Why grandparents can be 'trusted' with school fees

What advisers need to know about discretionary trusts and IHT

clock • 4 min read

Richard Burgess looks at school fees, discretionary trusts and the consequences for IHT...

With the back-to-school season bringing with it an unwelcome hike in school fees, generous grandparents may wish to contribute to costs and alleviate the financial burden on their own children. They may not of course be inspired by altruism alone; grandparents could also reduce the inheritance tax bill of their own estate. Paying the fees as they fall due is one way of achieving this but creating a discretionary trust to put funds aside for future fees may put a greater dent in the inheritance tax bill. A discretionary trust is a flexible trust under which no one has an automatic righ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Spring Budget decisions motivating client push for more tax efficiency

Spring Budget decisions motivating client push for more tax efficiency

‘Frozen thresholds are impacting on bonds positively’

Hope Coumbe
clock 16 May 2024 • 1 min read
CGT: Clients need 'different wrappers at different times'

CGT: Clients need 'different wrappers at different times'

A platform offers the opportunity to invest in multiple tax wrappers

Barry Foster
clock 14 May 2024 • 4 min read
Business Relief in IHT planning set to become 'even more important'

Business Relief in IHT planning set to become 'even more important'

Advisers expect to see an increase in unquoted BR in IHT planning

Isabel Baxter
clock 09 May 2024 • 1 min read