They have family loans though prudential and pensions but they have reached maximum levels to add anymore.

Any other suggestions welcome.

Thank you.

A charge against the property would seem the best fit for the clients. As you have stated, the debt still forms part of the estate for IHT purposes, and therefore a life policy could be obtained that should be written in trust.

In truth if the clients have come into substantial sums of money, but do not wish to spend the same on advice and management etc… then there is little that can be done.