Background

Sally aged 60. Widow with four adult children, one of whom living overseas. Retired with pension income and investments.

Challenges

1. Client worried about her ability to cope with financial matters and make financial decisions
2. Inherited her husband’s pension fund on his death as a lump sum and uncertain what to do with it
3. Needs to generate a net income of £2,000 p.m. to maintain her living standards
4. Wants to ensure she is able to afford to visit her daughter in Dubai on a regular basis
5. There is a potential inheritance tax liability of £200,000

What we did

1. Restructured her investments to create an immediate and reliable increase in disposable income
2. Reduced the paperwork to make things simpler to understand
3. Ensured client used her Capital Gains Tax Allowance
4. Set money aside from her husband’s pension to fund regular trips to Dubai
5. Allowed for the tax efficient gifting of assets to her children

The results

• Client now understands the investments and assets she has
• Client can afford to visit her daughter in Dubai without eating into her investments or income
• Increased net income by £12,000 per annum
• Maintained the tax efficiency of her own pension arrangements
• Reduced the potential IHT liability and created options for further improvement in later life