Keith and Angie

Meet Keith and Angie

Keith and Angie were a couple in their 50s. They had three children, all of whom were either in school or had recently graduated.

What did they need help with?

The couple had successfully sold their first business for a large sum, but their main issue was cashflow.

Most of their invested wealth was managed by a private bank, who had invested the proceeds of the business sale. The bank was only interested in investing money; they ignored tax planning, even failing to utilise Capital Gains tax allowances, and were totally disinterested in Inheritance Tax (IHT) planning.

They also had a previous independent financial adviser, but his focus was on products rather than planning. They were really lacking an overall financial plan for the future.

What we did

We first created a clear and strategic financial plan, including a long-term strategy as well as a more detailed short to medium-term step by step approach.

We supported this with a full detailed cashflow plan; the bespoke detail of which shows how the future plans can be deliverable. This working plan is regularly reviewed and updated; it also allows for alternative scenarios (‘what ifs’) to establish what is possible.

The strategic plans are supported by a private bank switch. We moved their investments to a more proactive bank with a more cost-effective and modern investment approach. We then reviewed Keith and Angie’s pension administration and sourced a smaller, specialist firm who care about their clients to eradicate the hassles the couple had previously experienced.

When it came to Inheritance Tax (IHT), the previous bank had ignored their need for management in this area; their previous adviser had even incorrectly set up a product supposed to cover the IHT bill! We were able to make an immediate change to save a seven-figure amount in IHT. We created a future plan to dramatically reduce the overall IHT loss and a clear strategy on how to help the younger generation, grandchildren and (potentially) further generations too.

We then introduced the family to a highly skilled lawyer to update their legal documentation and make it fully fit for purpose. This involved new Wills that take into account the very different financial circumstances they have been in for over 10 years, replacing the basic Wills that were created when their kids first arrived.

Lasting Powers of Attorney have also been put in place to cover both financial and health issues should either Keith or Angie lose capacity. Alongside the Wills, personalised letters of wish are in place. This explains to trustees how the family wealth should support each of their three children.

We also helped the couple to downsize from a hugely expensive country property to somewhere that can take them into their old age comfortably. This meant they would experience much lower costs, and fewer day to day hassles of managing a very large home and grounds. It also gave the couple and their children a London base, which helps them to avoid early morning and late-night commuting. This step has been taken as part of the drive to simplify their lives and move into a semi-retirement stage with more time for friends and family.

Finally, their eldest son was getting on the housing ladder, so we provide ad hoc help to guide him and any of the other children should they need it.

Keith and Angie often comment in how reassuring it now is to have a financial plan and ongoing guidance from someone who knows them and their situation in detail.