Ways to pay grandchildren’s school fees
Advising a widow with a substantial pension income on the effective way of providing income to pay school fees for the grandchildren.
We advised her on the gifting a beneficial interest in a flat worth £600,000 into trust for the benefit of the grandchildren. The widow then paid a market rent on her occupation of that percentage share of the flat owned by the trust.
The work included drafting the appropriate trust structure and ensuring that the widow retained control. We also advised on the tax consequences including the saving of £120,000 of inheritance tax and the income tax saving of utilising the grandchildren’s basic income tax allowances.