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

Life's twists and turns: Maximising tax planning opportunities

Life's twists and turns: Maximising tax planning opportunities

Significant events need significant planning

Diana French
clock 11 July 2024 • 4 min read
Government raises £701m from inheritance tax receipts in May

Government raises £701m from inheritance tax receipts in May

‘Neither of the two main political parties have mentioned it’

Hope Coumbe
clock 21 June 2024 • 2 min read
Protracted probate delays: Helping clients manage expectations

Protracted probate delays: Helping clients manage expectations

Toil and trouble in the Probate Registry

Adam Matthews
clock 10 June 2024 • 4 min read