Contribute to your grandchildren's future

To educate your child privately between the ages of five and 18 will cost you nearly £200,000 according to recent research.  If parents are left to face this bill alone, it’s hardly surprising that over a third have apparently considered taking their children out of private education merely because of the cost.

As a grandparent, you can be sure that any offer of help towards these costs will be gratefully received.  Making a gift now, rather than leaving something in your Will, is a great way to contribute towards your grandchildren’s future.

Do you own shares?

If, as a grandparent, you hold shares then you might wish to consider using them as a way to help fund your grandchildren’s education.  Say you own shares in the family business and have no need for the level of dividend income you are receiving, a gift of those shares into a trust can be a great, tax-efficient way of helping pay the grandchildren’s school fees but not directly passing control of the family business over to the grandchildren!

If a parent gives shares to their children then any dividend income will still be taxed at the parent’s rate, rather than at the child’s rate.  This is not the case where the gift comes from grandparents.  Not only that, if your shares qualify for business property relief there’s no charge to inheritance tax on making the gift into trust, and any capital gains can be held over.

It can be a tax efficient way to make your contribution to your family’s future.  For more advice contact Anna Wensley Stock or email

Guest Blog by Anna Wensley Stock from Wansbroughs Solicitors

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