This case study shows how we have helped one couple do just that since 1998, during which time their plans and objectives have altered in response to changing circumstances… life happens!
The problem
Terry and Christine first came to Stuart in 1998, referred by their daughter and son-in-law. Terry was a senior executive working in an advertising business at the time who, over the course of being with Miller Knight, cut his work capacity to four, then three days a week before retiring completely in 2007.
Terry had a number of investments and a pension fund but needed to know more precisely what he had and what it was worth, and most importantly what it was going to give him so that he and Christine could plan their retirement in concrete, achievable detail. He also wanted to know how to maximize returns and save tax on his pension and investments because he knew neither were particularly efficiently invested.
9 years through their longstanding relationship with Miller Knight, their position had a planned change in that Terry retired fully and they sold their house in London, thereby releasing a considerable amount of capital. In addition, Christine’s parents died and passed on legacies. This meant that they were now able to consider rather more with what they could do with their capital and investments than when they first approached Miller Knight, being in a position to help their daughter and grandchildren as well as achieve the lifestyle in retirement they had wanted.
The solution
Miller Knight firstly helped Terry and Christine save £100,000 in Inheritance Tax on both their parents’ legacies to them, enabling them to gift money directly to children and grandchildren as lump sums. They have also been able to help their children with regular lump sums towards mortgages, and give regular monthly amounts to grandchildren from excess income and gift allowances to help pay for their grandchildrens’ education, thereby providing those grandchildren a legacy for the future that otherwise would not have been available to them. In addition, they have set up investment vehicles for their grandchildren which have enjoyed 300% returns to date.
The outcome
With Terry and Christine’s objectives changing over time, Miller Knight helped them decide what they wanted to achieve, coupled with a clear understanding of what they needed (from their pensions, capital and investments) to maintain their lifestyle despite all the ‘moving goalposts’ and during a particularly turbulent time both financially and economically (with the dot com bubble and burst of 1999–2001 followed by the 2003 crash and financial crisis of 2008 onward). They also wanted to cover their long-term health needs, in as much as they are able to predict what these may be, whilst also ensuring tax efficiency in their investments.
To be able to do all this and provide support to help the future generation is a source of great satisfaction for Terry and Christine; one in which Miller Knight has been pleased to have played a background role.