Our society is changing. People are living longer because of advances in medical science. In turn, this means that your money in retirement has to last longer than ever before. Retirement is changing too, as more and more people look for a flexible retirement where they can continue working for longer but perhaps on reduced hours.
Two of our clients, Brian and Susie, had a house worth just under £1 million, and savings and investments of just over £1 million. As things stood, there would have been an Inheritance Tax liability of £540,000, a little over 25% of the estate.
In this example, Sally came to us when her husband Ben died. Ben had always been the one to take care of their finances. Sally still had one son at home, so as well as managing her husband's investments, she also needed to provide an income for her for the rest of her life.
At Price Ferguson, part of our ethos is the fact that an essential part of estate planning includes properly constructed Wills, as well as the use of a variety of trust arrangements. In the first instance, it is desirable to at least write a simple Will so that there is clarity concerning your estate when you die.