Helping you look forward to a hard-earned retirement – with a whole of life financial plan
A potential client approached Ellis Bates with several clear goals in mind, namely to ensure she had cash to live on for her foreseeable future, that she invest and grow her long term savings and to mitigate her inheritance tax liability, and so protecting her daughter’s future position.
During the meeting, the client outlined that she wanted to focus on and achieve long-term growth on her cash savings, in excess of inflation but also needed access to and control over these liquid funds. The Adviser recommended she invest recent monies received from the sale of a buy to let property in an ISA and GIA as step one to achieve a much better return on her cash.
With regards to understanding the structure of inheritance tax (IHT), the Adviser worked with the client to fully understand all her property and land assets, including her smallholding of over 25 acres and for example the agricultural property relief available on her renting out of these facilities.
The Adviser recommended the client boost her pension funds with a SIPP (Self Invested Personal Pension), so that funds were moved outside of her estate from an IHT unfriendly environment to help further reduce her IHT liability.
Together they agreed an affordable monthly figure and budget (based on typical income and expenditure) and established a Whole of Life plan written in trust (within said budget), to provide her daughter with a tax-free lump sum to pay HMRC in relation to her future inheritance tax bill.
The client will meet with her Adviser every year, to review progressively moving more funds across to the SIPP and ISA each new tax year for example, thus utilising her annual pension allowance to boost her pension pot and progressively reduce her future IHT liability, whilst also being in control of all of her funds.
Like all clients, circumstances change and annual reviews of estate planning are vital, and this particular client is due to inherit further substantial funds from her mother at some point but will be able to seek expert and timely advice.
Following on from all the discussions, planning and reporting, our client expressed just how much happier she was and how in control of her finances she felt, giving her peace of mind that any complications due to future inheritance or unforeseen changes will be reviewed and assessed with her Adviser and she will be given options and solutions to meet her future needs.
She feels more relaxed about current income, her family’s financial future and is looking forward to a hard-earned retirement.
