It was late autumn when Mike and Jeanette updated their wills. Mike had received a sizable inheritance and his solicitor suggested he spoke with us about reducing the growing inheritance tax (IHT) liability on his estate.
We took the time to build a thorough understanding of Mike and Jeanette’s current situation. They wanted to use some of the inheritance to help top up their income and it was also their wish to be able to provide some financial support to their grown-up children. After spending some time with them to understand what they wanted to achieve, we got to work, and were able to provide a solution that far exceeded their expectations.
We recommended Mike sold one of the recently inherited properties and with some of the sale proceeds use the right type of trust to move some of the money immediately outside his estate. The type of trust we recommended, provided them with an income for the rest of their life, reduced their IHT liability, yet left them in control of their financial future.
With the rest of the sale proceeds Mike and Jeanette put rather large cheques inside Christmas cards for each of their children. With their family sitting down to dinner, they gave each child their card. When the cards were opened, the surprise, joy and sheer delight on each of their children’s faces gave them something money cannot buy; seeing their children able to pay off their mortgages, reduce their financial worries, and look forward to a lifestyle they hadn’t thought possible.
“It certainly seems that CSW are ahead of the curve in terms of their processes, engagement model and financial analysis methods. This leads to confidence, plus an effective working relationship being established which, in my opinion, are key criteria when deciding on an independent financial advice service.”
At Chamberlain, Stean and West, we understand that minimising the amount of IHT that has to be paid when you die is just one aspect of the financial planning process. Effective estate planning can also involve keeping access and control of your money, so that you can continue to enjoy the life you deserve and help your loved ones whilst you are around to see them enjoy it.
As with all investments, you need to be aware that the value of your investments can fall as well as rise. This means there is no guarantee you will get back the same amount you invest.