Funding for School Fees

Many parents will have at least made provisional plans about how they would like their children to be educated almost from the day they are born, and in such a competitive world, the benefits of a good education are very important.

For those who wish to use the private sector, funding a child’s education can be a very significant financial commitment. According to the Independent Schools Council, the average fee per term at an ISC school for 2008/09 was £3,933 and £7,748 for boarders; and fees are rising very much faster than inflation.

With such a large call on the family’s finances, talking to an Independent Financial Adviser can be a very important first step. Our advisers will be able to discuss your plans and hopes for your children and then help you arrange things so that you can meet the costs in the most tax efficient and flexible way.

If like many people you aren’t in a position to afford the school fees from your own salary, then there are generally four options:-

• If you require the school fees immediately you may decide to spread the cost by making payments over future years, utilising some form of borrowing.

• You may be able to secure financial assistance through gifts from Grandparents for example, where we can help you through the intricacies of the implications on Inheritance Tax (IHT).

• You may have a lump sum available that can be invested in a tax efficient way to help meet the required fees at given set times in the future. Again our advisers can help you use all the tax breaks you are entitled to in order to make sure you get the most from your money

• If you have some time before the fees are needed, we can help plan a savings scheme for you to build up funds in the most tax efficient way so you have the right money at the right time in the future.

It might also be worthwhile just making sure your life insurance is enough just in case! We can also help with trust work and making sure that your hopes for your children’s education won’t be dashed through lack of planning.

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