Here is an example of how we helped Mr & Mrs Owner who needed an exit strategy for their business that would enable them to retire as soon as possible and maintain a comfortable living standard throughout their retirement.
The clients didn't fully understand pensions and tax issues. Their affairs were somewhat disorganised.
There was an IHT liability of £640,000. The clients were unclear what to do about this.
An income of £30,000 (net of tax) was required to supplement drawings from the business. Mrs Owner wanted clarity on how much they could spend sensibly each year.
What we did
Simplified and consolidated their investments.
Developed a bespoke investment strategy (within risk tolerances) and calculated the lump sum capital required to fund retirement lifestyle.
Using a cashflow analysis, calculated how much could be gifted to reduce the IHT liability.
Re-drafted wills using special trusts, saving £150,000 of IHT immediately, in conjunction with a gifting strategy eliminating the remaining £490,000 of IHT.
Began discussions with the general manager of the business regarding a vendor-financed management buyout