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Trust Fund for School Fees
opinions4u
Posts: 19,411 Forumite
I am blessed with a bright 10 year old and a mediocre state education system locally where the LEA seems more intent on social engineering than providing a decent education.
I have around £45k in savings in joint names with my wife which we intend to use to pay for private education.
While employed at present, I am concerned that in the current economic climate my job may not survive.
My understanding of the benefits system is that tax credits do not take savings in to account, but, after 6 months, Jobseekers allowance does.
Based on current benefit levels and my wife's part time work, we would be able to maintain our mortgage and main bills (the holiday and Sky may be in danger!). This becomes more difficult if £60 a week in benefits stops unless we draw funds from the savings allocated to education.
Is there a way to set up a trust fund that will make these £45k in funds available to my son for education fees only, and move them out of reach of the benefits system?
How much would it cost to maintain?
What happens to the trust if the private school says "no" to him? Can the trust revert back to Mum and Dad?
I have around £45k in savings in joint names with my wife which we intend to use to pay for private education.
While employed at present, I am concerned that in the current economic climate my job may not survive.
My understanding of the benefits system is that tax credits do not take savings in to account, but, after 6 months, Jobseekers allowance does.
Based on current benefit levels and my wife's part time work, we would be able to maintain our mortgage and main bills (the holiday and Sky may be in danger!). This becomes more difficult if £60 a week in benefits stops unless we draw funds from the savings allocated to education.
Is there a way to set up a trust fund that will make these £45k in funds available to my son for education fees only, and move them out of reach of the benefits system?
How much would it cost to maintain?
What happens to the trust if the private school says "no" to him? Can the trust revert back to Mum and Dad?
0
Comments
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Sounds like benefit fraud to me!"Brevity is the soul of wit and it is also the essence of effective communication" Rush Limbaugh.0
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How about choosing the school now and paying all the fees in one lump sum up front. Two benefits - one, you can guarantee your child will have a place there for the duration and two, the money will be gone.
The downside would be you are then stuck with the school regardless (unless you put up a fight to get the money back which could be ugly) and also the money is pretty much untouchable if you need it for any reason0
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