Mike and Jane are age 75 and 73 respectively.  They are in reasonably good health, although Jane had cancer a few years ago but is now in remission.  They have three daughters.  Their estate is currently valued at £3 million, made up of £750,000 home, £250,000 split between a few bank accounts, £350,000 in a self invested personal pension and the remaining £1.65 million in an investment portfolio.  They have no debt and receive a good level of income relative to their outgoings.  Any capital requirements are met from their investment portfolio.


  1. To reduce their Inheritance Tax liability which, before planning, stood at £940,000.
  2. To have access and or control of their capital.


We discussed the usual options available when considering IHT planning, including gifting capital to their daughters or taking out a whole of life assurance policy. Neither of these options were deemed suitable. Firstly, two of their daughters have been through acrimonious divorces so they did not wish to risk losing any further family money to other people, however, by gifting capital direct to their daughters would not satisfy the clients’ objective of retaining access and control therefore this option of gifting capital was discounted. Secondly, Mike did not wish to put Jane though any further medical examinations, which would be requested given the high level of cover and also Jane’s medical history.


Given Mike and Jane’s knowledge and experience of investments, we discussed solutions which utilised business property relief; this would provide them with access and control of their capital but also enable them to benefit from the capital being outside their estate for IHT reasons after just 2 years as opposed to them waiting 7 years as would be the case where capital is gifted.  Since they didn’t want to gift capital directly to their daughters, they were happy paying capital into a trust.  By utilising a combination of solutions, we were able to reduce Mike and Jane’s IHT liability by £140,000 after 2 years and a further £100,000 after 7 years.  Whilst their remaining IHT liability was still relatively large, they felt happy that they had started to plan ahead and asked to discuss IHT planning further at our annual review to consider further planning options.




My wife and I are now both retired and have relied on Wealthcare for guidance and advice on pensions, our investments and on a wide range of financial issues. We have never been failed and the advice has always been prompt, reliable, professional and, equally as important, explained in non financial jargon thereby making understanding so much simpler.

Mr & Mrs Franks - Individual Clients

Both myself and my business partner Andrew have used Wealthcare for a number of years now and cannot recommend them highly enough. They've arranged plans which protect us in several areas including life insurance, critical injury and key man cover, Stephen also organised for a shareholders' agreement to be put in place for extra peace of mind.

Sizzle Creative Agency Limited

It wasn’t hard to choose Wealthcare from the list of brokers eager to win our business. From the very start, they sought to understand our company’s particular needs and (importantly) how I choose to work. They listen and deliver. Available to discuss any query, they are friendly, easy to communicate with, responsive, and always looking to go the extra mile to meet our expectations. How could I do anything other than heartily recommend this excellent organisation.

Timpson Limited

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David Smith, Smith and Jones Management

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