Parents and Grandparents
Parents
We can help people, in many different financial circumstances, manage their school fees payments. Many of our clients would regard themselves as average earners.
The clients we can help the most though, typically run small businesses, are company directors, hold management positions or are highly paid professionals.
Self employed people can often be helped significantly as there is more flexibility in the way income and assets can be organised.
Grandparents
We are increasingly finding grandparents assisting in the funding of their grandchildren's school fees. Some independent schools are even holding open days just for grandparents.
Grandparents often have larger amounts of capital and disposable income than their children. Due to the property boom, they may have sizeable equity in their home or realised good returns when downsizing. Many grandparents prefer to help their families while they are still alive rather than just leaving inheritance.
Grandparents may pay school fees out of their income without any risk of future Inheritance Tax (IHT). They may also convert a lump sum to a guaranteed tax free income to cover or contribute to the cost of school fees.
£3000 may be paid per year from savings without IHT and any gift is immune from tax if they survive a further 7 years.
Grandparents have some tax advantages over parents when it comes to arranging trusts. They can provide income for private education through a trust where the fund's income tax is charged to the child rather than the grandparent. A parent cannot transfer income tax in this way.
SFIA can help grandparents fulfil their plans in the most cost effective manner.
Parents and Grandparents
Parents
We can help people, in many different financial circumstances, manage their school fees payments. Many of our clients would regard themselves as average earners.
The clients we can help the most though, typically run small businesses, are company directors, hold management positions or are highly paid professionals.
Self employed people can often be helped significantly as there is more flexibility in the way income and assets can be organised.
Grandparents
We are increasingly finding grandparents assisting in the funding of their grandchildren's school fees. Some independent schools are even holding open days just for grandparents.
Grandparents often have larger amounts of capital and disposable income than their children. Due to the property boom, they may have sizeable equity in their home or realised good returns when downsizing. Many grandparents prefer to help their families while they are still alive rather than just leaving inheritance.
Grandparents may pay school fees out of their income without any risk of future Inheritance Tax (IHT). They may also convert a lump sum to a guaranteed tax free income to cover or contribute to the cost of school fees.
£3000 may be paid per year from savings without IHT and any gift is immune from tax if they survive a further 7 years.
Grandparents have some tax advantages over parents when it comes to arranging trusts. They can provide income for private education through a trust where the fund's income tax is charged to the child rather than the grandparent. A parent cannot transfer income tax in this way.
SFIA can help grandparents fulfil their plans in the most cost effective manner.