As a grandparent, have you considered investing in your grandchild's education instead of paying 40% inheritance tax?
More and more grandparents are contributing towards school fees as they seek to leave a worthy bequest whilst avoiding giving away lifetime earnings to the taxman!
How does it work?
- Regular payment of some or all school fees from grandparents' income can be made without incurring any inheritance tax (IHT) duties - as long as the loss of this money does not force you to dip into your savings
- You can make use of annual IHT exemptions and give away up to £2,500 per annum without attracting a tax charge
- In addition, gifts of up to £250 can be made which are exempt from IHT
- And remember, any amount can be given away without inheritance tax implications as long as the grandparent lives for a further 7 years after the donation.
Grandparents have helped pay fees by:
- Unlocking money in pension funds
- Re-mortgaging property
- Setting up trust funds
- Discounts are available to those paying school fees in advance
A first-class education is one of the most valuable gifts that parents or grandparents can give to children.
To discuss your options further, please contact the Clerk and Treasurer on tel: 01204 840201 or at email@example.com