Further to the above questions, we would like to set up a regular annual gift (under the 3k max) to each of our children to avail of the gift tax exemption. One is still a minor, the other is 18. My understanding is that for it be seen truly as a gift we should no longer have control over this money after it has been gifted. However when looking at bank accounts etc for the minor I think we would still be considered to have some control over this. We also looked at share accounts, but again minors cannot hold these in their own name, so we might still be deemed to be in control of the funds.
Can anyone recommend how best we should set up this annual gift (for both the minor and the 18 yr old) so that we don't run into problems with gift tax down the line and yet hopefully still get some return on the money. If possible, we would prefer not to involve the kids in the setup as we would like them remain unaware of this gift until (much) later down the line so the money is not squandered in the college bar!!