Creating a legacy for your family

 

Background 

Graeme, a retired business owner and his wife Carol were referred to us by a friend. They had a combined estate worth circa £2.7m and had a number of different conflicting priorities and concerns. So far the advice they had received from various professionals lacked any cohesion. 

They wanted to create a plan that allowed them to help their grandchildren with University fees, getting established in their careers and their first homes. Additionally they wanted to help their own children by way of loans if required. 

They were worried about how to protect the legacy from any unforeseen situations the children or grandchildren may face like divorce or bankruptcy. They were also looking to simplify how they managed their wealth. 

Our approach 

The process took a few months to build a complete understanding of Graeme and Carol’s requirements. It was important to provide Graeme and Carol with information enabling them to make informed decisions about their own financial future and their legacy as well as showing them the impact certain decisions would have on their future cash flow and tax status. 

We worked with a number of different professionals during this time to ensure the plan was fully aligned to their wishes and delivered the goals that were important to them. 

The outcome 

We were able to meet all of their objectives, significantly reducing Graeme and Carol’s income tax liabilities in the process. A number of trusts were established and investment portfolios built to reduce both the amount of risk and cost in achieving their objectives. 

As they had surplus income we advised them to regularly gift into one of the trusts. They were delighted with the results. Not only was there an immediate reduction in IHT of over £200,000, but a further reduction of over £10,000 each year through the ongoing gifting. We were also able to cap the IHT liability on a further substantial portion of their wealth. 

Our advice enabled Graeme and Carol to have peace of mind that their money was being well looked after and that they had provided the legacy they wanted to for their family.