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Trust fund for 6 year old (NOT CTF)
oddjob_3
Posts: 23 Forumite
I have read the main reports on savings for children, but have not found anything relating to specific Trusts for (older) children other than the new CTF.
The purpose of a specific Trust is to ensure that the beneficairy receives the investment outwith the inheritance situation if the donor(s) should die within the seven years qualifying period.
My situation is that I have a 6 year old Grandson, and I (and my wife and his parents) want to save for his schooling in about 4 years time.
We already have small (£25/month) endowments and Childrens Bonds in his name.
Advice please!
The purpose of a specific Trust is to ensure that the beneficairy receives the investment outwith the inheritance situation if the donor(s) should die within the seven years qualifying period.
My situation is that I have a 6 year old Grandson, and I (and my wife and his parents) want to save for his schooling in about 4 years time.
We already have small (£25/month) endowments and Childrens Bonds in his name.
Advice please!
Old Faithful we roam the range together,
Old Faithful in any kind of weather,
When the round up days are over,
And the Boulevard’s white with clover,
For you old faithful pal of mine.
Giddy up old fella cos the moon is yellow tonight,
Giddy up old fella cos the moon is mellow and bright,
There’s a coyote crying at the moon above,
Carry me back to the one I love,
And you old faithful pal of mine.
Old Faithful in any kind of weather,
When the round up days are over,
And the Boulevard’s white with clover,
For you old faithful pal of mine.
Giddy up old fella cos the moon is yellow tonight,
Giddy up old fella cos the moon is mellow and bright,
There’s a coyote crying at the moon above,
Carry me back to the one I love,
And you old faithful pal of mine.
0
Comments
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Each Grandparent can give a child up to £3000 per annum and this gift is exempt from Inheritance Tax. So no problem there................................I have put my clock back....... Kcolc ym0
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Robert_Sterling wrote:Each Grandparent can give a child up to £3000 per annum and this gift is exempt from Inheritance Tax. So no problem there.
No expert here - but as I understand it, monies given to the children probably shouldn't be used for school fee funding. It is the childrens money and in the future it may be possible for them to sue their parents (assuming that they were acting as trustees). Not saying they would but if the amount spent were substancial, and lets face it private education is not cheap, not only would they have a case but they might also have an incentive.
Once again I may be wrong here but, an A&M (Accumulation and Maintainance) trust can be used to pass money over for school fees. The beneficiaries would be the children, the trustees the parents, but the 7 year rule would still apply.
If are considering contributing substancial sums towards your grandchild/childrens education it would definately be worth having a chat with SFIA.
http://www.school-fees-planning.co.uk/
Hope this helps.
sc520
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