What is the most effective way to purchase BTL for kide future?

[Yaff80]

I am looking into making a BTL purchase, using a BTL mortgage, with the intention of it funding my kids future.
What is the most effective way to do this, paying least tax?
I am considering putting in my partners and my own names but in trust for the kid. Will that make me exempt from paying income tax from the rental income?
If My kid decides to sell it rather than live in it, before it is transfered to his name, we would have two allowances for CGT. Is that correct?
If we hit the sack before handing it over to him, there should be no IHT, as it is his already. Is this correct?
I was thinking, that if my assumptions are correct, I have covered myself against most taxes!
If I am wrong please explain why.
Thanks

[Yaff80]

Sorry for not explaining myself clearly enough.
1) Yes she is the mum of our son.
2) By hit the sack, I meant sleeping for good - pushing up daisies, or for those who need it spelt out, when we die!
3) Our son is now 7years old

If we hold it in trust, does it count as our income making us liable for tax, or is it the childs, making it in not liable for tax as he is a minor?

[Telometer]

1. Trusts are almost never worth the cost. Professional fees eat up any (preceived) savings.
2. Any income would almost certainly be regarded as yours until the child is 18 anyway.

You could give the house to the child now (the name on the deeds would be probably yours, but it would be a bare trust as it would be rightly his), but the income would be his so he could spend it on wild women should he so desire, BUT it would be taxable on you. However if he wished to sell it then it would be his proceeds and his CGT bill.

If you have parents with means, get them to buy the house for the child, and then you do not suffer from the income tax point.

[Yaff80]

Unfortunately, I dont have parents with means.
What is teh difference between my parents buying for the child or me?

[jeffrey]

Telometer will tell us for sure; but my (limited) understanding is that parents carry liability for their children's potentially taxable earnings, with which their own are cumulated- whereas grandparents do not.

[Telometer]

indeed. So if you give money to your minor children, then any income is deemed to be yours. If anybody else gives them money, then the income is their own.

And no, it doesn't work if you give your neighbours children some cash, and your neighbour gives cash to your children.