How to pass on more money to your family

Our clients wanted to pass on assets to the next generation. Our advice brought great happiness to the family, peace of mind that they were never going to run out of money. In addition the family’s wealth was protected from Inheritance tax.


Our client was looking to stop work and his wife had recently retired. They didn’t know how much money they needed in retirement and were unsure how much support they could give to their two sons.

As well as their pensions and some ISAs, they had inherited a share portfolio yet lacked investment knowledge. They had accumulated a range of ‘special offer’ investments and fixed rate bank deposits over the years. This was uncoordinated, no longer generating the income it once did and a constant source of unwanted paperwork.

Our clients wanted to downsize their home and move closer to one of their sons. They were considering using the equity they will release by downsizing to buy a flat which they would also rent out to generate an income in retirement.

Their primary concern was that by giving too much money away now, they wouldn’t have enough to live on in the future. They wanted to minimise their tax bill, but not if this had implications later on, especially with regard to their own income and standard of living. They were also concerned about the amount of hassle renting a property would entail.

Our approach and recommendations

Over a series of meetings during which we provided our clients with clear thinking time we built up a picture for our clients and ourselves of what really mattered to them in respect of their lives.

Utilising our financial modelling system we showed them how much they needed to secure their desired future lifestyle.

This highlighted that our clients had too much money for their personal needs, resulting in a significant inheritance tax liability on their death.

We established it was best for them to use their money to help their children and grandchildren while our clients were still alive. We agreed a programme of gifts over time to various family members and expanded the gifting to charities that were dear to our clients hearts.

Outcomes and Impact

Our clients were able to understand their strong financial position and this knowledge allowed them to make gifts to each son without fear of ever running out of money. Our clients were absolutely delighted that they were able to help their children and see the benefits first hand.

They had the confidence to move home to be closer to one of their sons.

These gifts ensured assets were passed down to the next generation avoiding significant inheritance tax payments.