Luke was a Bridges Engineer for his local council, responsible for the maintenance and repair work of all the bridges in the borough. He was single and had no ties. Following previous advice from his Bank, he had invested in an Individual Savings Account, Investment Bonds and other investments. The Bank had essentially sold him a series of investments but didn’t really provide a thorough ongoing service. Moreover, the Bank had not really provided the opportunity to sit down and discuss with Luke the consequences of him dying prematurely and the effect of his estate to Inheritance Tax. Luke was single with no dependents and therefore the need for life cover was minimal. Since he felt he was in need of some professional, reliable Financial Advice, Logic Wealth Planning’s name was recommended to Luke via a friend.
Logic Wealth Planning arranged a meeting with Luke to discuss his existing investment portfolio, since that was his main focus. A meeting at home was arranged. Luke had meticulously arranged his entire investment and pension portfolio in a box and presented this to us, but he felt concerned that he may not be investing in the right funds and investment areas as his Bank had not made contact with him for some time. We were happy to carry out the initial consultation which was at our expense and we conducted a full review of his existing investments and pensions. This showed that Luke had accumulated a respectable amount under investment. We provided advice in relation to all his investments and pensions and agreed an ongoing service proposition. One of the matters never brought up with Luke during his encounters with his Bank was the area of Inheritance Tax, Wills and Estate Planning.
A complete financial plan was produced which enabled Luke to understand:
- A complete breakdown of his investments and whether – given his attitude to risk – he was investing in the correct areas or not.
- Recommendations in relation to his investments and whether any alterations or changes were required to reflect his personal situation, needs and goals.
- Inheritance Tax calculations in the event of Luke’s death and the effects to his estate.
- An explanation of the different methods and solutions of negating, reducing and protecting against Inheritance Tax.
- Setting up a personal Will and Lasting Powers of Attorney.
Luke accepted our investment and estate planning recommendations which included setting up a whole of life protection plan in trust to protect against the effects of Inheritance Tax to his estate. Sometime later, Luke complained of indigestion problems and sought medical advice with his GP. Within a few weeks, Luke was unfortunately diagnosed with pancreatic cancer and the illness was in its late stages.
Luke unfortunately passed away in hospital. Logic Wealth Planning dealt with the administration of the estate alongside the recommended Solicitor who specialised in probate matters. As calculated, Luke’s estate was subject to a considerable amount of Inheritance Tax and this was met head on with the recommended whole of life scheme set up by Logic Wealth Planning. The provider was able to pay out the sum assured to the chosen beneficiaries, which in turn allowed them to pay the Inheritance Tax due, to then allow for the application of probate and subsequently the distribution of the estate subject to Luke’s wishes as stated in his Will. In conclusion, life cover played a gigantic part in Luke’s financial planning and minimised the financial burden and unwanted stress to his remaining loved ones during this tragic time.