Hi, I'm trying to figure out how to afford private secondary education for DS (best option for the moment) and my mother offered to help. She is retired and is lucky to receive a good pension with enough money left each month to be able to afford it from her own income. Could she pay for it through monthly deposits into the school account? Is that legal? Does it make any difference if the money is sent to my account or to the school account? Are there any tax implications for our family in the UK? I haven't had time to look into it yet, so just hoping one of you might have experience with this. Thank you very much!!
school usually want payment in advance at the beginning of each term, so she won't be able to do it monthly. but otherwise no problems. you will hold the contract with the school though and be liable if she doesn't pay for any reason.
Plenty of schools run monthly direct schemes, so no problem with that (although there may be a small additional administration fee). Payment from abroad directly to the school account should be possible. Lots of grandparents pay school fees, so they will be quite used to dealing with these issues. Just have a word with the school bursar if you need help setting it up.
It would be sensbile and cheaper if she paid each term by direct debit - the school can send the forms. It would be better if she paid the school direct and would probably keep her happier too knowing where it was going. It also means any gift (if she dies in 7 years) is a gift to the grandchild not via you not that that is likely to make too much difference but it might help if she is over the inheritance tax band.