School Fees Trust services
We at Osbornes are delighted to be working with SFIA to help provide a wider range of options for those seeking to fund the payment of school fees.
We may not have a silver bullet for solving all problems regarding paying independent school fees, we do, however, have some ideas regarding tax planning that may be appropriate for those:
- Currently or considering becoming self-employed
- Who have a limited company
- Who have assets which could be transferred to a limited company, such as an investment property portfolio
Initially we would ensure that tax liabilities are being minimised across the family members, and then consider the appropriateness of Trusts.
In a number of cases, school fees are funded by grandparents, maybe from capital that they do not need and wish to pass down the generations. Rather than outright gifts, grandparents may wish to consider the use of a Trust. These structures protect the assets settled into the Trust whilst at the same time enable those administering the Trust (the trustees) to make distributions of income to the children, or direct to the school.
Depending on the circumstances, these Trusts can also potentially hold investments in private companies, therefore, income from those companies (either trading or investment companies) can be used to supplement payments made to the children, and to assist with the payment of school fees.