Selling their business – what next?
Isobel and James travelled the world, combining their enthusiasm for experiencing new cultures, with leisure. They had built their business from the ground up and work had very much dominated both of their lives.
Following the agreed sale of their business, they met with their IFA and although happy with the service, they were becoming increasingly uneasy with the discussions they had regarding the imminent substantial increase in their wealth. They wanted to do so much with their money including; setting up a charitable trust to help benefit some of the communities they had visited, setting up trusts for their grandchildren and planning to help mitigate the large inheritance tax liabilities associated with their respective estates. In the months leading up to the sale, James and Isobel were losing confidence in their adviser’s ability to deal with the complexities of advising on the setting up of a charitable trust and the planning discussions around their sizable estate and income needs in retirement. They arranged a meeting with a large well-respected national IFA firm and this went well, but before they decided to proceed, a friend of Isobel’s who was also a client of VWM, recommended that they speak with us.
Our initial informal discussion focussed on how Isobel and James would like their life to look after having such a busy work life. Travel was high on their agenda but other than this, they hadn’t considered what was going to make them feel fulfilled and intellectually challenged in the years ahead. What would they do with their time? They later advised us that this conversation was pivotal and focussed their attention on ‘planning to live their lives to the full and not just planning the money’. Although confident the national IFA firm could help in planning the money aspect, they liked the bespoke personal approach offered by VWM and agreed that they did not wish to be one of a few thousand clients of a large corporate.
We introduced them to a private client lawyer with proven expertise in setting up Charitable Trusts, to instil confidence in how they could achieve their charitable giving goals. We also discussed a strategy for gifting to allow James and Isobel to help with their grandchildren’s future and also enjoy seeing their own children benefit from gifts, whilst they were still alive. We explained in clear terms how the order of making gifts was important to help mitigate the impact of Inheritance Tax on their estates. To help them envisage how their money would comfortably support their lives in retirement and achieve all their objectives, we built a cashflow model which helped them see how this could be achieved.