Mrs H – Surrey

Mrs H had received a divorce settlement and was unhappy about the level of risk associated with the way in which the settlement had been invested 2 years prior. In addition, as a result of our initial analysis, it was discovered that Mrs H was not making use of her Capital Gains Tax allowance and that she had an Inheritance Tax liability in excess of £850,000.

By undertaking a comprehensive Financial Planning exercise we were able to build an Integrated Wealth Management Plan that detailed the steps necessary to reduce risk within her portfolio; to generate the additional income that was required; to reduce her exposure to Capital Gain Tax; to remove completely the Inheritance Tax liability and to set up Trust arrangements capable of receiving immediate and future lifetime gifts for the benefit of her two sons.

Mrs D had received a formal financial settlement offer from her ex husband as part of the divorce proceedings, but she was unhappy with it. We acted as an independent third party and produced a detailed Capital Resources and Cash Flow Analysis report encompassing Duxbury calculations that provided direct evidence of her financial needs. As a direct result of our report the initial settlement figure was lifted from £800,000 to £1.2 million and a settlement agreed.

Mr and Mrs W were nearing retirement, a very significant time for most people.

They were concerned that they had sufficient resources to maintain their standard of living and to do the things that they had always planned to.

By undertaking a true financial planning exercise, including a detailed income and expenditure analysis, we were able to show that they could afford to do the things they planned and we were able to advice on the construction of a suitable income producing investment portfolio to "top up" their pension incomes. Further, we were able to undertake some detailed estate planning for them thereby saving a considerable amount of inheritance tax and ensuring that their estate will be distributed as per their wishes. 

Mrs W, a Client in her late 80's, needed to move into a nursing home with the attendant costs for accommodation and care. 

Following the sale of her home, our objective was to ensure that sufficient income was generated from an investment portfolio to cover the shortfall in care fees, whilst trying to maintain the value of the capital as much as possible for her beneficiaries.

After carrying out detailed analysis of income and expenditure requirements and making certain allowances for items such as inflation and increasing care costs, we advised on the construction of a suitable high income investment portfolio with a large degree of capital security.

Mrs W has now been in the nursing home for three years content in the knowledge that her fees are being completely taken care of whilst her capital is being protected. She knows that a substantial sum will be available for passing on to her beneficiaries, that she is financially secure and therefore a significant and worrying burden has been removed for her. 

Mr & Mrs W had worked hard over the years and were now enjoying a comfortable early retirement. They felt financially secure and had significant resources, but at the same time were not confident that they had enough for their long term needs. They wanted to assist their children to get on to the property ladder and were considering making direct gifts of capital; but what if they ever needed the money themselves? What about the tax consequences?

By undertaking a detailed analysis of income, expenditure and available resources within an Integrated Wealth Management Plan^TM, we were able to identify, even in the worse case scenario, the total amount of capital they were ever likely to need. This meant that any available capital over this figure could be used for other purposes, such as gifting to children or charitable donations.

It is important that such gifts are seen within an overall Financial Planning context and account taken of items such as Inheritance Tax, generation skipping and possible divorce of beneficiaries (an outright gift to a beneficiary will be included in full in any divorce settlement). We were able therefore to provide the necessary advice and assistance with making the gift via suitable Trust arrangements and included protection for grandchildren and other potential beneficiaries, whilst at the same time reducing the long term tax and administrative burden for all concerned.

Mr & Mrs B had been given the opportunity to purchase some additional land alongside their current home. This was important to them as it included a right of way. They were what can be described as “asset rich” (particularly in property) and “cash poor” so therefore could not see how they could raise the required funds to purchase the land. The land would also increase the overall value of their estate and thereby their Inheritance Tax liability.

By taking a comprehensive look at all of their arrangements and tax liabilities we were able to design an integrated strategy that would enable Mr & Mrs B to fund the purchase of the land from their own pension funds without additional borrowing and to hold the asset via Trust arrangements in a very tax efficient manner. We were also able to reduce their existing Inheritance Tax liability by making use of Wills and Trusts arrangements as well as providing further resources for their beneficiaries (children) to cover any remaining liability. Plans were also put in place to protect the estate from the implications of either party requiring long term care or becoming mentally incapacitated. Finally we were able to ensure that adequate resources were in place via pension and investment arrangements to ensure that their retirement was as financially secure as possible.

Mr & Mrs M were around 4 years from full retirement in the UK and already owned a villa abroad. Mr M had changed jobs a number of times over the years, including periods working abroad so his pension arrangements were somewhat fractured.

We helped Mr & Mrs M consider in detail their ongoing income requirements and looked at various "What if" scenarios such as working a few years longer, retaining a small property in the UK or selling up completely, thereby releasing further capital for investment.

By looking at the various options and the amount of income and expenditure under each, we were able to work with the Clients to develop a strategy within an Integrated Wealth Management Plan^TM that involved putting pension plans into payment, constructing an income producing investment portfolio, reducing their Inheritance Tax Liability and ensuring that their wealth was passed on to their loved ones in an efficient manner. Further, we were able to provide suitable guidance on the capital that should be spent on upgrading their property abroad and how much would be available for a UK based home.

Mr H was approaching retirement and was beginning to search for a buyer for his business which had been very successful for a number of years. His accountant had already suggested a sale price but Mr H was unsure as to whether or not this would provide sufficient resources for him to remain "financially independent".

We were able to work through a detailed analysis of income and expenditure with Mr H, look at possible future scenarios regarding major expenditure items, build in allowances for unforeseen emergencies and plenty of luxuries! Only then could we establish a true capital requirement, or sale value, for his business which was somewhat different to that suggested by the accountant.

Mr H now has the confidence to know that if the correct sale price is achieved for his business he will be able to enjoy a financially secure retirement and know that he will never have to worry about work again.

Mrs H was married to a senior executive. Under the financial settlement she was to receive a share of his pension benefits built up over a number of years and with a number of employers. There were 13 sets of benefits in total, including Personal Pension, Executive Pension Plans, both Money Purchase and Final Salary Occupational schemes, plus a FURB.

We collated all scheme information, transfer values and legal documentation, then provided the necessary advice surrounding the establishment of a new arrangement for receipt of the transfer values as ordered by the Court. We dealt with all aspects of the implementation of the Pension Sharing Orders and arranged for Mrs H to draw an immediate tax free cash sum from one of the existing contracts. This enabled her to set up her new home and be confident that her long term financial future was secure.

We have recently completed a case for a divorcing couple who ran a business and had a SSAS arrangement that contained both commercial property and some agricultural land.

Under the divorce settlement the husband was to keep the property and his former, already retired spouse, the agricultural land. There was a big advantage to all in keeping the property assets under a pension arrangement, but the existing SSAS provider would only allow the “purchase” of the land outside of pension (the SSAS was being wound up). Buying the land would have had huge tax implications and required mortgage borrowing.

We were able to advise the scheme Trustees on their options, make use of post A day legislation, establish a new Self Invested Personal Pension (SIPP) and arrange the transfer “in specie” of the land to the new SIPP arrangement, thereby meeting all of the Clients objectives, saving a large amount of tax and completing the clean break necessary for the divorce.