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The Inheritor

The Inheritor

How can I protect my financial security and that of my daughter who is facing a potential divorce?

Client Circumstances

  • Mrs Reeve, 63, is an only child and a widow
  • She has 1 daughter, in a rocky marriage
  • She has significant investments and capital
  • She has significant income from pensions and investments
  • She does not require further income
  • Inheritance Tax (IHT) is already a problem for her
  • She has inherited £600,000 from her late mother

Recommended Solutions

  • Mrs Reeve completes a Deed of Variation on her mother’s Will
  • Redirects inheritance to a Discretionary Trust
  • Beneficiaries of trust are Mrs Reeve and her daughter
  • Mrs Reeve invests capital in trust in diversified, tax efficient portfolio, with minimum tax reporting and Trustee involvement
  • Produces an “income” flow from Trust to daughter

Benefits from advice given

  • Avoids inheritance forming part of Mrs Reeve’s estate
  • IHT savings £240,000
  • Capital invested in a simplified environment with potential for growth and income
  • Provides financial security for daughter
  • Safeguards inheritance in the event of daughter divorcing
  • Mrs Reeve could still benefit if needed
  • Provides additional tax efficient “income” flow for daughter up to £30,000 pa
  • Daughter can fund pension from additional “income” flow
  • Investments can be assigned to daughter if/when domestic position is resolved

Talk to us now!

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Future Servicing

We will look to carry out a regular review of your circumstances, objectives, needs and portfolio performance to ensure all arrangements continue to be suitable and advise of any changes that may be appropriate.

This example is for illustrative purposes only, based on current legislation and tax allowances. Tax rules and regulations are subject to change.

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