IN ASSOCIATION WITH
Insuring The Future
As part of Endsleigh Insurance , SFS ( www . sfsgroup . co . uk ) is one of the biggest school fee insurance providers . Established in 1991 , it is a unique scheme that enables policy proceeds to be paid directly to a school rather than to any individual which avoids any taxation or probate issues normally associated with a deceased ' s estate . With school fees continuing to rise faster than salaries , this crucial scheme can protect the education of your child should the worst happen . It is after all , always good to have peace of mind , especially when it comes to the futures of our loved ones .
Upfront Guarantees
Another way of thinking ahead to avoid any mishaps is by simply paying the school fees upfront . Most independent schools will be able to arrange invoices in the form of an advance lump-sum . This could end up protecting you from any school-fee inflation rises . A similar option may be available in the form of an investment scheme at your school , as long as they have charitable status . Once you have paid a lump-sum , the school will invest it in low-risk investments , the returns on which will be kept by the school after they have given the parent what is classed as discounted fees .
Business Opportunities
The purse strings do not have to be so tight for those with family businesses either . By naming your children as shareholders , the school fees are paid by paying out dividends to the children , which is consequently tax free as they won ’ t have any other earnings or income and thus their personal tax allowance can be used . Pension savings can also help parents that are over the age of 55 , the new pension rules allowing individuals to take up to 25 % out of their pension pot as a tax-free lump-sum . Using ISAs and offshore investment bonds are also a great way to save and invest your money . It does take hard work , sacrifice and dedication , though perhaps another useful lesson gained for your children , this time not taught by their Latin teacher or hockey coach , but by you and their family funders themselves .
Means Tested Support
In 2019 the Financial Times published an article that informed readers that ‘ more than £ 1bn a year of financial assistance is available to parents , enabling one in three students to have their school fees reduced or even waived .’ With the average cost of fees being the highest in London and the South East , families living in Kent can expect a healthy bill upwards of £ 5,000 per term falling to them .
At some schools , parents can apply for means-tested style support , although those with bigger or second homes , educational trust funds , or higher household incomes may not be eligible . If your child / children are gifted at sports , arts or all-round academia they may be eligible for assistance with their fees with a scholarship . This can range from a 10 % - 50 % reduction in termly fees , could include the addition of extra tuition such as in music or sports and in some instances may cover the entirety of annual tuition / boarding fees .
You ’ ll be pleased to know that the pressure on independent schools to justify their charitable status is also increasing , resulting in both bursaries and scholarships as well as extra help with things such as uniforms , technology and trips . Children of those in the armed-forces , Church of England clergy , of who work for independent schools themselves are also likely to qualify for significant fee reductions . As for those of us with more than one child to provide the very best for ( it is only fair , after all !) there may be a reduced amount for extra siblings who also attend .
* Returns from financial investments are not guaranteed and share value may go down as well as up . Please refer to regulated financial companies for advice .
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