Fiducia Wealth Management
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Mrs Gray was widowed 2 years ago. Before he passed away, her husband dealt with the finances. This left her well-provided for with substantial assets of approximately £2.5 million including their home. 


Unsure of her financial future now that her husband is no longer there to manage the finances, Mrs Gray wanted to ensure that she wouldn’t run out of money. Another area of concern was she didn’t want the family paying Inheritance Tax unnecessarily.


Fiducia recommended a detailed cash flow analysis to add clarity and bring peace of mind. This process illustrated that she should have enough income and capital and led to IHT planning without affecting her ability to meet projected expenses. Fiducia also advised her to take out Whole of Life Assurance. By writing life assurance under trust, it is likely that the entire proceeds of the claim could pass to the children tax-free. This would enable them to pay the inheritance tax eventually due on her estate. Another recommendation was to explore Business Property Relief through holding AIM shares using ISA wrappers. The advice to the client was that whilst this would increase the risk on part of her assets significantly, this should provide IHT relief after 2 years to reduce the tax eventually due. Lastly, Fiducia recommended a Holdover Relief Trust, creating a discretionary trust using her general investment account. This started the 7-year clock with potential substantial savings made in IHT once the 7-year period had elapsed. Although there will be some income tax liabilities within the trust, the potential IHT and CGT savings should outweigh these.

Case study learning points

  • Careful planning provided potentially substantial savings in the IHT liability.
  • Even though there were insurance costs and tax payable within the trust, the overall benefit should far exceed the expenses.
  • More importantly, a combination of the above strategies provided much needed peace of mind to Mrs Gray. She could focus on spending time with grandchildren rather than worrying about her finances.
Fiducia Wealth Management

If you would like to know more about how we as Financial Advisers can help you set, plan and achieve your financial goals then financial planning section of  our website: Financial Planning or send us email at: [email protected]

The information contained in our website is for guidance only and does not constitute advice which should be sought before taking any action. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly, no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occurred in connection with the content hereof and any such action. Professional financial advice is recommended for every case.

Fiducia is a multi award-winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border.

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority. FCA No. 408210