Dealing with sudden wealth

We helped a couple work out how a sizeable inheritance would be able to change their lives for the better.

Background

An existing husband and wife client received an inheritance of nearly £2 million. They had not previously had access to such wealth and needed help to manage this windfall. They wanted to set up homes in the UK and France, and needed to know that they would have enough income to sustain this lifestyle.

Problems and challenges

The clients’ priorities were to pay off their existing mortgage, renovate their home and buy a holiday home in France. After this they wanted to ensure that they had enough money to fund their future lifestyle.

They planned to spend time living in France each year, but would remain UK residents. We needed to make allowance for their potentially complicated tax situation.

They were keen to take the hassle out of managing their money so they could focus on enjoying their retirement. They also wanted to reduce risk as much as possible since they would not be accumulating significant further assets.

Our approach

We showed them how much they needed to secure their desired future lifestyle. We examined the implications of making all the planned changes to their lifestyle, such as the home in France.

We created an investment plan that would generate a tax-efficient and flexible income, taking the lowest amount of risk necessary to achieve this. They were able to easily understand their options which allowed us to examine other scenarios and ways to improve their position.

Outcomes and impact

We helped them to realise that they had enough assets to fund their own lifestyle and to assist their children financially, while taking a low level of risk with their money. They enjoy the income they need now and have the flexibility to withdraw money if needed.
We review their plan each year so we can react to any changes and re-assess whether they remain on target to meet their long-term goals. We also regularly examine their investment portfolio and aim to ensure it matches their risk profile.