School Fees Planning                                       

Why Do So Many Parents Fund School Fees From Income And Not Plan? 

School fees represent an enormous financial commitment: and traditionally, parents have been encouraged by fee planning specialists to plan for senior school fees, on the basis that these fees are the most expensive; and pay pre-prep and prep fees from income.  

The downside of this approach is that whilst savings can be made on the fees, by ignoring the pre-prep and prep fees, you are bringing forward the period of financial hardship by funding both current and future fees at the same time.  

Good school fee planning should not only make savings on the fees but also ease the parent’s cash flow.   

Flexible School Fee Planning One very simple approach to determining a plan structure is to plot your children’s current fees, without allowing for inflation; then plan for the overlapping periods that are the most demanding.  

Tax Breaks For School Fees Planning Trust & Protect have developed a variety of strategies that use Trusts as part of a structured approach to school fees planning. Any of these could result in your making material savings on Education costs.

• School Fees Planning Via Your Business - you may be able to get tax relief on contributions to a remuneration and employee retention trust. This fund might then be available for assistance with school fees.

• School Fees Planning Using Capital  - capital on deopsit receives a low risk, stable but taxable income. By buying a series of capital payments from a Trust you may eliminate tax on the interest whilst simultaneously increasing the protection of your family’s wealth and ultimately, your legacy.

• School Fees Planning & IHT - can provide a series of Tax - Free payments to pay school fees, whilst simultaneously increasing their legacy.