University fees!!

andybodoyd

NEED A BIT OF ADVICE, my daughters age 12 and 14 are receiving £10,000 inheritance. Both are expecting to go to university. Is it better to put the money in an account in there names or will that count against them for university fees or is it better left in our name or will it make no difference whatsoever. Had a son in university a while back but things have changed since then. All advice welcomed!!

mountainofdebt

If the account was in their name, would there be a chance of them dipping into it?

For that amount of money and for that length of time I think you might be better taking proper financial advice as to how it can best be invested.

nearlyrich

At the moment the parent with care and any step parent are assessed to determine the level of student loan available, all students now get offered a tuition fee loan in addition.
Who knows what will happen in the next few years, things have changed every year that my two have been involved in HE!

As Mountainofdebt has said make sure you get proper advice so it grows as much as possible over the next few years.

kr15snw

I am almost certain that when I filled out all the student finance forms they asked if my mum and dad had any savings, but nothing was asked about me. (wages or savings). I would put it in their name, but maybe in some sort of trust fund so they cant touch it till their 21? Then if they are at uni they can pay off their fees there and then. If they arnt at uni they can decide what to do with it then!

If I had 10k when finishing uni I would be over the moon!!

andybodoyd

The plan is that they won't/can't touch it. It will be up to themselves if they want to go to university.Hopefully by the time they want to go to uni it will be free ,with free accomadation to encourage the academic youth of the nation!!!Is it still April the first?

Justie

andybodoyd wrote: »

The plan is that they won't/can't touch it. It will be up to themselves if they want to go to university.Hopefully by the time they want to go to uni it will be free ,with free accomadation to encourage the academic youth of the nation!!!Is it still April the first?

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: If only!

scotsgirl_3

student loans/bursaries/fees are generally assessed only against the parents income and savings, not the students - so it would probably be best in their name in some way.

RufusFrog_2

The key thing is that if the money is in your children's accounts they will not have to pay income tax on the interest (unless they earn several thousand pounds a year!) - this can normally be claimed by filling in a form when applying for the account - child-specific accounts may not offer the best rates once this is taken into account. I don't think they can open an ISA however (although they could start a pension!!!). A fixed term bond may be worth considering as the money can be 'tied-up' until it is needed (although if fixed-rate that involves a certain amount of betting on the future direction of interest rates which are still quite low, historically speaking).