Case study – wealth management

Following the sale of an extremely successful business for a £multi-million sum our client needed assistance in a number of areas. They were facing a substantial tax bill. Although cash rich, the need to generate a significant on-going income whilst also providing future security for their extended family was paramount.

It was also necessary to retain significant accessible cash sums for planned future expenditure.

Our Approach
Working with our client’s tax planning Accountants, we took the time to really get to know the family and to truly understand their needs. We recognised that although they were very accomplished business people, personal financial planning of this nature was not something they had ever undertaken before and therefore many of the recommendations put forward for consideration were new to them.

They needed our support and guidance to help them assimilate our recommendations and to feel truly comfortable about implementing the suggestions made.

Benefits to Our Client
Our investment strategy helped to reduce income tax payable and offset capital gains tax. Future inheritance tax (IHT) bills have also been reduced considerably. We utilised a combination of pension contributions, investment accounts, ISAs, Investment Bonds, Enterprise Investment Schemes, Discretionary Trusts and Discounted Gift Trusts to achieve the best outcome for our client.

Effective use of gifting out of income has also helped to reduce future IHT.
For the large cash sums retained we recommended a cash management service thus reducing the personal administrative burden of spreading the funds over a number of institutions to avoid the financial risk of being over exposed in one bank and to achieve the best returns without the need for continual direct client involvement.

The family can now meet their income needs in the most effective and tax efficient manner, and have the flexibility to increase or reduce their income as circumstances require.

Their investment assets can generate growth and income tax efficiently and they have the peace of mind that their estate is protected for future generations.