Financial Case Study
Even with the help from her housekeeper and gardener, Patricia is starting to find the property a little too big, the stairs difficult and household administration and maintenance a burden. After carefully researching her options, she feels Auriens is an ideal next move.
What was identified?
1. Currently, with a disproportionate amount of Patricia's wealth tied up in her home, staying in her current property will not offer a diversified long term financial gain with her capital failing to work hard and provide a strong return.
2. Patricia's household running costs are much higher than anticipated, and after including her general day to day expenditure, she is surprised at the total annual spend required to upkeep her household and lifestyle.
3. Furthermore, with the valuable family home in her estate, there is a significant inheritance tax liability on Patricia's death. With two children, as things stand, HMRC would be the largest beneficiary of Patricia's estate.
With a well-considered investment strategy, Patricia can live life to the full at Auriens whilst maintaining the value of her estate.
A practical solution
It was agreed that a fresh start at Auriens would help Patricia maintain her lifestyle, financial security, and independence. With care costs at home significantly higher than at Auriens, the move would also be financially savvy should Patricia require significant care in the future.
- Patricia was advised that selling her main residence and investing a portion of the proceeds in a diversified investment portfolio would provide her with a sustainable income to fund the cost of living at Auriens, whilst most importantly maintaining the overall value of her estate.
- The investment portfolio was devised to a) maximise returns for Patricia's tolerance to risk; and b) permit withdrawals as require, avoiding liquidity issues.
- But utilising an HMRC-approved tax structure, Patricia can also significantly reduce her inheritance tax liability.
With a well-considered investment strategy, Patricia can live life to the full at Auriens whilst maintaining the value of her estate.
Patricia will also significantly reduce her inheritance tax liability, enabling her to leave a substantial legacy to her family.
