Navigating Trust Complexities
"They discussed their financial situation with James and talked through their goals and aspirations for the future. The couple were looking for some advice – they felt the amount they held in cash was too high and so wanted to explore the investment options available to them"
Mrs and Mrs M's story
Mr and Mrs M first met with our Chartered Financial Planner, James Wadsworth, during the summer of 2022. During the meeting, the couple discussed their financial situation with James and talked through their goals and aspirations for the future. The couple were looking for some advice – they felt the amount they held in cash was too high and so wanted to explore the investment options available to them. Mr M explained to James that his father had sadly passed away earlier in the year and that the estate was in the process of going through Probate. At that point, probate was progressing according to plan and the couple even discussed the possibility of investing the proceeds once Probate was granted.
James put together a financial plan and met up with Mr and Mrs M a little later so he could talk through his recommendations, which they were both happy to proceed with. It was during this meeting that Mr M expressed his concern over the sale of his father’s property. A trust deed had been discovered and Mr M asked James if he could take a look at it. It transpired that Mr M had a cash buyer lined up, ready to purchase his father’s property but towards the end of the conveyancing process, it came to light, that the property was owned by a trust and not, in fact, by Mr M’s father. Not only were the couple unaware that the property had been left in trust, what made matters worse was that the trust was very poorly worded, adding unnecessary complications to the whole process.
The couple was concerned that the trust would affect the sale of the property, particularly as they already had a cash buyer in place. Not only that, but they were worried about the tax implications of the trust owning the property and subsequently the trust selling it and distributing the proceeds to the five beneficiaries (Mr M’s siblings). Mr and Mrs M were very concerned and not sure who to turn to. James reassured the couple and explained that this was not an area of expertise for a Financial Planning firm, but that he would get in touch with a specialist who could provide them with some advice.
Here at PenLife we work closely with other industry professionals who are experts in their chosen fields. We believe that by working together with specialists, we can provide a more comprehensive and robust level of service, helping clients to make the right choices in life. It also gives our clients peace of mind knowing that they will be dealing with trusted professionals.
James contacted a local Solicitor who specialises in properties held in trust and arranged a meeting with Mr and Mrs M. The Solicitor spent time with the couple and explained in detail about the trust, the tax implications, and how they can access the proceeds. Mr and Mrs M are now fully informed and understand the implications of the trust and selling the property. What’s more, they are extremely relieved that things can now progress and expressed their gratitude at how James had “gone above and beyond to find us additional support and advice on a trust/Inheritance Tax issue.”
By referring the couple to a Solicitor, James saved his clients the job of looking for the right specialist, ultimately eliminating unnecessary stress. Working closely with the Solicitor, James regularly checked in with his clients to make sure they were happy with the whole process, which they were – as you can see from the VouchedFor review they kindly left James:
Overall Rating: 5
Quality of Advice: 5.0
Quality of Service: 5.0
Value for Money: 5.0
What were the circumstances that caused you to initially look for a financial planner?
Having owned our own business, we knew we had to think about our retirement and not depend on state allowances. We also had some money to invest from the sale of a property and inheritance. We were not confident or interested in ‘playing the investment game’ via banking portals or other financial tools. We were looking for a company that would offer a bespoke service tailored to our individual needs. We also wanted to be sure that the company really understood our circumstances.
How has James Wadsworth helped you?
James has recently carried out our annual review and suggested key changes to our investment portfolios. He has also gone above and beyond to find us additional support and advice on a trust/inheritance tax issue.
Have you seen the outcome you were hoping for?
What could they have done better?
Nothing. James is in regular contact and makes every effort to ensure we are informed about changes in our investments etc.
If you have a particular question regarding your financial future, why not take the first step today? We have an array of fantastic Financial Planners – if you’d like speak to one of them and start your journey, please email firstname.lastname@example.org, call us on 01904 661140, or alternatively, head to www.pen-life.co.uk/contact.
Please note: The contents of this case study are for informational purposes only and do not constitute individual advice. The information contained within this is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The Financial Conduct Authority does not regulate cashflow planning or tax and trust planning. The value of your investments can fall as well as rise and is not guaranteed.
The information in this case study was correct at the time of writing.