Tel: 01746 712 900 | info@matrixcapital.co.uk 

GrandParentsEducation

Advising Grandparents on How They Can Help with Education Costs

Education costs in the UK have been steadily rising, making it increasingly difficult for parents to afford private schooling for their children. With fees increasing by almost 6% annually, families now face the daunting prospect of paying over £5,000 per term for a day school or £13,000 for boarding. Some schools even charge more than £50,000 a year.

To make matters worse, there is the threat of the government removing the VAT exemption on fee-paying schools, potentially leading to even higher prices. In light of these challenges, many middle-class parents are turning to their grandparents for financial support. However, it's crucial to consider the implications and potential tax liabilities before accepting this assistance.

 

CareHomeSmall

Care home fees soar amid cost-of-living crisis.

The above was a worrying, and yet an entirely unsurprising headline to a September article from the respected consumer watchdog, Which.

Huge increases in care costs

The report, based on Laing Buisson research revealed that the average weekly cost of residential care homes in the UK rose by an alarming 19% between 2021/22 and 2022/23. This represents an increase of around twice the rate of inflation which peaked at 10.1% in October last year.

The research analysts considered the average fees charged by for-profit care homes for both older people and those with dementia. This included costs for both publicly funded and self-funded residents. Of course, the cost of care varies between residential and nursing care homes but while nursing care costs had risen by 3.5% it was residential care prices that had shown the steepest inflation.

Key Thoughts

  1. Telling people and jeopardising their anonymity
  2. Not putting the cash in a safe place
  3. Promising or making gifts without understanding the ramifications
  4. They don’t know what they don’t know
  5. Hasty decisions and irrational behaviour
  6. Making unwise investments without professional advice
  7. Estate planning and wills

What is ‘sudden wealth?’

Whilst this is one of those terms that can be immediately understood, it can include a wide range of situations, including receiving the £1m jackpot prize on NS&I Premium Bonds, winning a lottery jackpot, a significant online gambling pay-out, a large, unexpected inheritance, the sale proceeds from a business sale or perhaps a large compensation payment for medical negligence or personal injury.

What has ‘sudden wealth’ got to do with vulnerability?

The best way of answering that question is to put yourself in the shoes of a client, who lives a modest lifestyle, has a job, a house with a mortgage, a family, a car on HP, with a small but growing pension pot and a few thousand pounds in savings. He or she is happy with their life.

Then one day, completely out of the blue, they receive a knock on the door from NS&I telling them that their Premium Bonds have just paid out the £1m jackpot or they’ve just checked their lottery numbers and it’s dawned on them that their numbers have hit the jackpot. They are immediately thrust into circumstances that create vulnerability.

Whilst it is accepted that some people remain calm, considered, and resourceful, they are in the minority. Most people immediately say and do things that either potentially place them in a detrimental position or exacerbate an already vulnerable set of circumstances.

Gifting

Exempt Gifts: A practical guide

The October NS&I Premium Bonds £1m Jackpot prize winners had the knock on the door over the weekend and now have the funds at their disposal.

Our clients who win the jackpot typically start thinking about gifting to their family and close friends. However, with the greatest respect to the jackpot winners we have helped, there is often a lack of appreciation of the inheritance tax consequences associated with gifting, particularly for those not used to dealing with large amounts of money.

CEO

 Helping a retired CEO with a £10m windfall

Casebook Brief
William had retired from his role as CEO of a large international group of companies at 65. He was in receipt of an index-linked pension of c£300,000 per annum from his previous employer’s defined benefit pension scheme, as well as salaries and dividends from a small number of companies that he sat on the board of as a non-executive director (NED). The total household income was approximately £500,000 per annum (gross).

legal attorney jurist signature

What does the Solicitor’s Regulatory Authority (SRA) expect from you when referring to us?

Whilst the Financial Conduct Authority’s (FCA’s) and the Institute of Chartered Accountants in England & Wales’s (ICAEW) rules can be quite precise, in 2019 the SRA opted for a slimmed down set of ‘Standards and Regulations’ governed by a concise set of 7 Principles.

Award winning independent financial advice you can trust.

 

FVC2Pension Transfer Gold Standard logo 2021 cda2

citywire

RQ Certified

RQ have developed a tech enabled due dilligence rating system that objectively assesses the quality and credibility of Financial planning firms. 

rq

Matrix Capital Ltd
Little Hudwick
Monkhopton
Shropshire
WV16 6TG

Tel: 01746 712 900
Fax: 01746 712 901
Email: info@matrixcapital.co.uk


Privacy & Cookie Policy

Twitter Feed

Keep updated