Case Study: Trustees

Couple in their mid 50’s involved in a motorcycle accident. Mrs suffered head and brain injuries. Mrs qualified for £1.3m compensation awarded under Trust. Appointed Trustees were Mr and a local Solicitor

Challenges:

• Mr had to give up work to care for his wife
• Clients needed to generate £30,000 per annum net income and ensure long term sustainability of the income.
• Clients wanted to ensure capital could still grow in the future.
• Mr had no investment experience

What we did:

• Ensured clients were aware and took advantage of state benefits they were entitled to which generated £8,400 pa of income (helping to preserve their own capital)
• Guided Trustees in a decision to purchase two rental properties in order to generate rental income of approximately £11,600 per annum and diversify their investments
• Developed a bespoke investment strategy for the investment of £550,000 within the Trustees risk tolerance
• Arranged the investment portfolio in order to provide an income of around £10,000 pa ensuring their overall income requirements were met
• Structured the investment portfolio tax effectively in order to ensure the impact of income tax and capital gains tax was minimised. These strategies saved over £2,200 pa in income tax.

Results:

• Mr was able to concentrate on caring for his wife and maximising the quality of their lives together knowing that their financial affairs were being managed on their behalf.
• Clients had an income stream of £30,000 pa which met their objectives..
• As everything was structured tax effectively, using maximum entitlements from the state, the clients could see that their capital would last as long as they did. This provided enormous peace of mind for the family.
• The Trustees were satisfied that their investment was suitably diversified.