Why rich kids get elite schooling for free.

Why rich kids get elite schooling for free. Elite schools cost 30,000 pounds a year. But some kids go to elite schools without their parents paying a single penny. Mr. Krabs has a granddaughter and he wants to send her to a prestigious boarding school that costs 30,000 pounds a year. But he has a massive problem. If he gives the money to his son to pay the school, the government instantly swoops in. Because his son earns a high salary, the state takes a brutal 45 percent cut of that cash before it ever touches the classroom. That means Mr. Krabs has to earn almost double just to pay the headmaster. But Mr. Krabs is clever. He knows that paying school fees out of a parent's pocket is a trap that keeps the middle class inside the rat race. So Mr. Krabs does something completely bizarre. He builds an invisible legal ghost called a trust fund, drops a stack of income earning cash inside it, and names his little granddaughter as the sole owner of the money. She is only 7 years old. She doesn't have a job, she doesn't pay bills, and she doesn't even know what a taxman is. But on paper, she is now a wealthy investor. Right before the taxman counts the money, the invisible ghost fund sends the 30,000 pounds directly to the school. The system rushes in to take its massive 45 percent cut, but suddenly it hits a brick wall. Under a hidden rule in the system, every single child is legally allowed to receive 12,500 pounds every year completely tax free. And any money above that is taxed at the lowest possible bracket because a 7 year old has no other income. By shifting the money through a child's bank account, Mr. Krabs bypasses his son's massive tax rate completely. The government's giant cut instantly vanishes into thin air, saving his family 15,000 pounds every single year. Follow for more.