Case study on Estate Planning

Helen and her daughter’s story

Helen wanted to ensure her three daughters benefited from her estate.  Innes Reid were recommended to Helen by her daughter, Mary, who had been a client of Innes Reid for 10 years. Aged 89, and a widow, Helen wanted a full review of her affairs with the objective of simplifying her estate now that she was getting older. She was aware that on her death her 3 daughters would be faced with a significant Inheritance Tax (IHT) bill but, she had only undertaken limited estate planning.

Time was not on her side. We also noted that her investments had been accumulated over many years and any changes ran the risk of unwanted Capital Gains Tax (CGT) charges. Helen recognised professional advice and positive action were essential and Innes Reid’s holistic approach was a perfect fit.

How we helped

We arranged a meeting with Helen and Mary to explain what Innes Reid could do for them. At the meeting, we discussed Helen’s current circumstances, her personal and financial goals, and her overall objectives. We then proposed a intensive series of actions, carefully planned over almost a decade to simplify her financial arrangements and save Inheritance Tax.

Each year we conducted a comprehensive review of Helen’s finances to ensure she stayed on track.

“I had known Mark at Innes Reid for over 10 years – he had always provided me with sound advice and an excellent service so he was the natural choice when it came to recommending an Adviser to my Mother.

Mark’s expert advice enabled her to completely turn her situation around meaning that over £400,000, which would otherwise have gone to the taxman, has stayed within our family. It proves it’s never too late – if you’re in a similar situation, there may still be time to make a significant difference.”  Mary (Daughter)

Sadly, Helen has since passed away but despite leaving her Inheritance Tax Planning until later in life, the work we had done during her last 8 years had paid off.

On an estate valued at £1.687,174.70 million the Inheritance Tax payable was £74, 144.00 which represents 4.39% of the total estate (with planning) as opposed to £481,559 it would have been without planning (28.54%). As her estate has been simplified, the Inheritance Tax return to HMRC went in just 11 weeks from the date of death.

We are delighted to say that her daughters are still valued clients of Innes Reid which highlights the value of long-term relationships in financial services and the growing demand for intergenerational planning.

Mark Reidford – Managing Director at Innes Reid “A lot of people don’t seek the help of a Financial Adviser in later life as they think it’s too late to reduce the Inheritance Tax on their estate. In our experience, it is never too late to start planning and ‘every little bit helps”.

In the case of Helen and her daughter, we planned many actions over several years, most of which had an immediate positive impact on her IHT position, proving that some action is always better than no action. The cumulative effect of those individual actions and our overall strategy helped us achieve a significant tax saving for the family which is always very satisfying.

We are delighted with the outcome and would like to thank Helen’s daughters for allowing us to share her story.

If you want to know more about Estate planning or would like to speak to a member of our team about your personal circumstances please get in touch. You can find out more about our Inheritance Tax planning here.

Disclaimer

This Case Study outlines the actual results that we have achieved for genuine clients of Innes Reid Investments Limited who have consented to this document being created and approved its content. Full names have been withheld and stock imagery has been used to protect their identities. The content is for informational purposes only and should not be taken as advice. You should seek advice from an Independent Financial Adviser before taking action in relation to IHT Planning.