using property to fund schooling
- Thread starter CHAOS
- Start date
Dunno bout the structures, will let the specialist work on that.
Have had quite a few clients that did very well out of property in a short space of time, cashed up and paid years of school fees in advance, which also provides a discount and inflation hedge
ta
rolf
Have had quite a few clients that did very well out of property in a short space of time, cashed up and paid years of school fees in advance, which also provides a discount and inflation hedge
ta
rolf
There's definitely financial products that you can set up to this end. The profits are often tax free if the money is used for educational purposes. You need to talk to a financial adviser about this.
I'm willing to bet that you could set up your own trust that achieves the same result, but getting the tax rulings might simply cost you more than it's worth.
I'm willing to bet that you could set up your own trust that achieves the same result, but getting the tax rulings might simply cost you more than it's worth.
Yes this can be done - with any normal discretionary trust.
What will be the pros and cons of doing this ?
Thank you
Thank you
the same general pros and cons of using a discretionnary trust.
A normal discretionary trust is just that, a discretionary trust. Your children and yourselves can be beneficiaries and thus receive the profits from the trust and put it towards someone's education. Note that the trusts profits would be taxable.
Take a look at an 'educational bond'. I know a group called 'Lifeplan' provides these. My basic understanding is that you invest through them and the profits are not taxed if used for education purposes. There's lots of other potential tax benefits too. Most of the investments on offer are via the various large fund managers such as Colonial, AMP, etc. Pretty much the same way as super is invested.
You'd need to get specific advice on this. Don't take my word for it, I'm just trying to give you somewhere to look.
Take a look at an 'educational bond'. I know a group called 'Lifeplan' provides these. My basic understanding is that you invest through them and the profits are not taxed if used for education purposes. There's lots of other potential tax benefits too. Most of the investments on offer are via the various large fund managers such as Colonial, AMP, etc. Pretty much the same way as super is invested.
You'd need to get specific advice on this. Don't take my word for it, I'm just trying to give you somewhere to look.
Can a trust pay the school fees as an expense or does it have to distribute the profits, the child pays 46% tax and then still uses after tax money to pay fees?
Pete is this where something like Lifeplan could be a better fit?
Has anyone on here uses educational bonds?
Should we just keep it simple and pay with after tax $?
Pete is this where something like Lifeplan could be a better fit?
Has anyone on here uses educational bonds?
Should we just keep it simple and pay with after tax $?
