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
