Educational Trust

The cost of private school (age 4-18) is now over £300,000 per child, with most parents paying an additional £200,000 in income tax.

A School Fees Plan will show you how to fund your school fees efficiently, without neglecting your other long term financial goals.

There are often many alternative ways to fund school fees which can also facilitate your other financial goals. Improving your tax efficiency for example, will have a major impact on your long-term wealth.

Whether you consider yourself in a good financial position or not, we believe every parent can benefit from a school fees plan.

Paying for education

On average, private school fees can range from £15,000 – £30,000 per child per year. This is a significant sum of money and this is before they consider university and other further education costs.

Setting up a trust may be ideal for those parents or grandparents who may wish to save money over a period of time to fund these expenses or if they wish to transfer a lump sum as part of their estate planning.

The Office of National Statistics reported that in England in April 2020, 89 per cent of deaths due to Covid-19 was in the 65+ age group.

Therefore, it wouldn’t be unreasonable to assume that grandparents falling within in this age category could be thinking about providing for future generations.

What type of trust should I set up?

So it is important to consider the type of trust to suit the needs of the family.

Different trusts have different tax consequences. Beneficiaries’ rights to the income and capital of the trust fund will also differ among different trusts.

There are three main trusts which could be appropriate in setting up a trust to fund a child/grandchild’s education.

  1. Bare trust
  2. Discretionary trust
  3. Interest in possession trust

Please contact us for more details.

We can also help you with:

Family Discretionary Trust

Life Insurance is a type of insurance policy that can help minimise the financial impact that your death could have on your loved ones. If you die

Interest in Possession Trust

For a married couple with an estate value in excess of two ‘Nil Rate Bands’, the recommendation would be to use: – A Flexible/Family

Sibling Trust

WHY USE MULTIPLE SIBLING TRUSTS? Setting up a Trust is a flexible way of giving away assets without passing them absolutely to Beneficiaries,

Pension Death in Benefit Trust

New flexi pension rules give a variety of possible options available to surviving beneficiaries of a deceased pension scheme member. One of the possible

Family Pension Death Benefits Trust

New flexi pension rules give a variety of possible options available to surviving beneficiaries of a deceased pension scheme member. One of the possible…

Family Gift Trust

Want to gift to reduce Inheritance Tax liability on death. Want to provide a deposit for a beneficiary’s house purchase Want to make provision whilst alive

Life Insurance Trust

Most couples own their property as “Joint Tenants” which means that on the death of one of them, the property passes to the survivor automatically.

Family Business Trust

Establishing Family Business Trusts to receive business assets on death is the most protective and tax efficient means of dealing with such assets.

Educational Trust

The cost of private school (age 4-18) is now over £300,000 per child, with most parents paying an additional £200,000 in income tax.

Family probate preservation plus trust (Asset Protection Trust Plus)

Used most commonly to ‘ring fence’ major assets such as the family home providing peace of mind that the assets are protected for future generations.

Death in service Trust

Home insurance (or house insurance) protects you from insured events that damage your home or your belongings. For example, if your home is