High Net-Worth Families

Generally, relatively few high net-worth clients receive adequate advice on the protection and inter-generational tax planning of their estates, be it pensions, Death in Service (DIS) benefits, life cover, property assets, savings and investments or lifetime inter-generational transfers, it is up to you to rectify this with your own clients and make sure they are as prepared and informed as possible.

Integrated financial planning and effective legal planning are essential in delivering guaranteed outcomes for the distribution and protection of your clients’ estates. If they do not have a Will, they may be unaware of the complexities and misdirection of wealth that can occur under intestacy rules. If your clients, like so many couples, have simple wills directing their estate to each other and then to their chosen Beneficiaries in equal shares, they should achieve their desired distribution, but they may be missing an opportunity to protect the surviving partner’s interests. Importantly, they also may be missing key tax planning opportunities which are overlooked in most higher value estates, and they will not provide inter-generational benefits to their chosen Beneficiaries.

The unpredictability of life requires us to be prepared but you ought to take action now to address the shortfalls of the most common estate planning arrangements of your clients, particularly the taxation considerations which require bespoke planning. On the death of the first of your clients, protective and tax efficient planning can be put in place and similarly protection, flexibility and inter-generational tax planning can be delivered to the ultimate Beneficiaries of their estate when both of your clients have deceased.

Such planning can be achieved by upgrading their current planning to a Solidus Plan or a Beneficiary Protection Plan from Solidus.

A customised plan for your clients may address any number of concerns such as;

• Risk to their wealth following the death of the first partner e.g. remarriage.
• Loss of tax allowances because their Wills may not maximise available tax allowances.
• Redirection of the first to die’s estate if the surviving partner changes their Will.
• Potential protection of the inheritance left to their chosen Beneficiaries if they were to divorce.
• There may not be IHT payable when your clients die but it means their partner is highly likely to pay IHT because of their combined wealth.
• Erosion of wealth when the inheritance left to their Beneficiaries is left to future generations e.g. their grandchildren.

If you look beyond the direction of their estate to their nominated Beneficiaries you will appreciate the many potential issues that exist and some of them are unique to high net-worth clients.

Many of the protection and tax issues can be effectively addressed with enhanced planning and advice using a Solidus Plan or Beneficiary Protection Plan from Solidus customised to your clients’ specific circumstances.

Single persons, whether widowed, divorced or simply single, require specific advice customised to their needs.

Protective benefits for married couples is particularly important and is a focus of our customised solutions.

The control and distribution of assets within blended families can be complex, our solutions ensure the desired wealth transfers are guaranteed.

Co-habitees frequently have inefficient tax and protective arrangements for their estates, which can easily be avoided with bespoke planing.

Estates where Inheritance Tax is a potential issue can take legitimate actions to mitigate IHT. The majority of estates of £2 million+ have inefficient estate planning arrangements.