- These investors have sufficient income from their pensions so they would like to pass on their assets to their children tax efficiently
- Shifting their investments' focus to income rather than growth is not necessarily a good way to mitigate a potential IHT liability
- Their investments do not match their risk profile
Reader Portfolio
John and his wife
72 and 71
Description
Pensions, with-profits funds, Isas and trading accounts invested in funds and shares, cash, residential property.
Objectives
Cover costs of holidays and large expenses, help family financially if necessary, pass on assets and home to children to help fund their retirements and grandchildren to buy homes, minimise IHT liability.
Portfolio type
Inheritance planning
John is age 72 and his wife is 71. They both receive state pensions and he receives two final salary pensions. These provide them with an income of £44,500 or, after tax, £38,400 a year. Dividend payments and interest from cash takes their total annual income to about £48,000 a year.