• Client in late 50's – recently divorced
• Previously married for 30 years
• Not working – receives £40,000 pa tax free maintenance income until husband decides to retire (then ceases)
• Three grown up children
• Current partner based offshore

Challenges

1. Confusion

• Limited past experience with financial issues
• Feeling slightly shell-shocked and vulnerable
• 10 different bank accounts
• Lumbered with multiple tax and financial issues as part of divorce settlement

2. Taxation Issues

• £120,000 Capital Gains Tax (CGT) liability across shares and unit trusts
• IHT liability of £686,000 currently sitting in her financial structure

3. Risks

• Share portfolio consists largely of only 1 share (huge risk)
• Maintenance income dependent on ex-husband continuing to work (uncertainty)
• The client wants to maintain her £40,000 net income post retirement

What We Did
a) Managed clients fragile emotional state with care and sympathy.
b) Reviewed the shares for CGT and risk issues and devised a strategic sale programme managing the conflicting goals of minimising CGT and minimising risk.
c) Created an offshore tax structure to invest tax free and create a pot of money to be used if the client elects to follow her partner offshore in the future.
d) Consolidated and simplified all her investments into one investment platform to make things simple and manageable.
e) Created a Retirement Cashflow model that showed the client clearly how her income will alter in retirement.