Sarah and John are both divorcees and have lived together for 15 years. They each have a child from their previous relationships. They own their property in equal shares under a tenants in common arrangement; the property is their main asset and they have individual investments. They are likely to both need their own NRB and RNRB tax allowances in order to avoid inheritance tax. They do trust each other but have simple Wills that leave their respective estates to their own children. They would like the surviving partner to be able to live in the property but are concerned this may be tax ineffective if a lifetime interest is granted. They are also concerned about their own children's relationships with their partners and understand the financial impacts of a failed relationship. Sarah’s daughter is expected to inherit a significant sum from her father’s estate.
This is a common occurrence where more advanced planning is needed to address the needs of the client. A Beneficiary Protection Plan would address all the concerns with both the tax efficiency and protective benefits that Sarah and John desired.