Each of our case studies showcases the real impact our advisers have on clients’ lives — from helping them reach their financial goals to uncovering and supporting the deeper reasons behind their plans. Beyond the numbers, they reflect the confidence and reassurance that come from having a trusted adviser by your side.
In this story, we explore how proactive, ongoing management of inheritance tax (IHT) planning can offer lasting peace of mind.
What was your ‘why’ for seeking financial advice?
I first sought financial advice together with my mother, through a solicitor, after my father died. We put in place a deed of variation. After my mother passed away and I inherited her property, my inheritance tax liability was zero, as my share on the sale price fell below the nil rate band. This situation then changed with my own inheritance tax position.
At that point, I decided to take financial advice rather than going down the legal route. I am single, so I thought that would make more sense and be more practical. I then worked with my adviser to take out an insurance policy to mitigate against the shortfall in my overall inheritance tax liability. I followed the advice of my adviser to make sure that I was in the best position possible.
I gifted my adult children a portion of my inherited money, placing the remainder into a discretionary trust. I have also taken out more insurance to ensure that if I do not survive the statutory seven years, there is no issue covering the inheritance tax charge that would arise from the potentially exempt transfer (PET) rules. Additionally, I have explored various strategies to maximize my family’s financial security, including setting up a pension that offers pension protection from inheritance tax. This approach not only safeguards their future but also ensures that my loved ones can benefit from my financial planning without facing substantial tax burdens. As I consider the long-term implications of my decisions, I’m focused on creating a legacy that supports their dreams and aspirations. In addition to these measures, I have sought professional advice on understanding inheritance tax strategies to further enhance our financial plans. By staying informed about the latest regulations and opportunities, I can make more informed decisions that benefit my family long into the future. Ultimately, my goal is to create a robust financial framework that not only provides immediate support but also fosters generational wealth. Additionally, I am continually researching inheritance tax reduction strategies that could further enhance my financial planning efforts. By leveraging various investment vehicles and tax-efficient gifting practices, I aim to ensure that more of my wealth is preserved for future generations. This proactive approach not only offers peace of mind but also reinforces my commitment to providing lasting support for my family’s endeavors.
What was the financial advice process like?
It’s been an ongoing process, my intention being not to pass on a potentially complicated situation for my children to have to deal with. Initially, and after talking through and considering my affairs, a financial plan was drawn up.
I did find reading through the many pages somewhat overwhelming at first.
But with the help of my adviser, I worked through it systematically and began to understand the logic and reasoning behind what was being recommended. Knowing my financial affairs were in order also gave me peace of mind, and I have also shared everything with my children – they are fully aware of what has been put into place.
How has the relationship between you and your financial adviser evolved?
As we have gone through various processes, we have needed to add additional insurance policies to mitigate against inheritance tax. A big part of that is assessing my overall situation and being aware that things do change and that sometimes assets need reinvesting or placing somewhere new; property values go up, and there have also been recent changes that mean that my pension is now counted towards inheritance tax. That all needs dealing with. It’s crucial to regularly review these factors to ensure my estate plan remains effective. Additionally, I am exploring options that combine inheritance tax and life insurance to provide a financial cushion for my beneficiaries. This proactive approach will help in managing the tax implications and safeguarding my loved ones’ financial future.
The inheritance tax has drifted into the background for now, and we’ve reached more of a stage of regular reassessment in our annual reviews, as well as being available for any additional questions I might have. This shift has allowed us to focus on more immediate financial strategies and long-term planning. However, it remains essential to stay informed about the impact of inheritance tax changes, as they could influence our future decisions. Regular updates will ensure we’re prepared for any adjustments in legislation that might affect our estate planning.
I have also recently updated my Will which I know is important, ensuring that both my children will be the executors.
What made the whole experience stand out?
Each adviser I’ve worked with at Flying Colours has been exceptional in that I have been able to establish a good rapport with them. My current adviser shares similar experiences to mine in the gardening world, which is a bonus.
As a professional, he understands my situation, and I find it very easy to talk to him and to understand how he explains things.
Taking the financial advice and getting it set up can be quite complicated, and it can be quite unnerving as well, so an adviser who makes it easy and provides you with peace of mind is invaluable.
What advice would you give to someone thinking about taking financial advice?
I’d certainly highlight the importance of engaging the services of a professional. In my own experience being given financial advice over the years has given great peace of mind. It is important to find someone with whom you share a rapport and have confidence in, which can, of course, take time to establish.
The other thing I have always enjoyed is having my adviser local to me – I find this easier than doing things remotely, although I know that it’s entirely possible and even preferred by some people.
Find out if you may be impacted by inheritance tax with our free-to-use IHT Calculator. Or, if you would like to discuss your inheritance tax concerns, why not book in a free consultation with one of our expert advisers? Book a time here.