Mr X had a business in Hertfordshire. We were first appointed as brokers to the business on the recommendation of his accountant. We subsequently went on to arrange all their employee benefits but this example highlights the personal service given to Mr X.
When we were first appointed Mr X was 60. He had a pension in place but not funded anywhere near sufficiently. We immediately re-structured to enable large contributions to be made at the company’s year end to maximise the tax advantages. We also set up pensions for the next generation, his children, who were to take over the business.
We then developed the broader financial planning as time went by:
- Additional profits were extracted and invested
- Life cover and Income protection were put in place for the next generation
- Mr X gradually retired and he supplemented his income from investments
- He left his pension untouched as it was his most tax-efficient investment
- We facilitated his taking of tax-free cash at different times to help the children
- We actively managed a separate investment portfolio to provide his income
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- We assisted in structuring his will to compensate those children not involved in the business
- We effected a life policy to meet his inheritance tax liability
- As it became clear he would be forced to buy an annuity at age 75 we started to maximise withdrawals from the pension fund
- We arranged the annuity to maximise income
- The annuity income is being paid into his children’s pension fund as a contribution as he doesn’t need it. This neutralises the income tax position and avoids increasing potential inheritance tax
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We continue to advise him and his family and look forward to doing so for many years to come.
To find out how we might assist you with your financial plans, contact us today.