Case Studies
Client Case Studies.
Client Case Study - Inheritance Tax Planning 1
Background
- Recently widowed client with no children
- Home £300K
- Property £300K
- Investments £200K
- Cash £500K
Challenge
Estate Planning
- No will
- IHT liability of £400,000
- Needed a highly secure level of income to cover potential long term care needs
Confusion
- Client not used to dealing with investments
- This resulted in poor investment performance over time and payment of too much tax
- Did not understand investment and estate planning issues
What We Did
- Developed a bespoke investment strategy
- Simplified and consolidated investments
- Used Deed of Variation to reduce potential IHT
- Implemented Trust arrangements to immediately reduce potential IHT by £100,000 and increase income
The Results
- Created a stable and increasing income for life, sufficient to cover any possible long term care needs
- Eliminated £100,000 of IHT immediately with further savings over time
- Put in place a strategy that will eventually halve the IHT bill
Client Case Study - Inheritance Tax Planning 2
Background
- Retired couple with one adult son
- Home £300K
- PEP/ISA £250K
- Investments £150K
- Cash £150K
Challenge
Estate Planning
- Both clients were not in good health
- Wanted to leave as much as possible to their son
- Pension income was in excess of expenditure and estate values were therefore increasing
- Needed immediate solutions
- Concerns about the cost of Long Term Care for both of them
What We Did
- Our financial planning report confirmed that the costs of Long Term Care could be met
- It showed how IHT planning could be effectively met with the correct use of wills and trusts
- We organised a planned strategy that immediately removed some of their assets from their estates, and used income from these assets to fund a retirement strategy for their son
The Results
- Immediate reduction in IHT liability
- Further reductions planned in two and seven year’s time
- Tax efficient retirement strategy in place for son
- Peace of mind that both Long Term care and IHT objectives could be met