Planning Towards Your Child's Future - What You Need to Know About Education Trust

Sunday, October 17, 2021 / 09:00 AM / FBNQuest / Header Image Credit: Staploe

Thereis no doubt that the joy of parenting beats the responsibility of raisingchildren. However, poor planning can make this obligation harder than it needsto be.

Planning foryour child's future can be expensive. Paying for necessities, school fees,hobbies, family vacations, and unexpected events in life quickly adds up. Ifyou are a parent, then these expenses are either in your presentor your future.Putting a child through formal education often represents regular rising fee payments over about 16 years if they enrol in a tertiary institution. To limit the stress related to financing your child orchildren's education, it is best to start planning for it early. An Education Trust provides an innovative and efficient way to do this.

Rising tuitionprices could mean that many families struggle to afford their children'ssecondary and higher education without borrowing money or taking out loans. Inaddition, to relieve future stress, creatingan Education Trust for your child presentsa vehicle into which familymembers, guardians and close friends who would like tosupport a child can make their contributions.

An EducationTrust is overseen by a Trustee, who can ensure that the Trust is used foreducational purposes only. Through the Trust instrument, the Trustee can bedirected to handle the funds in virtually any manner you wish as the creator ofthe Trust.

In addition toaddressing costs associated with a beneficiary's education, the Trust couldspecify periodic payments of set amountsto the beneficiary and prescribe the usage of the Trust'sassets upon the completion ofthe beneficiary's education. They may also be designed to provide for childrenthat you may have in the future. Education Trusts can be operational immediatelyor upon the demise of the creator of the Trust.

Contemplatingfinancing your child's future education while catering to your currentfinancial obligations need not be a hassle. There are several options for howyour own financial and physical assets can be incorporated into an EducationTrust. FBNQuest Trusteescan guide you through creating an Education Trust for your loved ones to make life easier for you as a parentand for the children/ward.

We are happy toadvise you on how to combine assets that you own now with those you will earnin the future into an EducationTrust that catersto the needs of the beneficiaries in line with your wishes.