"Our goals can only be reached through a vehicle of a plan, in which me must fervently believe, and upon which we must vigorously act. There is no other route to success."
Inheritance tax planning / case study
Jean, Age 78 Widowed
2 grown up children
IHT Liability £440,000
- Prior to his death, Jean’s late husband had taken care of all of their financial matters, so Jean wasn’t used to dealing with money.
- Her immediate priorities were to address her Inheritance Tax situation so that her children could receive as much of her estate as possible.
- Ensure that she could secure sufficient income to cover her potential long term care needs.
What we did
- We developed a bespoke investment strategy for Jean that consolidated and simplified her investments in line with both her income needs and her risk profile.
- Her investments are now professionally managed on her behalf.
- We also implemented some Trust arrangements to immediately reduce her potential IHT liability by £120,000 and to increase her income. After 7 years a further £100,000 of IHT saving would be made through further use of trusts and gifts.
- We created a stable and increasing income for life, sufficient to cover any possible long term care needs.
- We eliminated £120,000 of IHT immediately and will make further savings over time.
- We increased Jean’s income, allowing her to gift more of her assets to family without worrying that this would affect her standard of living.
- Lastly we put in place a strategy that will eventually more than halve the IHT bill with cash available under trust to pay the eventual liability without waiting for probate.
As with our other case studies, this is based on real client scenarios, but with slight alterations to protect the identity and privacy of the individuals. You should not make investment decisions on the basis of the information in this case study without taking advice from a suitably qualified and authorised adviser.
Visit our Information Hub
Information is the key to wise decisions. The Otus Information Hub is packed with articles, videos and case studies to guide you in making smart choices about your financial future.
Get in touch with Otus
If you like what you’ve seen so far, please get in touch to ask any further questions you may have.