Can I Add My Children to SSAS and Cascade My Wealth Tax-Efficiently?
SSAS stands for Small Self-Administered Scheme. It is one of the best family wealth vehicles available, offering flexibility, tax efficiency, and the chance for you to build a legacy.
SSAS is one of the best tools available for growing your wealth and cascading this down to future generations. If you’re keen to create a legacy, SSAS is the solution.
Can I Add My Children as Members to the SSAS?
Yes, you can add children over the age of 18 as members of the SSAS. 18 is the youngest age at which somebody can be a Member Trustee, as all members of a SSAS are Member Trustees.
For our clients who have husband and wife companies, we always suggest that they include their children in the SSAS. This means the Company can make contributions on the children's behalf, helping to build their retirement funds from a very early age.
The Benefits of Adding Children to SSAS
- Children added to the SSAS don’t need to be employed by the sponsoring employer to become members.
- Making contributions for your children, who are employed by the Company, gives you more tax deductibility. Therefore, a twofold benefit from having your children in the SSAS.
- Adding children to the SSAS makes it easy to cascade the value of the benefits held in SSAS to your children in a highly tax efficient manner.
- When children are added to the SSAS, family assets such as property and land can be secured, providing your children with a valuable legacy in the years to come.
- Each member of the SSAS retains their percentage of the pot and can nominate their own beneficiaries.
- SSAS offers flexibility and control over investment decisions, so you can help build your pension fund faster for your children. Explore SSAS compliant Investment options returning up to 15% per annum.
- Funds held within SSAS are protected from creditors, securing your wealth for future generations.
- SSAS can invest in commercial property, transfer fund assets, and sell assets such as property and land. This helps grow the fund for children, provides funds to support the growth of the business, and contributes towards the financial security of your children’s futures.
- SSAS allows for the opportunity to pool pension funds. This allows the fund to invest as a whole and access greater investment opportunity. From purchasing commercial property, to receiving higher rates of interest for certain investment options due to the increased size of a pooled fund.
Discover how to include your children in SSAS to maximise the benefits.
SSAS: The Perfect Tool for Family-Run Businesses
A SSAS is the perfect tool for small to medium sized businesses. A SSAS must be established by a Director of a Limited Company and can include up to 11 members. SSAS generally works best when its members remain within the family. This keeps wealth within a family, allowing Directors to create an intergenerational wealth trust.
To find out more about SSAS and the benefits it can provide your family and business, visit our SSAS Video Hub.
