Wealth Management and Estate Planning Case Study

The Client

Mr & Mrs H came to us as their previous adviser had retired and they now had assets with a number of companies who were being paid legacy commission but they were not receiving any advice.

They were both in their 80s and had large sums of money spread across predominantly equity based investments and a discretionary managed portfolio with no real investment strategy. Their total Estate was in excess of £2.5m, yet no one had talked to them about Estate planning. They also had an existing trust with multiple standalone investments.

Their Needs

They wanted to simplify the administration of their portfolio and to review the funds which had been added over a number of years to make sure they were offering them the best returns. They also wanted to look at ways of reducing the potential Inheritance Tax (IHT) liability on their Estate that would be payable on their death.

The Solution

We overhauled their investment strategy and simplified the administration by bringing 18 different investments onto a single ‘platform’. That gave them online access and the ability to obtain a consolidated valuation in an instant.

We were also able to link a family trust to their personal accounts to further simplify things for them and their family.

Given their age and the fact that they were in relatively poor health we looked at ways to mitigate IHT in as short a time as possible using Business Property Relief (BPR). We transferred some of their share portfolio into a portfolio of UK AIM listed shares. After holding this for 2 years the portfolio should qualify for BPR and fall outside of their Estate for IHT with a potential tax saving of 40% on the value of those assets. We also moved some of their other higher-risk assets into a separate BPR based scheme that is designed to provide steady returns whilst qualifying for BPR relief after 2 years.

The Benefits

By consolidating their assets onto a platform we enabled them to monitor their investments easily. The Estate planning we carried out has the potential to significantly reduce the IHT liability on their Estate once it has been in place for 2 years.

We have also established a regular ongoing review service to help ensure their investments remain appropriate for them and to ensure they make use of the ongoing tax-breaks available to them.

This information is not intended as investment advice. The products mentioned above are not suitable for everyone and you should seek advice before deciding to invest.