Every parent wants nothing but the best for their children. Providing them with a solid education is one of the greatest gifts we can give.
However, the cost of education can be a daunting obstacle for many parents. From primary school to higher institutions and beyond, the expenses associated with education can be overwhelming.
All the financial burden and stress can be avoided by setting up a financial arrangement that helps save and invest specifically for your children’s education expenses. And that is exactly what an Education Trust does.
Our team of Trust Managers hosted a webinar to share a comprehensive guide on how to secure a bright academic future for children.
You can watch the webinar below:
In our usual fashion, participants had the chance to seek clarity on grey areas. Our Trust Managers have taken the time to answer all the questions.
How do you manage rising inflation with the invested funds when fees are changing constantly?
The figures presented already accounted for inflation by projecting the fees into the next 8 or 14 years. However, there would be a review of the assumptions periodically to ensure that the contributions are on track to hit the target amount.
What’s the coverage area in terms of education outside of the home country that involves Forex?
We are able to pay the fees of your beneficiaries in any country that allows for international students as long as the funds are made available.
What’s the minimum term after registering for the trust before one can start using it?
You can start utilizing your Trust immediately after you set it up.
Is there a Dollar option for the Education Trust plan?
Yes, there is if your ward is in an institution that pays USD.
Can the trust plan be upgraded from basic to premium even if one starts with the basic plan first?
Yes, you can upgrade your Trust service from basic to premium, however, you may be required to pay additional fees for restructuring the Trust and most importantly you would be required to make the initial 1,000,000 deposit upon the upgrade.
Can we do a direct debit into the trust fund?
The client can instruct their bank to initiate a direct debit from their bank into the Trust fund. The Trustees make the debit upon your request; however, you cannot make any debit on your own.
What’s the minimum for the dollar trust plan?
The Education Dollar Trust has a minimum subscription of $5,000.
What happens to the funds in a trust if a parent opens a trust for a child and that child passes away before time?
If there is no other Beneficiary upon the passing of a Beneficiary, the funds would revert to the Settlor (You).
If I enter a 9-year plan for a 3-year-old child, can I access the money before the 9-year mark?
Yes, you can access your money, but please note that the funds would be invested in interest-yielding instruments and liquidating the investment before the maturity date may amount to pre-liquidation charges.
What if I’m done paying fees and I have a balance in the trust account, will it be refunded?
If you are certain that the objectives for which you are setting up a Trust has been fulfilled you can choose to have the rest of the funds transferred to you. However, please note that you would be required to give a notice period of at least three business days before requesting for the Trust balance.
What are the benefits of the basic and premium education trust?
The Basic and Premium Education Trusts have the same objectives however both plans have different incentives they come with. The Premium Education Trust for example comes with an educational fee projection calculator while the Basic Trust does not. Please reach out to Trustees@afrinvest.com for further information.
What are the benefits after the N200,000 investment?
The Trust would be deemed to have been set up and it can start paying the fees of your beneficiary as the Trust fund can cover as long as you continue to make contributions into the Trust fund.
Can one plan in advance for an unborn child?
Yes, you can, however only through certain parameters because you need a beneficiary to fully set up a Trust. Please reach out to Trustees@afrinvest.com for further information.
Do you have a similar scheme with dollar deposits?
Yes, we have other Trust arrangements by which you can have Dollars in your Trust. Please reach out to Trustees@afrinvest.com for further information.
What is the guarantee that Afrinvest will still be a going concern beyond 10 years? What will happen to the funds contributed if Afrinvest ceases to exist?
Afrinvest is a well-regulated and reputable institution. It is therefore undoubtable that the firm would still be a going concern for a long time. However, should the firm cease to exist, Afrinvest Trustees is regulated by the SEC. The regulatory body will ensure clients’ assets are protected by appointing another trust house to take over those assets.
Let’s assume my child is going to start school this coming October. If I start the contribution now, will you be able to take care of the fees?
Yes, if the Trust has been duly set up, it can start paying for the fees of your children immediately. Please take note that this is subject to the availability of funds placed in the Trust.
Can one fund both secondary and university education simultaneously?
Yes, you can fund your Trust to accommodate the payment of your ward’s secondary and university education. Kindly speak to a Trust advisor via email Trustees@afrinvest.com for more information.
What’s the difference between monthly and yearly contributions?
The difference is basically in the frequency at which the contributions are made. The rates applicable to the respective investment tenors may also differ.
What of other universities abroad that are not Ivy League?
We can operate an Education Trust for any university that allows for international students/payments.
Is there some sort of arrangement or possible credit facility to help a parent/guardian meet up with a child’s school while paying back or still saving to the trust scheme?
No, there is none. The Trustee would ONLY make payments based on the funds available in the Trust at the time.
If my child is in JSS1 now, can I start saving for her to attend a private university or state university?
Yes, you can start putting funds in your education Trust to serve as a means towards saving for the choice of university you want your child to attend.
Can the money be used for other uses based on circumstances?
The money can only be used for the payment of educational fees and welfare expenses of the Beneficiaries.
Can the money be used to buy shares on behalf of the child?
We would naturally not in the first instance invest in Equities due to their high volatility, however, if the client, whilst understanding the Risk consents to equity investments, we would invest in the same.
That’s a wrap!
Do you still have questions or need clarifications? Please feel free to contact our Trust Managers at Trustees@afrinvest.com for assistance.
If you are looking for ways to make your money work for you, visit www.afrinvest.com to see how we can help you reach your financial goals.
Till the next webinar, keep investing!