Like many of those we help as part of our Later Life Financial Solutions, Mr H came to us for an entirely different reason: to discuss his annual tax return. As he was in his late 50s, the conversation turned to his plans for retirement – an area he had put on hold because it had become simply ‘too complicated to deal with’.

He was in a long standing relationship and wanted to enable his children from a previous marriage, several of whom worked with him, to benefit from the business he had built up over the years, while still giving his partner a secure income for life should he die.

We developed a solution which involved him gifting a share of the business to a trust with his partner having a life interest in the income and his children being capital beneficiaries. This enabled his partner to utilise her income tax allowances by ensuring her an income for the rest of her life but kept the shares in the business for the ultimate benefit of his children, whilst retaining the voting rights in the company, and so keeping full control during his lifetime as well as saving a significant amount of inheritance tax on his death.

He is now able to carry on running the business, secure in the knowledge that both his partner and children have been provided for and reducing the chances of future disagreements. As a couple, they are also now paying several thousand pounds a year less in income tax.

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