Legacy Planning

CASE STUDY

 

Background

John, a retired company director, and his wife Mary were referred to Manse Capital by one of their five children. They had a combined estate worth circa £3m and had numerous, often conflicting, priorities and concerns. The advice they had received to date from various professionals always focused on a particular area of expertise and lacked joined up thinking.

They wished to create a multi-generational legacy to help their grandchildren and later generations with tertiary education costs, establishing them in careers and their first homes, whilst also being able to provide financial relief to their own children by way of loans if needed.

It was important to them, however, that their legacy was protected from any adverse financial circumstances the children and subsequent generations may face in the future, such as bankruptcy and divorce, as well as discouraging profligacy and laziness in their heirs. Finally, they were also keen to be able to progressively step back from the active management of their wealth.

 

Our approach

The process of understanding John and Mary’s requirements and gathering information on their financial position took a number of months. Part of the process was to provide John and Mary with information enabling them to make informed decisions about their own financial future and their legacy.

During that time we coordinated and managed a team of experts across varied professions and liaised with the wider family to ensure a cohesive planning process. A number of the team of professionals were already working with the client, others were introduced by us.

 

The outcome

We were able to meet all of their objectives, significantly reducing John and Mary’s income tax liabilities. We established a series of three trusts, all managed by a panel of trusted individuals. The investment portfolios were carefully created for the trusts, reducing both the amount of risk and cost to only that which was necessary to meet their objectives.

We also advised regular gifting from surplus income to one of the trusts. The outcome was an immediate reduction in IHT of £258,000, plus a further reduction of £16,000 each year from the ongoing gifting. In addition, we were able to cap the IHT liability on a further substantial sum.

Our advice enabled John and Mary to step back from the management of most of their monies and provided the peace of mind that their wishes for the provision of a legacy would be met.