Estate Planning

Estate planning is about reducing your potential inheritance tax liability ( IHT ), but more importantly it is about planning to ensure you do not give away more than you can reasonably afford. Estate Planning ensures you retain control of your assets in case you need to rely on them at some stage in the future.

Joyce had retired from teaching three years ago, her husband died last year. Joyce went to see an adviser who recommended she take up an equity release scheme after her husband died to provide funds to meet her desired lifestyle.
Joyce wanted to help her daughter out with education costs for her two grandchildren, Katy (9) and Jonathon (4), estimated to be some £10,000 per annum. Joyce wanted to visit her sister in America and to spend more time once a year, with her. She wanted to preserve the estate, whilst remaining in the family home, because of the size, location, close proximity of friends and the memories it held.

Joyce had provided some financial assistance to her daughter and wanted to ensure her son was not left out.

The advice provided was (i) downsize to a smaller house in another location or (ii) take equity out of the family home by way of an equity release mortgage. Otherwise it would mean completely restricting her lifestyle.

We were able to show Joyce how she could achieve her objectives simply and without purchasing a substantial equity release mortgage – whilst making provision for financial assistance toward her grandchildren’s education – and provide some financial assistance for her daughter through the use of trusts and rearranging her affairs – without the unnecessary expense and high cost of Equity Release. Furthermore by cashflow modeling we were able to demonstrate how her income and expenditure would be affected using various “what if”, scenarios.

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