Peter is age 67 and has been retired for seven years. His state and former workplace defined-benefit pension pay him about £54,000 a year. He also receives over £6,000 a year after expenses in rental income from a buy-to-let property, which is worth about £200,000. His main home is worth about £400,000 and both properties are mortgage-free.
Isa, Sipp and investment account invested in shares and funds, cash, residential property
Build up sufficient assets to cover possible care costs, leave assets tax efficiently to family, make an overall positive return, reduce number of direct shareholdings
“I need to ensure that I will have enough assets to cover possible care costs in the years to come,” says Peter. “When I die I will leave a minimum of 10 per cent of my assets to charity, to reduce the amount of inheritance tax (IHT) my family will pay on the rest of my estate.