Chris was referred to us by his son, who was an existing mortgage and retirement planning client of ours.
Chris was in the process of receiving an inheritance, and wanted to explore how the money might be used to generate additional income for them, but wanted to try and avoid eroding the capital over time.
They wanted to try and achieve an annual income of 4%.
As an accountant by trade, Chris was also keen to try and minimise the taxes they might pay on their investments.
Chris & Stella are married, but had both been married previously and both had children from those previous relationships.
They wanted to ensure that when one of them died, the other could continue to enjoy the income from their investments, but when they had both died, the capital would be distributed to their respective children.
We discussed and agreed how their money should be invested, by considering:
We set up an ISA each for Chris & Stella, invested into funds which aim to generate a monthly income. The monthly income achieved by their investments would be automatically paid into their bank accounts.
As ISAs could not directly achieve their wishes on death, we recommended this be achieved by making a small amendment to their Wills, and we introduced them to a local Will Writer who could assist.
The value of investments may fall as well as rise. You may get back less than you originally invested.
Estate planning is not regulated by the Financial Conduct Authority (FCA).