Background

Female client aged 72. This client was referred to us by a firm of solicitors following the death of her husband. Her husband had previously dealt with all of his and her investments, which amounted to over £1million. She has three grown up children and seven grandchildren.

Challenges

1. Disorganised investments

• After being widowed she was left with complex structure of investments
• Excess of paperwork had overwhelmed the client
• The portfolio was not structured in a tax efficient way for her

2. Inheritance tax liability

• The client was confused as to what would happen to her estate on her death

3. Insecurity about future income

• Client investments not structured to provide income

What we did

• We created a simple Lifetime Cashflow Plan for client
• Restructured her investments, creating an immediate increase in her monthly income
• Simplified investments and reduced paperwork
• Ensured client uses her Capital Gains Tax allowance and takes advantage of ISAs
• Advised on tax efficient giving to children and grandchildren
• Created a Trust Arrangement to reduce potential Inheritance Tax liability

The results

• Gave client control of her investments, creating peace of mind
• Allowed client to spend more time with her grandchildren
• Increased her net income by £5,000
• Reduced potential Inheritance Tax liability by £100,000 and clarified her estate concerns
• Regularised her monthly income providing her with more stability