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Where are the funds coming from
to put the girls through private school? Where
are the funds coming from to send Brian to Ramsdean (and
from what age)?
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REMEMBER You should not use any information
contained on this site as the basis of any action until
you have discussed matters with your financial adviser.
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Considerations here are timing, any
protection element, tax efficiency, security of investment.
Suitable contracts might be one or more of:
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Unit
Trust. Open ended and income tax liability can be
minimised by choosing a non or low income producing fund.
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Endowment
Assurance - life assurance element giving some protection
on early death. Less tax efficient but fund choice can cater
for more cautious investor. Fixed maturity date. A number
of segmented plans could be set up to produce the fees (or
a portion of the fees) required.
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Unit Linked Maximum Investment
Plan. Potential for a good level of growth. Can be taken
out as a basic 10 year plan but with facility to mature after
longer periods with no penalty, thus giving flexibility.
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Educational Trust Investment
is another less obvious possibility which necessitates the
creation of (usually) an Accumulation and Maintenance trust,
the maintenance portion giving the trustees scope to pay for
educational/ maintenance costs whilst the rest of the trust
fund accumulates for the benefit of the beneficiaries (usually
at 25)
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Family Income Benefit
with a term set for how long the fees will be needed (including
university cost?). To protect commitment to pay school fees
on death before the children finish their education.
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