Answers to the questions parents ask us most. If you still have questions after reading, please contact us.
Is it legal?
Yes, it is perfectly legal. It has been scrutinised by DW Fox Tucker, leading Adelaide solicitors, who checked all the laws pertaining to the legality of Scholarship Saviour.
What if after some time I wanted to get out of the program?
We establish a market price and arrange for a sale to be conducted.
How long would this take?
We estimate approximately 6 to 8 weeks.
In the event that I am made redundant or have an accident and am unable to pay, what would happen?
In the event of death or an accident, we’ve arranged for free insurance to pay out.
In the event of being made redundant, we encourage you to take out an insurance policy at a very low premium at the beginning.
If it is a workplace accident, you should be covered by workers compensation.
What if I get divorced?
We don’t wish that upon you, but the reality is that almost 50% of marriages end in divorce, so we have to make safeguards.
We have designed a contract for these units to be held in trust for your children, so neither parent can be in a situation where they can disadvantage the child in later years. We have the necessary documentation in place at the beginning, should you be in the unfortunate situation of facing a divorce.
Can I contribute more if I am able?
Yes. Because you have a line of credit, you can pay lump sums off any time you have extra money.
What happens to the money if my child doesn’t go to university?
We are aware that some children might not be academics; they may be more suited to a TAFE course. It has been predicted that TAFE fees will become almost equivalent to half of university fees (see articles). In these cases you can use the funds to pay for their further education at TAFE.
Should your child choose not to do either, and they are still under the age of 18, you as their legal guardian can direct what happens to the proceeds. After all, you were the one paying into the scheme.
At the end of the period (when my child completes university), how do I receive my money?
Upon winding up the trust, after the properties have been sold, the trustee holds the proceeds from the sale. This money belongs to the unit holders. As a unit holder, you are entitled to your share in proportion to the percentage you invested in the scheme, together with the capital gains portion.
Am I liable for capital gains tax?
Yes. We do things strictly legally, however there are a number of ways we can minimise the tax. We repeat: minimise, not avoid. Our Tax Saviour will do an individual assessment of your situation and come up with a comprehensive solution tailored for you.
That is why we recommend the book How to Legally Reduce Your Taxes, and Robert T. Kiyosaki’s Rich Dad, Poor Dad. We have free copies to give away to our clients.