Taking care of the next generation
Mike and Lauren were approaching retirement and concerned about their finances. They were thinking of releasing some equity from their family home and buying a flat they could rent out, but they weren’t really sure if this would be worth their time.
They also wanted to know how much they could support their children financially, but they were concerned that by giving too much away now, they wouldn’t have enough to live on in the future.
As well as their pensions and some ISAs, they had inherited a share portfolio and accumulated a range of ‘special offer’ investments and fixed-rate bank deposits over the years. This was uncoordinated, no longer generating the income it once did, and was a constant source of unwanted paperwork.
We introduced them to Thrive WP
Through Thrive WP, VWM Wealth Managing Director Lisa Johnstone created a picture of what really mattered to them most in life – their priorities, passions, and stumbling blocks. This helped to pinpoint where exactly their wealth should be taking them.
It was clear that as well as spending more time with grandchildren, there were still other hobbies and passions the couple hadn’t explored. Lisa delved further to find out what it was they both really wanted to do, and discovered they’d always dreamt of going on a world cruise.
Utilising our cashflow modelling system, Lisa showed them how much they needed to secure their desired future lifestyle. This showed that they actually had more money than they needed to live on, which would mean there would be a significant inheritance tax bill to pay when they died.
Lisa established it was best for them to use their money to help their children and grandchildren while they were still alive. They agreed a programme of gifts over time to various family members and expanded the gifting to charities that were close to their hearts.
Even then, there would still be enough money left to go on that long dreamt of world cruise. Mike and Lauren realised that there was nothing stopping them from fulfilling their holiday of a lifetime, and in fact it would be best to do that now while they were still fit and healthy.
Mike and Lauren were absolutely delighted they were able to help their children and see the benefits first-hand and avoid them having to pay an inheritance tax bill when they died.
They also had the confidence to book a 35-day luxury cruise to Canada and New England, knowing that they would not be in any danger of running out of money in the future.
Contact us to find out how we can help you.
Names, as well as any details which could be used to identify, have been changed in order to protect our clients’ identities.