iTrust Scholar
Education Fee Planning Trust
Key Features of iTrust Scholar
iTrust Scholar is designed for parents, grandparents, or guardians who want to set aside money for a child’s school or university education in a way that is protected, flexible, and tax-efficient. It provides a dedicated structure to safeguard those funds for their intended purpose, with the option to make additional contributions over time as your circumstances and the child’s needs evolve.
Benefits
Flexible Educational Funding
Set aside and protect funds for tuition, boarding, university, vocational training, or overseas study at any stage of education.
Milestone-Guided Funding
Milestone-Guided Funding — your Letter of Wishes or Education Plan can identify ages, university stages or other milestones for the Trustees to consider, without giving a Beneficiary an automatic right to the Trust Fund.
Trustee Control and Purpose Protection
Education capital remains under trustee control rather than passing outright to a Beneficiary. This can reduce the risk of premature access or misuse and allows the Trustees to continue applying the fund for its intended educational purpose.
Inheritance Tax Planning
Gifts into the trust are normally chargeable lifetime transfers for inheritance tax purposes. Where the donor has sufficient available nil-rate band, no immediate lifetime inheritance tax may be payable, but the position depends on the amount settled and the donor’s previous chargeable transfers.
Relevant-property trust charges, including periodic and exit charges, may apply depending on the value and circumstances of the trust.
Structured and Ongoing Contributions
Additional contributions can be made over time, including regular savings or one-off gifts, subject to Trustee acceptance and the appropriate gifting documentation.
Direct Payment of Education Costs
Direct Payment of Education Costs — Trustees can pay schools, universities, colleges, tutors, training providers, accommodation providers and other relevant suppliers directly where appropriate.
Structured Education Loans
Structured Education Loans — where appropriate, Trustees can make properly documented loans for tuition, accommodation, relocation or other education-related costs. Any later variation or forgiveness is a separate Trustee decision and is not automatic.
Professional Oversight and Flexibility
Fully supported by an educational funding schedule, letter of wishes and professional trustee’s, the iTrust Scholar is perfect for those wishing to ensure their children's education is secure and protected.
How it Works
Set Up The iTrust
Appoint the trustees and create the funding schedule.
Make An Initial Gift
Place a lump sum, to cover the initial fee’s.
Agree Milestones
Your Letter of Wishes or Education Plan can identify ages, university stages or other milestones for the Trustees to consider, without giving a Beneficiary an automatic right to the Trust Fund.
Grow the Fund
Additional contributions can be made over time, including regular savings or one-off gifts, subject to Trustee acceptance and the appropriate gifting documentation.
Release Funds
Trustees can pay schools, universities, colleges, tutors, training providers, accommodation providers and other relevant suppliers directly where appropriate.
Review & Oversee
Trustees follow your intentions and act in accordance with your educational support schedule and letter of wishes.
Tax and Student Support
The effect of trust payments or resources on student finance or means-tested support depends on the beneficiary’s circumstances and the applicable rules at the time.
Tax treatment can differ depending on who makes the gift and who benefits. In particular, where a parent settles funds for an unmarried minor child, income arising within the trust may be subject to specific settlor-parent tax rules. Adviser or tax review should therefore form part of the implementation process.
Additional Features
Included with your trust at no extra cost
Protect Their Future With iTrust Scholar
The iTrust Scholar provides a structured and professionally administered way to set aside capital for education. Trustees can fund school, university, training and associated costs over time, respond to changing educational needs and avoid the need to place the whole fund outright in a young Beneficiary’s hands.
Your Letter of Wishes and Education Plan provide guidance, while the Trustees retain the legal discretion required to administer the trust properly.
Getting Started
Speak with your iTrust Adviser or contact iTrust121, where our friendly and professional team is ready to help you explore your options and see how iTrust Scholar can support your educational plans for children or grandchildren.
Contact UsFrequently Asked Questions
What is a discretionary beneficiary?
A discretionary beneficiary is someone whom the trustees are authorised to benefit but who does not automatically own a fixed part of the trust fund.
Can beneficiaries demand money from the trust?
Not simply because they are discretionary beneficiaries.
They can ask the trustees to consider assisting them, but they do not normally have an automatic right to demand a particular sum.
What is the Letter of Wishes?
It is the personal guidance that sits alongside your legal trust deed.
The trust deed explains what the trustees can do.
Your Letter of Wishes explains what you would like them to consider doing.
Is it legally binding?
No.
That is intentional.
The trustees must retain sufficient discretion to respond to circumstances that may be very different many years from now.
Can I update it?
Yes.
That makes it one of the most adaptable parts of the estate plan.
Important information
Important information: The benefits described are general illustrations of how the relevant iTrust may operate when appropriately structured and funded. Actual legal, tax and asset-protection outcomes depend on individual circumstances, the assets involved, the terms of the trust and any supplemental instruments, effective implementation and applicable law at the relevant time. Trustee decisions remain subject to the trust deed and their legal duties. Tax treatment and protection from third-party claims cannot be guaranteed and specialist advice may be required.
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